Sensex Drops over 750 Points, Nifty Slides Below 24,400 as IT Stocks Tumble

Mumbai, April 22:Markets ended sharply lower on Wednesday as equity benchmarks snapped a three-session winning streak amid a meltdown in IT stocks even as crude oil prices and global cues worsened sentiment.

The BSE Sensex fell over 750 points to 78,516, while the Nifty 50 closed almost 200 points lower at 24,378, with both theindices flashing fear throughout the session.

IT Stocks Lead the Slide

Huge selling in the IT pack caused the decline among benchmark indices as Nifty IT index fell around four percent and tech titans Infosys, HCLTech and Tech Mahindra saw stock carnage as the outlook turned cautious after their earnings, highlighting concerns about slowing demand in key global markets.

To be sure, IT stocks carry significant weight in benchmark indices which led to the meltdown in the markets as participants observed that the selloff signalled disappointment around both earnings and future growth expectations.

Profit Booking After Recent Rally

Markets also saw profit booking after a strong run in the previous sessions. In the absence of fresh positive triggers, investors chose to lock in gains, especially in large-cap stocks. Biggest losers on the Nifty were HCL Technologies, Tech Mahindra, Infosys, TCS, and M&M, while gainers included Tata Consumer Products, Hindustan Unilever, Tata Motors Passenger Vehicles, NTPC, and Hindalco Industries.

Among sectors, IT index shed nearly 4%,the private bank index fell 0.7%, while oil & gas, FMCG, media, metal, and realty added 0.5% each.

Oil Prices, Global Cues Add Pressure

Rising crude oil prices remained a key overhang. With oil hovering near the $100-per-barrel mark amid ongoing geopolitical tensions in West Asia, concerns around inflation and India’s current account deficit resurfaced. As a major oil importer, India’s macro outlook tends to be sensitive to sustained spikes in crude prices.

Global cues were also unsupportive. Asian markets traded mixed, while US equities had ended lower overnight, keeping risk appetite subdued.

Broader Market Shows Resilience

Despite the headline decline, the broader market displayed relative resilience. Midcap and smallcap stocks outperformed the benchmarks, indicating selective buying interest and a degree of underlying strength in domestic-focused segments.

Volatility edged higher during the session, reflecting increased nervousness among traders, though markets did attempt a mild recovery from intraday lows on hopes of easing geopolitical tensions.

Outlook

The day’s decline highlights the fragile nature of the recent rally, with global factors once again taking centre stage. While domestic fundamentals remain supportive, external variables such as crude oil prices, currency movement, and geopolitical developments continue to drive near-term sentiment.

Going ahead, markets are likely to remain range-bound and headline-driven, with earnings announcements and global cues dictating direction. Investors may stay cautious in the near term, even as stock-specific opportunities continue to emerge amid the ongoing results season.

Source:

• https://www.nseindia.com/
• https://www.bseindia.com/