Dragged by IT stocks, Indian markets snap six-day rising streak

Global stocks were mixed Friday, as the tech sell-off on Wall Street sent jitters through the market while investors prepared for key central banks to announce their latest policy decisions next week.

Except for public sector banks and automobiles, all sectors ended in the red. IT, consumer durables and FMCG sectors were the major laggards. (File image)

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Domestic stock markets snapped their six-day record rally on Friday after heavy selling in IT companies including Infosys Ltd, which slashed its revenue growth guidance for FY24 a day earlier.

The 30-share Sensex fell 887.64 points, or 1.31 per cent, to close at 66,684.26. The index tanked 1,038 points during intraday trading.

The broader Nifty finished at 19,745, down 1.17 per cent or 234.15 points.

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Global stocks were mixed Friday, as the tech sell-off on Wall Street sent jitters through the market while investors prepared for key central banks to announce their latest policy decisions next week.

“Domestic equities took a pause just before the 20,000 zones. Nifty opened lower, dragged by selling in IT heavyweights after Infosys lowered its FY24 growth guidance. Broader markets were mixed with the Nifty midcap 100 down 0.4 per cent while the Nifty smallcap 100 was up 0.7 per cent,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd.

Except for public sector banks and automobiles, all sectors ended in the red. IT, consumer durables and FMCG sectors were the major laggards.

In its first quarter results announced on Thursday, Infosys Ltd lowered its guidance on revenue growth to 1-3.5 per cent for FY24 from an earlier guidance of 4-7 per cent.

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Infosys Ltd closed 8.18 per cent down at Rs 1,330.40 apiece on the BSE. Hindustan Unilever Ltd fell 3.65 per cent to close at Rs 2,603.8 per share and Reliance Industries Ltd closed at Rs 2,536.20, down 2.57 per cent.

Among the Nifty 50 companies, Larsen & Toubro, ONGC, NTPC, State Bank of India and Tata Motors were the top gainers. Top losers included Infosys, HCL Technologies, Wipro and TCS.

“The Nifty could stay in the 19,524-19,854 band for the near term. A move below 19,524 could confirm the formation of a top at the weekly high of 19,992,” said Deepak Jasani, Head of Retail
Research at HDFC Securities.

Foreign portfolio investors bought Rs 3,370.90 crore of domestic equities on a net basis on Friday, provisional BSE data showed.

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With the result season picking up pace, a lot of stock specific action is expected, which will provide direction to domestic equities in the coming week, Khemka said.

Markets will also take cues from the US Federal Reserve and European Central Bank (ECB) policy meetings scheduled for next week.