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Sensex, Nifty Open Lower as IT Defies Global Tech Selloff

Indian equity benchmarks opened lower on Friday with broad-based selling, even as the IT sector posted strong gains against the global trend. The decline was led by sectors like FMCG and auto, while midcap and smallcap indices also fell. Analysts attribute the cautious sentiment to fluctuating oil prices from the Middle East crisis and the ongoing global technology sector weakness. Key technical levels place immediate resistance for Nifty between 25,600-25,650, with support in the 25,300-25,350 range.

Key Points: Sensex, Nifty Fall Amid Broad-Based Selling, IT Gains

  • Sensex down 346 points
  • Nifty IT sector gains 1.56%
  • FIIs net sellers of Rs 3,466 crore
  • Nifty support at 25,300-25,350
  • Global tech selloff weighs on sentiment
2 min read

Sensex, Nifty open lower amid broad-based selling

Indian markets open lower despite IT stock surge. Analysts cite global tech weakness, Middle East tensions, and key support levels for Nifty and Bank Nifty.

"fluctuating oil prices amid the ongoing crisis in Middle East are likely to keep investor sentiment cautious - Analysts"

Mumbai, Feb 27

The Indian equity markets opened the last session of the week with losses on Friday despite strong gains in the domestic IT stocks.

The Indian IT stocks defied global trends amid technology-led selloff seen in Wall Street following weaker-than-expected earnings from Nvidia.

As of 9.20 am, Sensex lost 346 points, or 0.42 per cent, to reach 81,903, and Nifty eased 113 points, or 0.44 per cent, at 25,383 in the morning trade.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 declined 0.30 per cent, and the Nifty Smallcap 100 lost 0.37 per cent.

All sectoral indices traded in red except Nifty IT, up 1.56 per cent and consumer durables, up 0.34 per cent. Nifty FMCG and auto were the major losers, down 0.59 per cent and 0.54 per cent, respectively.

Analysts said that fluctuating oil prices amid the ongoing crisis in Middle East are likely to keep investor sentiment cautious. The global tech weakness may continue to weigh on Indian IT stocks, which have already corrected over 20 per cent in February amid rising concerns around AI-led disruption, they added.

The immediate resistance zone of Nifty is placed between 25,600 and 25,650, while support is observed in the 25,300-25,350 range.

Resistance for Bank Nifty is seen in the 61,400-61,500 zone, while the 60,800-60,900 range remains a key support area, market participants said.

In Asian markets, China's Shanghai index eased 0.17 per cent, and Shenzhen dipped 0.68 per cent, Japan's Nikkei declined 0.24 per cent, and Hong Kong's Hang Seng Index added 0.67 per cent. South Korea's Kospi lost 0.77 per cent.

The US markets ended largely in red overnight as Nasdaq declined 1.18 per cent. The S&P 500 lost 0.54 per cent, and the Dow Jones added 0.03 per cent.

On February 26, foreign institutional investors (FIIs) net sold equities worth Rs 3,466 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 5,032 crore.

- IANS

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Reader Comments

P
Priya S
FIIs selling over 3400 crore while DIIs are buying... this tells a story. Domestic investors have faith in the India growth story despite global headwinds. 💪 We've seen these dips before and markets have always recovered.
R
Rohit P
Midcap and smallcap also down. This broad-based selling is a clear sign of profit booking after the recent rally. Maybe time to be cautious and not chase prices. Support at 25,300 looks crucial for Nifty.
M
Michael C
Respectfully, the article mentions AI-led disruption concerns for IT, but doesn't explore it enough. Indian IT needs a clearer strategy beyond cost arbitrage. This correction might be a wake-up call for genuine innovation.
S
Shreya B
Fluctuating oil prices due to Middle East tensions are the real spoiler. This impacts everything from inflation to corporate margins. Until that stabilizes, markets will remain jittery. Fingers crossed for some diplomatic progress soon. 🤞
K
Karthik V
Small dip, nothing to panic about. Markets have run up too fast, needed a breather. As long as DIIs continue to support, the long-term trend is intact. Use such days to add quality stocks in SIP mode.

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