IT stocks sink, dragging Sensex, Nifty to flat close

From the pack, , , L&T, , NTPC, and UltraTech Cement closed with gains, while Tech Mahindra, Asian Paints, TCS, M&M, and Titan closed with losses.

Among individual stocks, closed 3% higher after the Indian skincare firm posted a fourth-quarter profit compared to a loss a year ago, as consumers stocked up on beauty and personal care products.

also closed nearly 4% higher after the firm posted a massive 200% jump in net profit at Rs 116.3 crore in the quarter ended March 31, compared to Rs 38.67 crore in the year-ago period.

The US-rate sensitive IT index dropped 0.64% after strong labour market and business activity data fuelled concerns over tighter-for-longer monetary policy in the world's largest economy. IT firms earn a significant share of their revenues from the US.

Meanwhile, Nifty FMCG, metal, pharma, realty, and oil & gas also closed in the red, while Nifty Bank, Auto, Media, and Oil & Gas ended higher.

The market breadth was skewed in favour of the bears. About 2,155 stocks declined, 1,692 gained, and 98 remained unchanged on the BSE.

Expert Views

"Global market sentiments remained subdued as the recent US FOMC minutes suggest a continued hawkish stance on policy rates. US jobless claims fell over expected, corporate profits remained healthy, and stubborn inflation persists, giving the Fed no reason to cut rates," said Vinod Nair, head of research, at Geojit Financial Services.

Meanwhile, the domestic market is reaching new highs, with largecaps playing second fiddle to the broader market rally, indicating sustained momentum in the short term, Nair said.

Prashanth Tapse, senior VP (Research), Mehta Equities, said, “Markets ended flat in a sluggish trading session as investors preferred to stay on the sidelines due to weak global cues. As it was the last trading day of the week, investors didn't want to increase exposure to equities and rather followed global cues.”

Global Markets

Global stocks slipped on Friday, heading for a weekly loss, after data signalling a rebound in US inflation outweighed a boost to sentiment in the wake of strong earnings from artificial intelligence giant Nvidia.

MSCI's global share index, which hit intraday highs earlier in the week, slipped 0.2% and was set for a 0.9% weekly loss. Europe's Stoxx 600 share index was 0.5% lower.

Wall Street's S&P 500 share index is 0.7% lower this week, although stock futures suggested it would tick higher on Friday.

Oil Prices Decline

Oil prices extended losses on Friday, pressured by lingering concerns that sticky inflation could prolong higher interest rates and curb fuel demand.

Brent crude futures fell by 58 cents, or 0.71%, to $80.78 a barrel. US West Texas Intermediate (WTI) crude futures were down 59 cents, or 0.77%, at $76.28.

Rupee Strengthens

The Indian rupee rose to a two-month peak on Friday, boosted by likely strong dollar inflows into domestic equities even as most Asian currencies declined pressured by a rise in US bond yields.

The rupee rose 0.2% to close at 83.0975 against the US dollar — its strongest closing level since March 19.


(With inputs from agencies)