Selloff in IT stocks; Sensex down 600 points
Stock market benchmark indices ended lower on Friday, snapping a five-day rally, with the Sensex declining 607 points and the Nifty falling to the 24,013.10 level, dragged by heavy selling in IT firms after global tech giant Accenture trimmed its full-year revenue growth guidance. Renewed geopolitical uncertainty over postponement of talks to finalise US-Iran peace deal in Switzerland also dampened investor sentiment. The 30-share BSE Sensex dropped 607.08 points, or 0.78 per cent, to settle at 76,802.90. During the day, it tanked 940.26 points, or 1.21 per cent, to 76,469.72. The 50-share NSE Nifty declined 154.90 points, or 0.64 per cent, to end at 24,013.10. The Sensex had jumped 3,577.43 points, or 4.84 per cent, in the last five trading sessions, and the Nifty climbed 1,006.4 points, or 4.34 per cent. Among the 30-share Sensex constituents, IT firms were the major losers. The BSE IT index dropped 3.57 per cent. Infosys dived 6.69 per cent, Tata Consultancy Services dropped 3.53 per cent, HCL Tech 2.74 per cent, and Tech Mahindra ended 2.45 per cent lower. HDFC Bank, Mahindra & Mahindra, Reliance Industries and Hindustan Unilever were also among the laggards. However, Eternal, Bharti Airtel, Power Grid and NTPC were among the winners. US Vice President JD Vance has postponed his visit to Switzerland to meet Iranian negotiators, with the White House citing logistical issues. The negotiations, aimed at resolving the technical aspects of the Memorandum of Understanding (MoU) signed by the US and Iran, were scheduled to take place in Switzerland 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,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
