benchmark indices ended lower on Friday, snapping a five-session winning streak, as a sharp selloff in information technology stocks following Accenture’s weak outlook overshadowed supportive factors such as lower crude oil prices, a stable rupee and improving market sentiment.
The S&P BSE fell 607.08 points, or 0.78%, to close at 76,802.90, while the NSE Nifty50 shed 155.05 points, or 0.64%, to settle at 24,013.10.
Despite Friday’s decline, both benchmark indices gained around 1.7% for the week after a strong rally driven by easing geopolitical tensions and falling crude oil prices.
The biggest drag on the market was the IT sector after Accenture’s earnings commentary raised concerns over demand visibility and discretionary technology spending.
The Nifty IT index plunged 3.65%, making it the worst-performing sectoral index.
Among the biggest losers were Infosys, which dropped 6.69%, TCS (-3.53%), HCLTech (-2.74%), Tech Mahindra (-2.47%) and HDFC Bank (-2.32%). M&M also fell 2.11%.
Analysts believe Accenture’s cautious outlook has raised concerns about the pace of recovery in global technology spending, prompting investors to cut exposure to Indian IT stocks.
The decline in benchmark indices was not limited to IT stocks.
Reliance Industries fell 1.39% as investors booked profits following the company’s AGM announcements and board approval for a Mumbai listing of Jio Platforms.
HDFC Bank dropped 2.32% as investors assessed developments around the appointment of the bank’s next chairman after the RBI approved a temporary extension for interim chairman Keki Mistry.
The weakness in these heavyweight stocks amplified the pressure on the Sensex and Nifty.
While large-cap stocks struggled, the broader market once again showed resilience.
The Nifty Smallcap 100 gained 0.42%, while the Nifty Midcap 100 rose 0.22% and Nifty Midcap Financial Services advanced 0.20%.
This indicates that the selling was largely concentrated in heavyweight IT and banking counters rather than being a broad-based market correction.
India VIX rose 2.34% to 12.97, reflecting a slight increase in investor caution.
Several defensive sectors managed to buck the trend.
Nifty Healthcare rose 0.98%, Nifty Pharma gained 0.73% and Nifty 500 Healthcare advanced 0.76%.
Among Sensex stocks, Eternal emerged as the top gainer with a 2.21% rise, followed by Bharti Airtel (+1.80%), Power Grid (+1.32%), NTPC (+1.04%), Titan (+0.84%) and Sun Pharma (+0.79%).
Consumer-focused stocks also found support, helping cushion some of the broader market weakness.
Vinod Nair, Head of Research at Geojit Investments Limited, said investors turned cautious after hopes of a US-Iran peace deal weakened and Accenture’s outlook raised concerns over technology spending.
“The IT index experienced a sharp correction, driven by Accenture’s softer outlook, which has heightened concerns over discretionary and digital spending. Nevertheless, a buy-on-dips strategy appears prudent, supported by the current comfort in oil prices and expectations of an earnings revival in H2FY27,” he said.
Ajit Mishra, SVP, Research at Religare Broking, said the market witnessed broad-based profit booking after a strong rally and struggled to sustain gains near key resistance levels.
He noted that while benchmark indices corrected, broader market participation remained healthy, suggesting the underlying recovery trend remains intact.
Investors will now closely track developments around global technology spending, management commentary from Indian IT firms and foreign investor activity.
The progress of the southwest monsoon, crude oil prices and developments surrounding the US-Iran situation will also remain key triggers for market direction in the coming weeks.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)