The Indian benchmark indices crashed on Friday as the Sensex declined over 961 points to settle at 81,287.19 and the Nifty tumbled more than 317 points to close at 25,178.
Previously, during the early morning the BSE Sensex started the session near 82,050, falling close to 200 points, while the NSE Nifty50 opened trading around 25,400, taking a hit of nearly 100 points, as of 9:15 AM.
IT Stocks Show Strength Despite Global Tech Weakness
Indian IT stocks displayed resilience even as global technology shares came under pressure following weaker-than-expected earnings from Nvidia, which dampened sentiment on Wall Street.
Among Sensex constituents, Infosys, Tech Mahindra, HCL Tech, TCS, and Eternal were among the early gainers. In contrast, Maruti, IndiGo, M&M, Airtel, and HUL were among the laggards during the opening hour.
In the broader market, the Nifty Financial Services index declined 0.36 per cent. Sector-wise, the IT and Midsmall IT & Telecom indices advanced 1.61 per cent and 1 per cent respectively, while the FMCG and Chemical indices fell 0.60 per cent and 0.57 per cent.
During the pre-open session at around 9:11 AM, the Sensex stood at 82,220.48, down 28.13 points or 0.03 per cent. The Nifty was at 25,459.85, lower by 36.70 points or 0.14 per cent, signalling a marginally weak opening.
Oil Price Swings, AI Concerns Weigh on Outlook
Analysts said volatility in crude oil prices, driven by ongoing tensions in the Middle East, could keep investors cautious in the near term.
They also noted that broader global weakness in technology stocks may continue to affect Indian IT shares, which have already corrected by more than 20 per cent in February amid growing concerns over AI-led disruption to traditional business models.
Mixed Signals From Global Markets
Asian markets showed mixed trends. China’s Shanghai index fell 0.17 per cent and Shenzhen declined 0.68 per cent. Japan’s Nikkei slipped 0.24 per cent, while Hong Kong’s Hang Seng rose 0.67 per cent. South Korea’s Kospi was down 0.77 per cent.
US markets mostly ended lower overnight. The Nasdaq dropped 1.18 per cent, the S&P 500 declined 0.54 per cent, while the Dow Jones edged up 0.03 per cent.
On the institutional front, Foreign Institutional Investors (FIIs) were net sellers on February 26, offloading equities worth Rs 3,466 crore. Domestic Institutional Investors (DIIs), however, provided support by purchasing equities worth Rs 5,032 crore.
Benchmarks End Flat After Volatile Session
Benchmark indices ended largely unchanged on Thursday after a volatile trading session. The Sensex fell 27.46 points, or 0.03 per cent, to close at 82,248.61. During the day, it moved between a high of 82,579.16 and a low of 81,970.47, reflecting a swing of 608.69 points.
The Nifty edged up 14.05 points, or 0.06 per cent, to settle at 25,496.55, indicating a balance between buying and selling activity.
Market participants said initial optimism faded as investors chose to book profits at higher levels rather than extend positions ahead of key domestic and global developments.
“The domestic market surrendered its early gains amid mixed global cues and increased caution ahead of the US–Iran nuclear talks, as well as key data releases including US initial jobless claims and India’s GDP print, which triggered profit-booking,” said Vinod Nair, Head of Research at Geojit Investments Limited.
Ponmudi R, CEO of Enrich Money, said that although global cues from technology and metal stocks initially supported sentiment, investors preferred to reduce exposure at elevated levels instead of chasing further gains.
