The BSE Sensex closed 607.08 points, or 0.78% lower at 76,802.90, while the NSE Nifty50 declined 154.90 points, or 0.64% to settle at 24,013.10 on Friday. According to latest reports, India VIX rose only 0.79% by the close, significantly lower than the earlier session high of 13.64, indicating that investor nervousness eased towards the end of trading. The market decline was primarily driven by a broad-based selloff in technology stocks, with the Nifty IT index ending 3.65% lower and the BSE IT index declining 3.57%, making technology the worst-performing sector of the day. This marked the end of a five-session winning streak for the benchmark indices, which had previously gained up to 5% over the past five sessions.
The NIFTY IT index ended 3.65% lower, with Infosys emerging as the biggest drag on the Nifty50, plunging 6.75% after a sharp decline in ADRs overnight following Accenture's softer revenue outlook. Tata Consultancy Services fell 3.55%, Tech Mahindra lost 2.63%, and HCL Technologies declined 2.59%. The sharp plunge in IT stocks was primarily driven by overnight carnage in Accenture Plc, which tumbled 17% after it released its quarterly earnings and guidance. HDFC Bank also came under pressure, slipping 2.40%, adding to the technology sector's decline. The sector faces continued pressure from slowing global demand, AI disruption concerns, and geopolitical uncertainty, with analysts warning that hopes of near-term growth recovery may fade despite stable order books.
Despite the frontline indices' decline, broader markets ended in positive territory with the Nifty Midcap 100 gaining 0.22% and the Nifty Smallcap 100 rising 0.42%. Market breadth improved significantly by the close, with 2,137 stocks advancing against 1,905 declines on the NSE. Defensive and utility-oriented sectors outperformed during the session, with the Nifty Pharma index gaining 0.73% and the BSE Healthcare index rising 0.76%. Telecom stocks remained strong with the BSE Telecom index climbing 1.59%, while the BSE Capital Goods and BSE Power indices advanced 1.11% and 1.02% respectively. In contrast, the Nifty Realty index declined 1.01% and the Nifty Oil & Gas index slipped 1.18%. Financials, banks, realty and consumption sectors also traded lower, while defensive pockets offered support.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Friday's decline was largely a corrective move after the recent rally. He noted that the resistance zone around 24,150 continues to remain a hurdle for the market, but expects the Nifty to attempt a move above 24,150 again in the short term, while immediate support is placed around 23,800. The Indian rupee settled at 94.56 against the US dollar, with Dilip Parmar, Research Analyst at HDFC Securities, noting that the rupee continues to outperform many Asian peers, supported by improving capital flows and softer crude oil prices. He expects the currency to move towards the 94 level if dollar inflows remain strong.
