Benchmark BSE Sensex fell 558 points on Thursday amid heavy selling in IT shares as concerns over AI-led disruptions and waning hopes of a Fed rate cut after firm US economic data weighed on investor sentiment.
The 30-share BSE Sensex declined 558.72 points, or 0.66 per cent, to settle at 83,674.92. During the day, it tanked 716.97 points, or 0.85 per cent, to hit an intraday low of 83,516.67. The 50-share NSE Nifty declined 146.65 points, or 0.57 per cent, to end at 25,807.20.
Technology stocks led the slide with Tech Mahindra, Infosys and Tata Consultancy Services (TCS) tumbling nearly 6 per cent each to emerge as major laggards on the Sensex. HCL Technologies, Mahindra & Mahindra, Hindustan Unilever, Reliance Industries, Eternal, HDFC Bank, IndiGo, Kotak Mahindra Bank and Adani Ports also ended in the red. On the other hand, Bajaj Finance, ICICI Bank, Trent, Bharat Electronics Ltd, State Bank of India, Asian Paints, Bajaj Finserv, Titan, Larsen & Toubro, Bharti Airtel and Tata Steel were among the gainers.
BSE MidCap Select Index fell 0.48 per cent, while SmallCap Select Index slipped 0.28 per cent. Among sectoral indices, Focussed IT slumped the most by 5.40 per cent, followed by IT by 5.29 per cent.
A nosedive correction in the IT index triggered by mounting concerns over AI-led disruptions, along with low expectations of a US Fed rate cut due to strong US job data and unemployment rates, dampened investor sentiment. In the global markets, AI is reshaping markets by compressing margins in service-intensive sectors and increasing concentration-led volatility.
In India, this technology shift is likely to structurally transform IT services by accelerating delivery timelines and automating volume-driven tasks, thereby challenging the traditional headcount-based outsourcing model. A weak sentiment in the IT sector, along with lingering geopolitical tensions between the US and Iran, may influence investors to take a cautious approach in the near term.
Meanwhile, foreign institutional investors bought equities worth Rs 943.81 crore on Wednesday, while domestic institutional investors were the net sellers of stocks worth Rs 125.36 crore, according to exchange data.
Also read: Sensex and Nifty open red amid renewed selling pressure
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