Sensex falls 183 points, Nifty slips as IT stocks drag market lower

The BSE Sensex fell 183.15 points, or 0.24%, to 77,472.94, while the Nifty 50 declined 126.80 points, or 0.52%, to 24,207.75. The Sensex had opened at 77,892.10 and touched an intraday high of 77,986.84 before giving up gains. The Nifty also slipped from its opening level of 24,341.95.

In Short

• Early gains faded despite support from private banks and metal shares
• Investors stayed cautious before US Core PCE inflation data release
• Infosys, Bharti Airtel and Tech Mahindra were among major losers

Benchmark indices ended lower on Wednesday, giving up their early gains as heavy selling in IT stocks offset strength in banks and metal shares. The market also remained cautious ahead of the US Core PCE inflation data, which could offer fresh clues on the Federal Reserve’s interest-rate trajectory.

The BSE Sensex fell 183.15 points, or 0.24%, to 77,472.94, while the Nifty 50 declined 126.80 points, or 0.52%, to 24,207.75. The Sensex had opened at 77,892.10 and touched an intraday high of 77,986.84 before giving up gains. The Nifty also slipped from its opening level of 24,341.95.

“Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realisation prospects,” said Vinod Nair, Head of Research, Geojit Investments Limited.

“However, these gains were largely offset by weakness in IT stocks after the US paused visa appointments amid an immigration crackdown which rekindled margin pressure concerns.”

IT STOCKS DRAG, BANKING AND METALS GAIN

The sectoral picture was mixed. Nifty IT was the biggest drag, falling 1.47%, while Nifty FMCG declined 0.95%, Nifty Consumer Durables fell 0.93%, Nifty Auto lost 0.74% and Nifty Oil & Gas slipped 0.58%.

On the other hand, Nifty Metal gained 1.27%, Nifty Private Bank rose 1.04% and Nifty PSU Bank advanced 0.77%. Nifty Financial Services 25/50 added 0.30%, while Nifty Pharma gained 0.23%.

Nifty Media rose 0.06%, Nifty Financial Services ex-Bank added 0.09%, Nifty MidSmall Financial Services gained 0.23% and Nifty MidSmall Healthcare advanced 0.43%.

INFOSYS, BHARTI AIRTEL LEAD NIFTY LOSERS

Infosys was the biggest Nifty 50 loser, falling 1.94%. Bharti Airtel declined 1.91%, Larsen & Toubro fell 1.76%, Power Grid dropped 1.48%, Tech Mahindra declined 1.38% and NTPC lost 1.29%.

M&M fell 1.18%, Reliance Industries declined 1.04%, BEL and HCLTech both slipped 0.91%, while TCS fell 0.87%.

At the other end, Kotak Mahindra Bank was the top Nifty gainer, rising 3.53%. UltraTech Cement gained 1.87%, Axis Bank advanced 1.33%, Tata Steel rose 1.10% and Bajaj Finserv added 0.70%.

The broader market remained mixed. Nifty 100 fell 0.43%, Nifty 200 declined 0.36% and Nifty 500 lost 0.22%. The Nifty Midcap 50 and Nifty Midcap 100 fell 0.17% and 0.10%, respectively.

The Nifty Smallcap 100, however, gained 0.81%. India VIX fell 5.86% to 10.43.

Oil prices extended their decline. WTI crude fell 2.70% to $80.14 a barrel, while Brent crude dropped 2.99% to $85.93.

Nair said investors are now looking towards the US Core PCE data for greater clarity on the interest-rate outlook. “A contained core reading would indicate that the recent energy-led inflation spike is transitory, easing rate concerns and supporting flows into emerging markets,” he said.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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