Indian benchmark indices snapped a five-session winning streak on Friday, as a sharp selloff in information technology stocks and fresh geopolitical concerns dragged the markets lower. The BSE Sensex fell 607.08 points, or 0.78%, to close at 76,802.90, while the NSE Nifty declined 154.90 points, or 0.64%, to settle at 24,013.10.
During the trading session, the Sensex plunged as much as 940.26 points, or 1.21%, touching an intraday low of 76,469.72. The correction followed a strong rally in recent sessions, with the Sensex gaining 3,577.43 points, or 4.84%, over the previous five trading days, and the Nifty advancing 1,006.4 points, or 4.34%.
IT Stocks Under Pressure
Technology stocks bore the brunt of the selling pressure after global IT giant Accenture trimmed its full-year revenue growth guidance, raising concerns over demand trends for the sector. The BSE IT index tumbled 3.57%.
Among the top losers on the Nifty50 were Infosys (-6.50%), TCS (-3.06%), Tech Mahindra (-2.33%), HCLTech (-2.23%), and Wipro (-1.28%). On the BSE Sensex, the biggest losers included Infosys (-6.69%), TCS (-3.53%), HCLTech (-2.74%), Tech Mahindra (-2.45%), and HDFC Bank (-2.32%).
Top Gainers
Despite the overall decline, some stocks managed to gain. On the Nifty50, the top gainers were Eternal (+2.05%), Bharti Airtel (+1.71%), Power Grid (+1.35%), Nestle India (+1.22%), and NTPC (+1.05%). On the BSE Sensex, top gainers included Eternal (+2.21%), Bharti Airtel (+1.80%), Power Grid (+1.32%), NTPC (+1.08%), and Titan (+0.84%).
Geopolitical Concerns
Adding to investor caution, uncertainty resurfaced over the US-Iran peace process after US Vice President J D Vance postponed his planned visit to Switzerland for talks with Iranian negotiators. The White House cited logistical issues for the deferment. The discussions were aimed at finalising technical aspects of the Memorandum of Understanding (MoU) signed between the US and Iran and were scheduled to take place on Friday.
"Indian equity markets retreated after five consecutive sessions of gains, as investors booked profits amid renewed geopolitical uncertainty and sharp selling in IT stocks. Sentiment weakened following Accenture's cautious earnings outlook, while the postponement of scheduled US–Iran negotiations undermined expectations of a smooth progression in the broader peace process," said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
Corporate Developments
In corporate news, Reliance Industries announced that the board of Jio Platforms Ltd approved the filing of draft papers for an initial public offering involving a fresh issue of up to 27 crore equity shares. Addressing Reliance's 49th annual general meeting, chairman and managing director Mukesh Ambani said the draft red herring prospectus (DRHP) would be filed with Sebi on Friday.
Global Markets
Brent crude, the global oil benchmark, fell 0.58% to USD 79.39 per barrel. Among Asian markets, South Korea's Kospi ended marginally lower, while Japan's Nikkei 225 closed higher. Markets in Shanghai and Hong Kong remained shut for holidays. European markets were trading mostly higher, while US markets ended in positive territory on Thursday.
Foreign institutional investors (FIIs) sold equities worth Rs 1,025.20 crore on Thursday, according to exchange data.
