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Benchmark equity indices ended lower today, snapping their four-day winning streak due to selling in IT shares and index heavyweights amid weak global cues and foreign fund outflows.
The 30-share BSE Sensex declined by 195 points, or 0.26 percent, to close at 73,677, while the NSE Nifty-50 settled 49 points, or 0.22 percent, lower at 22,356.
In the Sensex index, which is a pack of 30 companies, shares of 11 companies ended in the green while those of 19 companies closed in the red.
Among Sensex firms, Bajaj Finserv and Bajaj Finance fell by over 4 percent each. Infosys, Nestle India, and Tata Consultancy Services were also among other major laggards.
On the other hand, Tata Motors, Bharti Airtel, State Bank of India, Sun Pharma and NTPC were among the gainers.
In the broader market at the BSE, the Mid-Cap index fell 0.17 percent while the Small-cap index declined 0.63 percent.
In the sectoral indices at the BSE, IT and FMCG sectors fell over one percent. BSE Teck Index also fell 0.90 percent.
On the other hand, Auto sector rose 1.30 pecent.
The blue-chip index NSE Nifty 50 shed 0.22% to 22,356.30, while the BSE Sensex dropped 0.26% to 73,677.13 at the close.
Heavyweight IT stocks dropped 1.59% on the day after CLSA flagged “more downside risks for fiscal 2025 earnings in the sector due to weak demand outlook”.
The brokerage downgraded Tata Consultancy Services and HCLTech to ‘sell’ from ‘underperform’. TCS and HCLTech fell 1.71% and 1.14%, respectively.
The U.S. Federal Reserve Chair Jerome Powell’s congressional testimony and key labour market data, both due later in the week, will also be crucial for IT companies, which earn a significant share of their revenue from the United States.
However, both the Nifty 50 and Sensex logged new closing highs in the previous three sessions, on the back of faster-than-expected domestic quarterly growth, with the Nifty 50 settling above the 22,300-level in each of the four sessions in March.
Analysts attributed the consolidation and occasional profit booking to elevated valuations, but they remained positive on the outlook for Indian equities.
“It is crucial to acknowledge the strong macroeconomic, corporate fundamentals and stability that underpin India’s equity valuation, paving the way for further upside potential,” said Mike Shiao, chief investment officer of Asia ex-Japan at Invesco.
Auto stocks gained 1.35%, boosted by a 3.51% jump in Tata Motors, which announced plans to split into two separate listed companies.