Indian benchmark equity indices snapped their five-session winning streak on Friday, with the Sensex tumbling more than 600 points and the Nifty slipping below the 24,050 mark amid sharp selling in information technology stocks and fresh geopolitical concerns.
The 30-share BSE Sensex fell 607.08 points, or 0.78 per cent, to close at 76,802.90. During intraday trade, the index plunged as much as 940.26 points, or 1.21 per cent, to touch a low of 76,469.72. The broader NSE Nifty50 also ended in the red, declining 154.90 points, or 0.64 per cent, to settle at 24,013.10.
The decline came after a strong rally over the previous five trading sessions, during which the Sensex had surged 3,577.43 points, or 4.84 per cent, while the Nifty gained 1,006.4 points, or 4.34 per cent.
Technology stocks bore the brunt of the selling pressure after global IT services giant Accenture lowered its full-year revenue growth forecast, triggering concerns about demand prospects for the sector. Investor sentiment was further dampened by renewed geopolitical uncertainty.
Among the Sensex constituents, Infosys emerged as the biggest loser, sliding 6.69 per cent. Tata Consultancy Services shed 3.53 per cent, HCL Technologies dropped 2.74 per cent, and Tech Mahindra declined 2.45 per cent. Other major laggards included HDFC Bank, Mahindra & Mahindra, Reliance Industries, and Hindustan Unilever.
On the positive side, Eternal, Bharti Airtel, Power Grid Corporation, and NTPC managed to end the session with gains. Reflecting the weakness in technology counters, the BSE IT index slumped 3.57 per cent, making it one of the worst-performing sectoral indices of the day.
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Investor caution also intensified after reports that US Vice President J D Vance had postponed his planned trip to Switzerland for discussions with Iranian negotiators. The White House attributed the delay to logistical reasons.
The talks were expected to focus on the technical aspects of implementing the Memorandum of Understanding (MoU) signed between the United States and Iran and were scheduled to take place in Switzerland on Friday.
"Indian equity markets retreated after five consecutive sessions of gains, as investors booked profits amid renewed geopolitical uncertainty and sharp selling in IT stocks. Sentiment weakened following Accenture's cautious earnings outlook, while the postponement of scheduled US-Iran negotiations undermined expectations of a smooth progression in the broader peace process," said Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech platform.
Meanwhile, Reliance Industries announced that the board of Jio Platforms Ltd, its digital services and telecommunications subsidiary, had approved the filing of draft documents for an initial public offering involving a fresh issue of up to 27 crore equity shares.
Speaking at Reliance Industries' 49th annual general meeting, chairman and managing director Mukesh Ambani said the draft red herring prospectus (DRHP), cleared by the Jio Platforms board, would be filed with the Securities and Exchange Board of India (SEBI) on Friday.
In the commodities market, Brent crude, the international oil benchmark, eased 0.58 per cent to USD 79.39 a barrel. Across Asia, South Korea's Kospi index ended marginally lower, while Japan's Nikkei 225 finished in positive territory. Markets in Shanghai and Hong Kong remained closed on account of holidays. European markets were trading mostly higher during afternoon trade, while US equities had closed with gains on Thursday.
Foreign Institutional Investors (FIIs) continued to remain net sellers, offloading equities worth Rs 1,025.20 crore on Thursday, according to exchange data.
The market decline followed Thursday's positive close, when benchmark indices had extended their winning run for a fifth straight session. The Sensex had gained 254.36 points, or 0.33 per cent, to finish at 77,409.98, while the Nifty advanced 82.30 points, or 0.34 per cent, to settle at 24,168.
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