Sensex, Nifty open lower as IT shares drag markets
Mumbai, June 19
Domestic equity markets opened lower on Friday after a recent rally, with IT stocks bearing the brunt of the selling pressure after global software services provider Accenture's guidance cut triggered concerns over the sector's growth outlook.
Sensex opened at 76,852.86, down 0.71 per cent or over 500 points, while Nifty began the session at 23,991.20, declining 0.73 per cent or more than 150 points.
Sector-wise, Nifty IT plunged nearly 6 per cent, while Nifty MidSmall IT & Telecom declined over 2 per cent.
Meanwhile, realty, consumer durables, financial services, metals, auto and FMCG indices were also trading in the red.
On the other hand, defensive sectors attracted buying interest. Nifty Pharma gained 0.47 per cent, while the Healthcare and MidSmall Healthcare indices rose 0.40 per cent and 0.38 per cent, respectively.
The sharp fall in IT shares came after Accenture cut its guidance, triggering a sell-off in Indian IT ADRs and dampening sentiment towards domestic technology stocks.
According to market experts, the near-term outlook remains constructive, supported by improving macroeconomic conditions and a sharp correction in crude oil prices.
They noted that short covering by foreign institutional investors (FIIs) has aided the recovery in banking stocks, with scope for further gains despite intermittent profit booking.
However, guidance cuts by global IT services firm Accenture could weigh on Indian IT stocks following a sell-off in their ADRs, although attractive valuations may trigger buying at lower levels.
Meanwhile, after the United States and Iran signed an interim peace agreement, oil tankers resumed transit through the Strait of Hormuz.
Brent crude, the global oil benchmark, fell more than 1 per cent to $78.83 per barrel. Similarly, US West Texas Intermediate (WTI) crude declined about 1 per cent to $75.78 per barrel.
Global cues remained mixed. Most Asian markets traded lower. Hong Kong's Hang Seng was down nearly 1 per cent, while Japan's Nikkei and South Korea's KOSPI were largely flat.
Wall Street closed higher overnight, with the Nasdaq gaining nearly 2 per cent and the S&P 500 rising around 1 per cent.
— IANS
Reader Comments
As a retail investor, these volatile days make me nervous. But experts say crude oil falling is good for India, so maybe we'll see recovery soon. Just need patience! 🙏
IT was overvalued after the rally, so this correction was overdue. But the US-Iran peace deal helping oil prices drop is great for our economy. Let's see if FIIs continue buying into banking stocks. Smart money is watching pharma! 🚀
Interesting to see how global events like Accenture's guidance and US-Iran peace directly impact Indian markets. The oil price drop is a positive, but IT sector worries are concerning. I'd be cautious with tech stocks for now.
Honestly, this is a time for disciplined investing. Don't panic sell! Pharma and healthcare are showing strength, and crude oil falling helps our fiscal deficit. But I wish regulators would do more to protect small investors from such wild swings. 🤔
As someone who tracks global markets, this feels like a healthy correction. Accenture's news is a near-term dampener, but Indian IT's fundamentals are strong. The oil deal is definitely a big positive for importers like India. Let the market settle! 🛢️📈
V Vikram M