Sensex Snaps Winning Streak: IT Selloff and Heavyweight Drags Pull Markets Down

The Indian equity markets faced a sharp reversal on Friday, breaking a five-session winning streak as a massive selloff in technology stocks and cautious geopolitical sentiment weighed heavily on investors. While the Nifty50 managed to hold above the psychological 24,000 mark, the BSE Sensex saw a significant plunge, erasing much of the recent momentum.

Major Indices Retreat Amidst Heavy Selling

The BSE Sensex ended the session 607.08 points, or 0.78%, lower, closing at 76,802.90. The volatility was intense throughout the day, with the index touching an intraday low of 76,469.72—a drop of over 940 points. Meanwhile, the NSE Nifty50 settled at 24,013.10, marking a decline of 154.90 points, or 0.64%.

This correction follows a remarkably strong week where the Sensex had advanced by 4.84% (3,577.43 points) and the Nifty had gained 4.34% (1,006.4 points) over the preceding five trading sessions.

Technology Sector Crashes on Accenture's Weak Outlook

The primary driver of the market downturn was a brutal selloff in the IT sector. The Nifty IT index tumbled by 3.57%, hitting its lowest level since April 2023. The carnage was triggered by a global ripple effect after Wall Street giant Accenture revised its FY26 revenue growth forecast downward to 3-4%, missing analyst expectations.

The impact on Indian IT majors was profound:

  • Infosys: The biggest loser, sliding 6.69% (with intraday drops as high as 9%).
  • TCS: Dropped 3.53%.
  • HCLTech: Fell 2.74%.
  • Tech Mahindra: Ended 2.45% lower.

Investors fear that Accenture's cautious stance signals a broader slowdown in discretionary spending on digital transformation by global clients, a critical revenue driver for Indian tech firms.

HDFC Bank and Reliance Industries Drag Benchmarks

The decline was not limited to the technology sector; heavyweights in the banking and energy sectors also weighed on the indices.

HDFC Bank shares fell 2.25% to close at Rs 781. The drop was primarily due to the stock trading ex-dividend following a final dividend announcement of Rs 13 per share. Additionally, the bank saw positive news as the RBI approved a three-month extension for Keki Mistry's tenure as interim part-time chairman.

Reliance Industries (RIL) also faced selling pressure, closing at Rs 1,311.50, down 1.25%. The company's movement comes amid significant developments at its 49th AGM, where Chairman Mukesh Ambani announced the upcoming filing of the draft red herring prospectus (DRHP) for the Reliance Jio Platforms IPO.

Key Takeaways

  • End of Rally: The five-day winning streak for Indian markets ended, driven by a 0.78% drop in the Sensex and a 0.64% drop in the Nifty50.
  • IT Sector Vulnerability: Concerns over global IT spending surged after Accenture's weak guidance, pushing the Nifty IT index to its lowest levels in over three years.
  • Heavyweight Pressure: Beyond tech, major contributors to the decline included HDFC Bank (dividend adjustment) and Reliance Industries (market reaction to corporate updates).