IT Stocks Lead Indian Equity Markets Into the Red Zone

On Thursday, the Indian equity markets closed on a lower note influenced by declines in IT stocks. The BSE Sensex slid 345.80 points, closing at 83,190.28, while NSE's Nifty 50 fell by 120.85 points, hitting 25,355.25 amidst selling pressure at advanced levels.

Sectoral performance revealed Nifty Realty and Nifty Metal indices as standout performers due to selected buying, whereas Nifty FMCG and Nifty PSU Bank recorded declines due to profit-taking. Both Nifty Midcap 100 and Nifty Smallcap 100 also concluded in negative territory, mirroring the prevalent market caution.

IndusInd Bank and Maruti Suzuki offered some stability within the Nifty 50, offsetting broader sluggish trends slightly, while Bharti Airtel and Asian Paints were significant contributors to the market dip. Anticipation surrounding Tata Consultancy Services' quarterly results and the potential US trade deal contributed to market volatility.

Market experts underscore continued volatility due to trade agreements and the financial results season's start. Vinod Nair from Geojit Investments highlighted investor caution, especially concerning IT and finance sectors' performance. The day saw narrow trading ranges as investors awaited clarity on international trade and tariffs, according to VLA Ambala from Stock Market Today.

Technically, a bearish candle formation on the daily chart suggests a failed breakout attempt, positioning the market near lower levels, as noted by Nagaraj Shetti from HDFC Securities. The ongoing consolidation sees Nifty maintaining its position above key moving averages, though Sudeep Shah from SBI Securities noted declining momentum.

Shrikant Chouhan of Kotak Securities pointed out persistent selling pressure after a muted market opening, suggesting potential further declines if key support levels are breached, potentially driving Nifty down to 25,200-82,700.