Banking and IT stocks caused the Sensex and Nifty to sink nearly 1%.

Equity indices Sensex and Nifty drop nearly 1% as investors sell bank and IT stocks before earnings season

Benchmark stock market indices saw a volatile session as Sensex, Nifty ended the week falling nearly 1% on Friday. The major laggards that pulled the market down were shares in the IT, banking, financials and pharma sectors.

The S&P BSE Sensex plunged 720.60 points to end at 79,223.11, while the NSE Nifty50 lost 183.90 points to end at 24,004.75.

Trivesh, COO Tradejini, said that the much-anticipated Santa Claus rally didn’t materialise this year, but the New Year’s rally did make a brief appearance, lasting for just a day.

“Today’s decline can be attributed to profit booking in the IT and financial sectors, where selling pressure was evident after the index tested resistance near 24,196. While major banks continued to display resilience with steady inflows, broader market sentiment reflected caution. Additionally, global cues played a role, with the US markets’ five-day consecutive fall impacting sentiment, even as Asian markets showed resistance,” he added.

In today’s choppy trading session, Oil and Natural Gas Corporation delivered a stellar performance, surging 5.11%, while Tata Motors showed strong momentum with a rise of 3.13%. SBI Life Insurance Company advanced 1.95%, followed by Titan Company which gained 1.80%, and Nestle India Limited which added 1.40%.

On the losing side, technology and banking stocks faced pressure, with Wipro Limited leading the declines, dropping 2.83%. HDFC Bank fell 2.53%, while Adani Ports and Special Economic Zone declined 2.30%. Tech Mahindra slipped 2.11%, and Cipla rounded out the top losers with a decrease of 1.98%.

Most sectoral indices ended in the red, though a few sectors managed to buck the trend. The banking pack faced significant pressure, with Nifty Bank dropping 1.26% and Nifty Private Bank falling 1.00%. Healthcare stocks struggled as Nifty Healthcare Index declined 1.31% and Nifty Pharma fell 1.38%. Technology stocks also had a rough day, with Nifty IT sliding 1.45%.

Nifty Financial Services lost 1.25%, while its counterpart Nifty Financial Services 25/50 declined 0.61%. Nifty Midsmall IT & Telecom fell 0.77%, Nifty Realty dropped 0.69%, and Nifty Midsmall Financial Services decreased by 0.46%. Nifty Auto slipped 0.22%, and Nifty Midsmall Healthcare declined 0.21%.

Nifty Media showed strength with a gain of 1.37%, while Nifty Oil & Gas rose 1.19%. Other gainers included Nifty Consumer Durables (+0.55%), Nifty PSU Bank (+0.32%), Nifty FMCG (+0.25%), and Nifty Financial Services Ex-Bank (+0.11%). Nifty Metal remained unchanged.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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