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Nifty Plunges to 2-Month Low as IT Firms, Financials Drag Market
28 Jul
Summary
- Nifty and Sensex fall to lowest levels in nearly 2 months
- Large-cap IT stocks and select financials lead the decline
- Weak corporate earnings and cautious management commentary weigh on sentiment
On Monday, Indian stocks continued their downward trend, with the blue-chip Nifty 50 index falling for the third consecutive session to close at its lowest level in nearly two months. The benchmark Sensex dropped 572 points, or 0.7%, to 80,891, while the Nifty 50 fell 156 points, or 0.6%, to 24,681.
The decline was primarily driven by losses in large-cap IT firms and select financial heavyweights, following a weak set of corporate earnings and cautious management commentary. The Nifty Bank index slipped 444 points to 56,085, and the Nifty Midcap index shed 490 points to 57,519, indicating broad-based selling pressure in the market.
Large-cap IT stocks bore the brunt of the decline after Tata Consultancy Services' (TCS) job cut announcement sparked concerns about sector-wide demand and margin pressures. Realty shares also came under pressure, tracking weakness in earnings and sentiment spillover from the IT sector's news flow.
Among financials, Kotak Mahindra Bank slumped 8%, erasing over ₹30,000 crore in market capitalization, after reporting a weaker-than-expected June-quarter performance. Bajaj Finance and IndusInd Bank also declined as their cautious outlooks weighed on investor sentiment.
Despite the broad-based selling, a few stocks managed to buck the trend, with Shriram Finance, Cipla, and Laurus Labs posting gains on the back of strong quarterly results and positive outlooks.
