Markets Tumble Amid Q2 Earnings: IT Stocks Drag Sensex Lower

Weak cues from Asian markets and renewed US-China tensions also weighed on investor sentiment.

At the same time, gold prices hit a record high, adding to the cautious mood in the market. However, a sharp drop in crude oil prices -- with Brent crude falling to around $60 per barrel -- may help limit losses for Indian equities.

At 9:20 AM, the Sensex was trading at 83,365, down 103 points or 0.12 per cent, while the Nifty slipped 33 points or 0.13 per cent to 25,552.

"The Nifty managed to hold its gains and ended near the day's high, closing above the 25,550 mark with a strong bullish candle. This positive momentum suggests continued strength in the near term," analysts said.

"On the downside, immediate support is placed at 25,500, followed by 25,400, while on the upside, resistance is seen at 25,700 and 25,800 levels," market experts added.

Eternal, HCL Tech, Infosys, Tech Mahindra, Power Grid, Kotak Mahindra Bank, Trent, Tata Steel, Ultratech Cement, and ICICI Bank were among the major losers, declining up to 3.5 per cent.

On the other hand, gains in Asian Paints, Tata Motors, ITC, Bharti Airtel, Mahindra & Mahindra, and Maruti Suzuki helped trim some of the losses. These stocks rose between 0.3 per cent and 3 per cent.

In the broader market, the Nifty MidCap index slipped 0.28 per cent, while the Nifty SmallCap index edged up 0.10 per cent.

Among sectoral indices, IT was the biggest drag, with the Nifty IT index down 1.13 per cent. The Nifty Pharma and PSU Bank indices also declined by 0.3 per cent each.

"The market is resilient and technically strong. Price action in the leading stocks indicate short covering. Even now there is big shorts in the system and the strength in the market might keep the bears on the back foot, facilitating further short covering," market experts said.

- IANS