Market Wrap: Nifty and Sensex Tumble as IT Sector Faces Headwinds
Indian stock markets ended negative with Nifty 50 down 0.66% at 25,056.90 and Sensex falling 0.68% to 81,715.63. Trading and Diamond sectors outperformed, while Printing & Stationery and Cables were top losers. TCS hit a 52-week low, while Adani Power rebounded. Market breadth was negative with 2,920 declines against 1,600 advances out of 4,520 traded scrips.
*this image is generated using AI for illustrative purposes only.
Market Overview
The Indian stock markets ended in the red on Thursday, with both benchmark indices witnessing significant declines. The Nifty 50 closed at 25,056.90, down 166.05 points or 0.66%, while the BSE Sensex finished at 81,715.63, shedding 555.95 points or 0.68%.
Sectoral Performance
The market saw a mixed bag of sector performances, with some sectors managing to buck the overall negative trend:
Top Performing Sectors
- Trading (Avg. Per Change: +1.44%)
- Diamond, Gems and Jewellery (Avg. Per Change: +0.98%)
- Engineering Services (Avg. Per Change: +0.16%)
- Telecom (Avg. Per Change: +0.06%)
Top Losing Sectors
- Printing & Stationery (Avg. Per Change: -4.80%)
- Cables (Avg. Per Change: -3.36%)
Buzzing Stocks
Several stocks made headlines during the trading session:
TCS: The IT giant's shares hit a 52-week low, extending its losing streak and wiping out nearly ₹80,000 crore in market cap over five sessions. The stock was down 2.3% at ₹2,966.50, affected by new H-1B visa norms.
Adani Power: The stock rebounded, climbing 6.3% to ₹154.00 after a two-day slump, following Chairman Gautam Adani's letter to shareholders addressing recent controversies.
Dr Reddy's Laboratories: The company, along with Hetero Labs, announced plans to sell generic versions of an HIV prevention drug at a significantly reduced price starting 2027.
Reliance Consumer Products: The company entered into a ₹40,000 crore agreement with the government to establish food manufacturing facilities across India.
Nestlé India: The company announced it will review its third quarter results on October 16.
Market Breadth
The overall market breadth was decidedly negative:
| Category | Number of Scrips |
|---|---|
| Total Traded | 4,520 |
| Advances | 1,600 |
| Declines | 2,920 |
Conclusion
The Indian markets faced selling pressure, primarily driven by weakness in the IT sector due to global headwinds. While some sectors like Trading and Diamond, Gems and Jewellery showed resilience, the overall sentiment remained cautious. Investors will be closely watching global cues and domestic corporate earnings in the coming days for further market direction.
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