Sensex Falls 200 Points, Nifty Ends Near 25,000 as IT Stocks Retreat

Stock Market Today: Sensex Slips 200 Points, Nifty Ends Near 25,000 on Pullback in IT Stocks

Introduction

The Indian equity markets took a breather on Friday after a strong run earlier in the week, as a pullback in IT stocks dragged down headline indices. The BSE Sensex declined by 200 points, closing at 82,330.59, while the broader NSE Nifty50 ended 42 points lower at 25,019.80, just shy of the psychological 25,000 mark.

While the frontline indices were under pressure, midcap and smallcap stocks continued to shine, indicating healthy underlying market breadth and rotational interest from investors.

Headline Summary

• Sensex closed at 82,330.59, down 200.15 points or 0.24%.

• Nifty50 ended at 25,019.80, down 42.30 points or 0.17%.

• Nifty IT index fell 0.84%, leading sectoral losses.

• Broader markets outperformed, with BSE MidCap up 0.85% and SmallCap gaining 1.18%.

IT Stocks Lead the Decline

The decline in major indices was largely attributable to the weakness in IT shares. After a decent rally in recent sessions, investors opted to book profits, especially in large-cap tech names. Infosys, TCS, HCL Technologies, and Wipro all ended in the red. The Nifty IT index was the worst-performing sectoral index of the day.

Persistent concerns over US tech spending, slow ramp-ups in deal pipelines, and ongoing macroeconomic uncertainty contributed to the subdued sentiment in the sector. Analysts also pointed to rich valuations in some counters, making them vulnerable to corrections.

Broader Market Shows Strength

Contrary to the subdued performance of blue chips, the broader market was vibrant. The BSE MidCap and SmallCap indices posted healthy gains, buoyed by investor interest in sectors like capital goods, real estate, auto ancillaries, and PSU stocks.

Many midcap names witnessed buying interest after strong earnings guidance and management commentary. Investors seem to be rotating their allocations into fundamentally sound, under-owned stocks in non-IT spaces.

Sectoral Performance Snapshot

Sectors like realty, auto, and capital goods continued to show strength on hopes of sustained domestic demand. The real estate index rose more than 1%, driven by positive reports of pre-monsoon housing activity picking up in metro cities.

Key Gainers and Losers

Top Gainers on Nifty50:

• Grasim Industries (+3.5%)

• Eicher Motors (+2.7%)

• NTPC (+2.4%)

• Hero MotoCorp (+2.2%)

• Hindalco (+2.1%)

Top Losers on Nifty50:

• Infosys (-1.8%)

• TCS (-1.6%)

• HDFC Life (-1.3%)

• Britannia (-1.1%)

• Axis Bank (-1.0%)

Investors appeared to be moving out of defensives and into rate-sensitive and cyclical stocks ahead of the next batch of corporate earnings and macroeconomic data.

Global Market Cues

Global markets presented a mixed picture. While Wall Street posted modest gains overnight, Asian markets like the Nikkei and Hang Seng ended flat to slightly negative. European indices were marginally higher in early trade.

Traders across the globe are eyeing upcoming US inflation data and fresh cues from central banks on interest rate trajectories. Dollar index fluctuations and crude oil volatility also remain key macro triggers.

Market Sentiment & Technical Indicators

Market breadth on the NSE was positive, with over 1,200 stocks advancing versus 825 declining. The India VIX, a measure of market volatility, rose marginally by 2.1% to 11.45.

From a technical standpoint, the Nifty's support zone lies near 24,900-24,850, while immediate resistance is seen around 25,150. Analysts suggest a brief consolidation could follow before the index attempts to scale new highs again.

The short-term trend remains bullish as long as key moving averages are held. However, some correction in overheated sectors like IT was expected and may continue until earnings growth visibility improves.

Institutional Activity

Foreign Institutional Investors (FIIs) were net sellers in equities for the second day in a row, offloading shares worth ₹540 crore, according to provisional data. Domestic Institutional Investors (DIIs), however, turned net buyers to the tune of ₹620 crore, continuing their trend of supporting the market on dips.

This tug-of-war between FIIs and DIIs is likely to determine near-term direction, especially in heavyweight stocks.

Expert Opinions

Ritesh Mehta, Equity Strategist:
“Today’s fall is a case of sector rotation. IT has had a good run lately and was due for a pause. Money is moving into infra, capital goods, and domestic consumption themes, which are likely to outperform going forward.”

Shraddha Patel, Technical Analyst:
“While the dip in Sensex and Nifty might look concerning, the fact that midcaps and smallcaps are holding up is a big positive. Market leadership is broad-based, and that typically signals sustainable strength.”

Today’s market action was a reminder that even in strong uptrends, periodic pullbacks are both natural and healthy. The weakness in IT stocks weighed on benchmark indices, but the underlying bullish tone in broader markets indicates that investor appetite remains robust.

Market participants should brace for some volatility ahead, particularly from global cues, but long-term trends in Indian equities remain constructive. Stock selection and sectoral rotation will be key to navigating the next phase of the rally.