It was another weak session for the Indian stock market, as key indices extended their slump for the third consecutive day on Friday, April 23, dragged down by broad-based selling in technology stocks.
Global sentiment also remained unfavourable for risk assets, as tensions in the Middle East flared up again, keeping crude oil prices elevated and reigniting inflation worries.
Consequently, the Nifty slipped 1.10% to fall below the 24,000 mark, settling at 23,907, while the S&P BSE Sensex ended at 76,670, down 1.28% from Thursday’s close. The broader markets also remained weak, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices declining by up to 1%.
Heavy selling was seen across the technology pack, as weak earnings spooked investors, dragging the Nifty IT index down 5.3%. The Nifty Media and Nifty Pharma indices also declined 1.87% and 1.77%, respectively.
Other sectors, such as Nifty Realty, Nifty Chemicals, and Nifty FMCG, each fell over 0.73%, while Nifty PSU Bank and Nifty Metal ended with marginal losses.
Vinod Nair, head of research at Geojit Investments Limited, said, “The Indian equity market extended its profit-booking streak, pressured by heightening geopolitical tensions in West Asia, a sharp rally in crude oil prices, and a weakening rupee. IT stocks led the decline following disappointing quarterly earnings, while selling pressure was broad-based across sectors.
“FIIs returned to net selling again after a brief spell of inflows. Sentiment was further dented by global rating agencies downgrading India on inflation and macro concerns, along with the RBI flagging early signs of slowing growth. While valuations have corrected, investors are expected to closely monitor the ongoing results for any potential earnings downgrade, given the wobbling geopolitical uncertainties,” he further added.
Tech rout deepens as Infosys, midcaps see heavy losses
Today’s top laggards were largely from the technology pack, with Infosys leading the decline, plunging 6.9% to ₹1,154 apiece after investors reacted negatively to the company’s March quarter performance, released post-market hours on Thursday.
Other stocks such as Persistent Systems, HCL Technologies, Coforge, LTIMindtree, and TCS also closed with heavy losses of up to 5%. Mid- and small-cap tech stocks witnessed sharp selling as well, with Firstsource Solutions falling 7%, while Cyient and Zensar Technologies declined 6.7% and 5.3%, respectively.
Crude-sensitive stocks were among the top laggards, with Ceat and JK Tyre & Industries slipping up to 6.2%. Meanwhile, losses in Ola Electric shares extended for the second consecutive day, with the stock declining 4% to ₹35.7 apiece.
Select auto and capital goods stocks also came under pressure, including Honeywell Automation, ABB India, and Hyundai Motor India, which fell 4%, 3.3%, and 3.3%, respectively. Pharma stocks reversed recent gains, with four stocks from the Nifty Pharma index declining between 2% and 5.2%, led by Alkem Laboratories as the top laggard.
Select stocks defy market weakness, Himadri leads rally
Despite the broad-based sell-off, select stocks managed to defy the weak market trend, as investors rewarded companies with strong March quarter performance. Himadri Speciality Chemicals emerged as the top performer, rising 5.6% to settle at ₹566.2 apiece.
Schneider Electric and Cochin Shipyard witnessed strong buying interest, with both stocks ending the session with gains of over 4.5%. Better-than-expected Q4 performance lifted Adani Energy Solutions shares by 3.7% to ₹1,412 apiece.
IDBI Bank shares advanced 3.3% to ₹76.2 apiece after Union Finance Minister Nirmala Sitharaman said the government will continue with the bank’s disinvestment process.
Other top gainers included RBL Bank, Navin Fluorine International, PNB Housing Finance, Aster DM Healthcare, HFCL, HDB Financial Services, NMDC, and GE Vernova T&D India, all of which closed with gains of over 2%.
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