Sensex, Nifty Fall as IT Stocks Drag Market into Red Zone

Weak sentiment in the technology sector outweighed gains seen in select banking and finance stocks.

The Sensex closed at 83,674.92, slipping 558.72 points, or 0.66 per cent. Meanwhile, the Nifty settled at 25,807.2, down 146.65 points, or 0.57 per cent, from the previous close.

"As long as Nifty trades below the 25,840-25,900 resistance band and remains within the downward sloping channel, the short-term bias stays negative, with immediate downside risk toward 25,750 and possible extension toward 25,700," an analyst said.

"Only a strong reclaim above 25,950 would neutralize the prevailing bearish structure," according to the expert.

IT stocks were the biggest drag on the market. Shares of Tech Mahindra, Infosys, TCS and HCL Tech saw strong selling pressure and featured among the top losers on the BSE.

Auto major Mahindra & Mahindra also ended the session in the red. In contrast, a few stocks managed to move higher despite the weak market mood.

Bajaj Finance, ICICI Bank, Bharat Electronics (BEL) and Trent closed as the top gainers, providing some support to the indices.

On the sectoral front, the Nifty IT index was the worst performer of the day, plunging 5.51 per cent as investors sold technology stocks aggressively.

Realty stocks also remained under pressure, with the Nifty Realty index falling 1.45 per cent.

The Nifty Oil & Gas index declined 1.19 per cent. However, financial stocks showed relative strength, and the Nifty Financial Services index ended the day with a gain of 0.38 per cent.

The broader markets also mirrored the weak trend. The Nifty MidCap index closed 0.47 per cent lower, while the Nifty SmallCap index slipped 0.64 per cent.

Analysts said that the sharp losses in IT heavyweights and weakness in broader market segments kept investors cautious, leading to a negative close for the Indian equity markets.

- IANS