Benchmark stock market indices faced a steep decline on Friday, extending their losses throughout the week. The sharp drop was fueled by weak global cues, persistent selling by foreign institutional investors (FIIs), and a notable slide in information technology (IT) stocks.
The S&P BSE Sensex ended the session 1,176.46 points lower at 78,041.59, while the NSE Nifty50 fell by 364.20 points to close at 23,587.50. Among sectoral indices, the Nifty IT index was the hardest hit, plummeting nearly 2.7%, as major IT stocks like Infosys, HCLTech, Wipro, and TCS saw declines in the range of 1.5% to 2%. Other sectoral indices, including Nifty Bank and Nifty Financial Services, also recorded sharp losses.
On the Nifty50, the top five losers included Tech Mahindra, Axis Bank, IndusInd Bank, M&M, and Trent. In contrast, the top gainers of the day were Dr Reddy’s, JSW Steel, ICICI Bank, Nestle India, and HDFC Life.
The broader weakness in Asian markets, prompted by the US Federal Reserve’s downward revision of its 2025 interest rate-cut forecast, added further pressure on domestic stocks. The Fed’s decision to scale back its rate-cut expectations dampened market sentiment globally, especially among IT stocks, which are highly exposed to US clients.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The negative reaction to the Fed’s commentary is temporary.” He further stated that quality large-cap stocks are likely to rebound soon, presenting a buying opportunity for retail investors.
While market volatility may continue in the short term due to global uncertainties and ongoing FII selling, analysts believe that a recovery driven by large-cap stocks is possible in the coming days, offering potential for investors to capitalize on dips.
