Indian equity benchmarks closed lower on Thursday, led by heavy selling in technology stocks, with the BSE Sensex down 553.12 points and the NSE Nifty down 135.50 points on weak global cues and monthly expiry of derivatives.
The 30-share BSE Sensex ended at 79,389.06, down 0.69 per cent, while the broader NSE Nifty closed at 24,205.35, down 0.56 per cent. The decline in Indian markets echoed global trends as investors digested warnings from tech giants Meta Platforms and Microsoft about rising AI costs.
IT stocks led the market decline, with the sector’s majors posting significant losses. HCL Technologies emerged as the biggest loser, down 3.61 per cent, followed by Tech Mahindra (-3.58 per cent), TCS (-2.68 per cent) and Infosys (-2.17 per cent). Asian Paints also joined the losers list, declining 2.35 percent.
However, some stocks bucked the trend, with Cipla leading the gainers, up 9.50 percent. Other notable gainers included Larsen & Toubro (6.23 percent), ONGC (2.04 percent), Dr. Reddy’s Laboratories (1.93 percent) and Mahindra & Mahindra (1.61 percent).
L&T led among the Sensex stocks, rising 6.38 per cent to ₹3,624.40, followed by Power Grid (+0.86 per cent) and JSW Steel (+0.76 per cent). Mahindra & Mahindra also rose 0.71 percent, while HDFC Bank was flat. Among the losers, Tech Mahindra saw the biggest decline at 4.54 per cent, followed by HCL Tech (-3.89 per cent) and TCS (-2.80 per cent). Infosys and Asian Paints also fell 2.48 percent and 1.97 percent respectively.
The broader market showed mixed trends with NIFTY MIDCAP SELECT down 0.84 per cent to 12,343.15, while small-cap stocks showed resilience. Market breadth remained positive with 2,652 stocks rising against 1,264 declines on the BSE. Notably, 167 stocks hit their 52-week high, while 23 hit their 52-week low.
“Major benchmark indices traded mild declines amid a broader sell-off in the technology sector due to weakness in US IT companies, leaving domestic IT companies in the shadow of underperformance,” Vinod said Nair, head of the company. of research at Geojit Financial Services. He added: “Investors remain cautious due to weak domestic earnings in the second quarter. However, the market expects momentum to reverse in the second half of the year due to a recovery in core sector data and government spending.”
The banking sector also faced pressure with the Nifty Bank index falling 0.64 percent to close at 51,475.35. The NIFTY FINANCIAL SERVICES index fell 0.63 percent to close at 23,886.55.
Deepak Jasani, Head of Retail Research at HDFC Securities, noted, “The volumes in the cash market have remained stable over the past few days, indicating no strong conviction among participants.” He identified the Nifty’s support level at 23,893, with resistance in the 24,492-24,567 range in the near term.
The market’s performance took place against the backdrop of stable trading volumes and the looming US elections next Tuesday. The India VIX, a volatility indicator, settled at 15.57, up 0.35 percent, indicating relatively stable market conditions despite the day’s decline.
FIIs/FPIs showed strong selling posture in the capital market segment, with significant net outflows of ₹4,613.65 crore. DIIs maintained positive momentum and recorded significant net inflows of ₹4,518.28 crore. Among other investor categories, customers showed positive net inflows of ₹175.35 crore, while NRIs recorded a small inflow of ₹0.80 crore. Proprietary traders contributed with a net inflow of ₹288.34 crore.
Technical analysts observed the formation of a red candle on the daily chart of Nifty, indicating potential weakness. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., pointed out that “Nifty has consolidated between 24,000 and 24,500 in the last few sessions. A breakout on either side of this range could determine the next direction.”
