Why did Nifty and Sensex open lower on Wednesday?

Nifty and Sensex opened lower on Wednesday primarily due to a sharp sell-off in IT stocks, which mirrored a tech rout in the US.

What caused the IT sector to decline?

The IT sector experienced a significant decline, with its index sliding nearly 6%, influenced by a major tech rout in the US.

What factors contributed to market caution?

Market caution was attributed to investors booking profits after a recent rally and escalating geopolitical tensions between the US and Iran.

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Markets Slip Amid IT Sell-off, Geopolitical Fears

4 Feb

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Summary

Benchmark indices Nifty and Sensex opened lower on Wednesday.
IT stocks led the decline, with the sectoral index dropping 6%.
Geopolitical tensions and profit-booking added to market caution.

Markets Slip Amid IT Sell-off, Geopolitical Fears

Indian benchmark indices, Nifty and Sensex, experienced a slight downturn on Wednesday. This decline was significantly influenced by a substantial sell-off in the IT sector, which saw its index fall by approximately 6%. The weakness in IT stocks mirrored a broader tech rout observed in the United States. Following a period of strong gains on Dalal Street, investors also opted to book profits, contributing to the market's cautious approach. Adding to the sentiment of uncertainty, escalating geopolitical tensions between the US and Iran further influenced trading decisions on the day.

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