Indian bluechip indexes declined on Friday as investor sentiment was dampened by worries about corporate earnings. The IT sector emerged as the sole exception, buoyed by comments from Tata Consultancy Services (TCS) indicating early signs of a demand revival.
Market Overview
The Nifty 50 fell 0.62% to 23,375 points as of 10:08 a.m. IST, while the BSE Sensex dropped 0.55% to 77,191.43. Both indexes had initially opened about 0.2% higher but reversed course shortly after.
Out of the 13 major sectors, 12 recorded losses. The broader small-cap and mid-cap indexes saw declines of approximately 2% and 1.5%, respectively, reflecting a more domestically focused downturn.
IT Sector Shines Amid Declines
The IT index was the only sector to register gains, rising 1.6%. Leading the charge was Tata Consultancy Services (TCS), which surged 3.9%, making it the top performer on the Nifty 50. The company’s optimism stems from its belief that the Donald Trump administration will help revive client confidence and discretionary spending in North America, a critical market for Indian IT firms.
Weekly Performance and Foreign Outflows
Both the Nifty and Sensex have lost around 2.7% this week, largely due to sustained foreign outflows. Concerns over a slowdown in corporate earnings and fewer anticipated U.S. interest rate cuts have made emerging markets less appealing to investors.
“Worries over potential moderation in corporate earnings amid fears of an economic slowdown have weighed heavily on the markets this week,” said Anita Gandhi, founder and head of institution at Arihant Capital Markets.
Notable Stock Movements
- IndusInd Bank: The private lender saw its stock tumble 2.8% following a downgrade from Goldman Sachs, which shifted its rating from “buy” to “neutral.” The firm cited rising defaults in the bank’s commercial retail portfolio as a key factor. IndusInd Bank was the top loser in the banking index, which fell 1%.
- Adani Wilmar: Shares of the fast-moving consumer goods company plunged 9.3% after the Adani Group announced the sale of its stake in the company to the public at a 15% discount to Thursday’s closing price.
Outlook
As concerns about corporate earnings and macroeconomic factors persist, market participants are closely monitoring developments in key sectors and the trajectory of foreign inflows. The IT sector’s performance provides a glimmer of hope, but broader market recovery remains uncertain.
