Sensex Snaps Winning Streak: IT Selloff and Heavyweight Drag Pull Indices Down

The Indian equity markets faced a sharp reversal on Friday as the BSE Sensex and NSE Nifty50 snapped a five-session winning streak. A massive selloff in the technology sector, coupled with weakness in heavyweights like HDFC Bank and Reliance Industries, sent the Sensex tumbling by over 600 points.

Tech Sector Under Pressure Following Accenture's Outlook

The primary driver behind the market's decline was a brutal selloff in IT stocks. The Nifty IT index emerged as the worst-performing sector, plunging more than 6% to reach its weakest level since April 2023. This volatility was triggered by global sentiment shifts after Wall Street giant Accenture revised its FY26 revenue growth forecast downward to 3–4%, from its previous guidance of 3–5%.

The impact on Indian tech giants was immediate and severe. Infosys emerged as the biggest loser, with shares sliding nearly 9%. Other major players also faced heavy selling pressure: Tata Consultancy Services (TCS) dropped 3.53%, HCLTech fell 2.74%, and Tech Mahindra declined by 2.45%. The downturn reflects growing investor anxiety that global corporate clients may be tightening discretionary spending on digital transformation and IT consulting.

Heavyweights HDFC Bank and Reliance Drag the Benchmarks

While the IT sector led the retreat, the indices were further weighed down by major industrial and banking heavyweights. The BSE Sensex ended the session 607.08 points, or 0.78%, lower at 76,802.90, having touched an intraday low of 76,469.72.

HDFC Bank shares fell 2.25% to close at Rs 781. The decline was largely technical, as the stock began trading ex-dividend for a final dividend of Rs 13 per share. Despite the dip, the bank provided some stability by announcing that the RBI has approved a three-month extension for Keki Mistry's tenure as interim part-time chairman.

Similarly, Reliance Industries (RIL) closed at Rs 1,311.50, down 1.25%. The decline comes at a pivotal moment for the conglomerate, as Chairman Mukesh Ambani recently announced that Reliance Jio Platforms will file its draft red herring prospectus (DRHP) with SEBI for an upcoming IPO.

Market Sentiment Amid Geopolitical Concerns

The broad-based weakness was not limited to just a few sectors; Mahindra & Mahindra and Hindustan Unilever also closed in negative territory. Beyond sector-specific news, fresh geopolitical concerns added a layer of caution to the trading floor, preventing the indices from sustaining their recent momentum.

This correction follows a period of significant gains, with the Sensex advancing 4.84% and the Nifty gaining 4.34% over the preceding five trading sessions. Investors are now closely monitoring whether the current selloff is a temporary correction or a sign of deeper structural concerns regarding global IT spending and macroeconomic stability.

Key Takeaways

  • IT Sector Crisis: The Nifty IT index hit its lowest level in over three years, driven by Accenture's lowered growth guidance and fears of reduced global IT spending.
  • Heavyweight Impact: Major index constituents, including HDFC Bank (down 2.25%) and Reliance Industries (down 1.25%), contributed significantly to the Sensex's 607-point drop.
  • End of Rally: The market reversal ended a strong five-day winning streak where the Sensex had gained over 3,500 points.