Sensex, Nifty Close Lower as IT Stocks Slide
Mumbai — Indian benchmark indexes ended lower Friday as information technology shares fell sharply after global consulting company Accenture issued a weak sales and revenue outlook.
The 30-share Sensex dropped 608 points, or 0.78%, to close at 76,802.90. The Nifty 50 declined 155 points, or 0.64%, to settle at 24,013.10.
Analysts said the 24,100-to-24,200 range remains the immediate resistance zone for the Nifty.
“A sustained breakout above this band would strengthen bullish momentum and could pave the way for an advance towards the 24,400 region, which remains the next significant resistance area,” an analyst said.
On the downside, 23,900 remains a key support level.
“Holding above this zone will be essential to preserve the broader recovery structure and maintain the positive undertone,” the analyst said.
Infosys, Tata Consultancy Services, Tech Mahindra, HCL Technologies and Mahindra & Mahindra were among the biggest losers on the Nifty.
Infosys also led the decline on the Sensex, followed by TCS, HCL Technologies, Tech Mahindra, HDFC Bank and Mahindra & Mahindra.
The broader market bucked the downward trend. The Nifty Midcap index gained 0.22%, while the Nifty Smallcap index rose 0.42%.
Among sectors, the Nifty IT index recorded the steepest decline. Realty, auto and oil and gas shares also underperformed, while the pharmaceutical index posted the strongest gains.
“Going forward, investors will closely monitor FII flows, monsoon progress, crude oil prices and management commentary from key corporates, particularly Reliance Industries’ AGM, for further market direction,” the analyst said.
The rupee strengthened by about 7 paise to trade near 94.31 against the U.S. dollar, supported by the recent decline in crude oil prices.
“Technically, the rupee is expected to trade within a range of 93.90–94.65, with the current positive trend keeping the possibility open for a test of the 94.00 level in the near term,” the analyst said. (Source: IANS)
