Synopsis : Indian equity benchmarks fell sharply as heavy selling in IT stocks dented sentiment, pushing Sensex down over 350 points and Nifty below 25,900. Strong U.S. jobs data reduced hopes of near-term Fed rate cuts, adding to global caution.
Indian stock markets traded on a weak footing on Thursday, with benchmark indices Sensex and Nifty extending losses as a sharp selloff in information technology (IT) stocks triggered broad-based risk aversion. The pressure in tech counters erased significant market value, sending shockwaves across Dalal Street.
At the heart of the decline was heavy selling in frontline IT names such as TCS, Infosys and other sector heavyweights, which reportedly wiped out nearly Rs 1.3 lakh crore in market capitalisation, with several stocks sliding as much as 5%. The sector came under pressure after stronger-than-expected U.S. jobs data for January dampened expectations of early interest rate cuts by the U.S. Federal Reserve, raising concerns over demand visibility for global tech services.
Sectoral trends reflected a defensive market tone, with technology and media stocks facing the brunt of selling. However, pockets of resilience were visible in FMCG, metals, banking and financial services, where selective buying helped limit deeper losses. Analysts noted that investors are increasingly favouring stability-oriented sectors while rotating away from high-beta growth stocks.
Broader market participation remained cautious, as uncertainty around global monetary policy and valuation concerns continue to influence positioning. Market participants are adopting a stock-specific approach, focusing on companies with strong balance sheets and earnings visibility.
Globally, markets offered mixed cues. S&P 500 futures were marginally higher, while Japan’s Topix and Australia’s S&P/ASX 200 traded in the green. Hong Kong’s Hang Seng slipped, and Chinese equities remained largely unchanged. The mixed global backdrop reinforced cautious sentiment in domestic equities.
Going ahead, investors will closely track U.S. inflation data, central bank commentary, and upcoming corporate earnings for further cues on market direction.
Disclaimer : This article is for informational purposes only and does not constitute financial or investment advice. Readers are advised to consult a qualified financial advisor before making any investment decisions.
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