Why is stock market down today? BSE Sensex drops over 800 points, Nifty50 below 24,000 as IT stocks crash – top 5 reasons for fall
Stock market today: Indian equity benchmarks, Nifty50 and BSE Sensex, snapped their five day winning streak to tank in trade on Friday. The decline was led majorly by IT sector stocks crashing. Weak global sentiment, aggressive selling in technology stocks and other market pressures dampened investor confidence, dragging benchmark indices into negative territory.The decline followed a robust run over the previous five sessions, during which the benchmark indices had surged nearly 5%. Adding to investor caution, India VIX, the market’s volatility gauge, climbed nearly 5% to 13.30 in early trade on Friday. Sector-wise, the Nifty IT index bore the brunt of the selling pressure, plunging close to 6%.
Why is stock market down today?
1) Sharp fall in IT stocksTechnology stocks witnessed intense selling pressure, with heavyweight companies such as Infosys, TCS, Tech Mahindra and HCLTech tumbling by as much as 8%. The weakness followed a fall in Accenture’s shares on Wall Street after the global consulting firm lowered its FY26 revenue growth forecast to 3-4%, compared with its earlier guidance of 3-5%.The subdued outlook from Accenture revived concerns that businesses remain cautious about discretionary spending on IT consulting and digital transformation initiatives.2) FIIs return to sellingForeign institutional investors reversed course on Thursday after three straight sessions of net buying, turning sellers in the Indian market. According to provisional NSE data, FIIs offloaded equities worth Rs 1,025 crore during the session. However, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the intensity of foreign selling has moderated considerably. 3) Profit-taking after a strong runThe decline may also have been influenced by investors locking in gains following the recent rally. Over the previous five sessions, the Sensex had advanced nearly 5%, while the Nifty 50 climbed more than 4%, supported by optimism surrounding the US-Iran peace agreement. 4) Unfavourable global market signalsIndian equities were not alone in their weakness, as several Asian markets also traded lower. South Korea’s Kospi and Hong Kong’s Hang Seng each dropped close to 2%, while Japan’s Nikkei posted a subdued performance. Although Wall Street ended higher in the previous session, futures linked to the Dow Jones Industrial Average were trading in negative territory, indicating a potentially weak opening for US markets and adding to investor caution globally, according to an ET report.5) Underlying concerns in the Middle East remainWhile the US-Iran agreement has improved sentiment, geopolitical concerns have not disappeared entirely. US Vice President JD Vance recently criticised what he described as excessive anxiety within sections of the Israeli establishment regarding the deal between Washington and Tehran. Although the US-Iran understanding has eased immediate fears in financial markets, unresolved tensions in the region continue to linger in the background. Investors remain wary that any deterioration in the situation could once again unsettle global markets, which have already experienced significant volatility this year.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
