The BSE Sensex snapped its five-day winning streak on Friday, plunging over 600 points as IT stocks took a hit and renewed geopolitical uncertainty weighed on investor sentiment.
Market Performance
The 30-share benchmark dropped 607.08 points, or 0.78 percent, to close at 76,802.90. During intraday trade, it tanked 940.26 points, or 1.21 percent, to touch a low of 76,469.72. The broader Nifty 50 index also declined, falling 182.45 points, or 0.77 percent, to end at 23,352.50.
Key Drags
IT stocks were the major losers, with heavyweights like Infosys, TCS, and Wipro declining between 2 percent and 3 percent. The sell-off was triggered by concerns over slowing global demand and a stronger rupee. Renewed geopolitical tensions in the Middle East further dampened risk appetite, leading to broad-based selling.
Sectoral Impact
All major sectoral indices ended in the red, with the IT index falling the most, down 2.5 percent. Banking stocks also faced pressure, with HDFC Bank and ICICI Bank slipping over 1 percent each. The metal and auto indices also declined, while pharma and FMCG stocks saw marginal losses.
Market Sentiment
Analysts attributed the sharp fall to profit-booking after the recent rally, combined with negative global cues. The US Federal Reserve's hawkish stance and rising oil prices added to the uncertainty. The volatility index, India VIX, surged 8 percent, indicating heightened fear among traders.
Despite today's decline, the market had gained over 3 percent in the previous five sessions, driven by strong foreign inflows and optimism over domestic economic growth. However, the sudden reversal highlights the fragility of the current rally amid global headwinds.
