The Nifty IT index was the biggest loser, down 4.71 percent at the close. However, most other sectoral indexes rose, led by PSU banks, FMCG, oil and gas, and real estate.
Digital Desk: Benchmark
stock market indices finished lower on Monday, although reducing early losses,
as IT stocks failed to recover. This ended a nine-day winning streak in
domestic markets.
The S&P BSE Sensex
dropped 520.25 points to 59,910.75, while the NSE Nifty 50 declined 121.15
points to 17,706.85. While certain broad market indices rose, overall market
momentum was muted due to increasing volatility.
The Nifty IT index was the
biggest loser, down 4.71 percent at the close. However, most other sectoral
indexes rose, led by PSU banks, FMCG, oil and gas, and real estate.
Nestle India outperformed
the Nifty 50 index, rising 3.90 percent. Other notable gainers included Power
Grid Corporation, SBI, Britannia, and Coal India.
The leading losers on the 50-share index were IT firms, led by
Infosys, Tech Mahindra, and HCL Tech.
The drop in IT stocks follows a weaker-than-expected
fourth-quarter performance by Tata Consultancy Services (TCS) and Infosys, two
of India's largest IT corporations.
Both reported lower-than-expected earnings, but analysts were more
concerned about the future for international demand.
Though TCS' demand outlook improved, management remains cautious
about the future in the aftermath of this year's tight global economic environment,
which has been exacerbated by recent banking instability in the US.
Domestic stock markets were also hurt by global market downturn,
since there is growing concern about the potential of a US recession.
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