𝗕𝗦𝗘 𝗦𝗲𝗻𝘀𝗲𝘅 𝗗𝗿𝗼𝗽𝘀 𝟴𝟬𝟬 𝗣𝗼𝗶𝗻𝘁𝘀 𝗔𝘀 𝗡𝗶𝗳𝘁𝘆𝟱𝟬 𝗙𝗮𝗹𝗹𝘀 𝗕𝗲𝗹𝗼𝘄 𝟮𝟰,𝟬𝟬𝟬
Indian equity benchmarks ended a five day winning streak on Friday. The BSE Sensex and Nifty50 declined due to heavy selling in the IT sector and weak global signals.
Key Market Data:
- The Nifty IT index fell near 6%.
- India VIX rose 5% to 13.30.
- Foreign institutional investors sold equities worth Rs 1,025 crore.
- Large IT firms including Infosys, TCS, Tech Mahindra, and HCLTech fell by as much as 8%.
Reasons for the Market Decline:
- IT Sector Weakness: Shares of global consulting firm Accenture fell on Wall Street after the company lowered its FY26 revenue growth forecast. This raised concerns about business spending on digital transformation.
- Foreign Selling: Foreign institutional investors turned from buyers to sellers.
- Profit Taking: Investors sold stocks to lock in gains after the Sensex rose nearly 5% over the last five sessions.
- Global Market Signals: Asian markets including South Korea's Kospi and Hong Kong's Hang Seng dropped near 2%. US Dow Jones futures also traded in negative territory.
- Geopolitical Tensions: Unresolved concerns in the Middle East continue to affect investor sentiment despite recent peace agreements.