Sensex Sheds 690 Points, Nifty Ends Below 25,200 as IT Stocks Drag; TCS Falls 4%

Indian benchmark indices ended sharply lower on Thursday, weighed down by a broad-based sell-off in IT and auto stocks. A weak start to the earnings season and escalating global trade tensions also contributed to the negative market sentiment.

The S&P BSE Sensex tumbled 689.81 points, or 0.83%, to close at 82,500.47, while the NSE Nifty50 declined 205.40 points, or 0.81%, to end the session at 25,149.85. Both indices saw sharp losses in the afternoon session, reversing early gains driven by FMCG and pharma stocks.

IT Stocks Weigh Heavily

The sharp downturn was primarily driven by IT sector underperformance, with Tata Consultancy Services (TCS) leading the decline. TCS shares dropped 3.46% after investor sentiment turned cautious over order delays and a lack of new investments, which could dampen FY26 earnings expectations.

Other tech stocks also struggled, contributing to a 1.78% drop in the Nifty IT index.

“The domestic market experienced a negative close due to a sober start to Q1 earnings and concerns over a potential 35% US tariff on Canada. These headwinds, coupled with high valuations, have led to restrained inflows,” said Vinod Nair, Head of Research at Geojit Financial Services.

Top Gainers and Losers

Despite the broader weakness, a few stocks managed to end in the green. The top gainers on the Nifty50 were:

• Hindustan Unilever: +4.61%
• Axis Bank: +0.79%
• Sun Pharma: +0.41%
• NTPC: +0.37%
• Eternal: +0.08%

On the flip side, major laggards included:

• TCS: –3.46%
• Mahindra & Mahindra: –2.76%
• Bharti Airtel: –2.20%
• Tata Motors: –2.00%
• Titan: –1.73%

Sectoral and Broader Market Performance

Among sectoral indices, only a few managed to stay afloat:

• Nifty FMCG: +0.51%
• Nifty Pharma: +0.68%
• Nifty Metal: +0.43%
• Nifty Healthcare: +0.07%

In contrast, the worst-performing sectors were:

• Nifty IT: –1.78%
• Nifty Auto: –1.77%
• Nifty Media: –1.60%
• Nifty Oil & Gas: –1.26%
• Nifty Realty: –1.21%

The broader markets also closed in the red. The Nifty Midcap 100 fell 0.88%, while the Nifty Smallcap 100 dropped 1.02%. Meanwhile, India VIX, the volatility index, rose 1.24%, indicating growing investor caution.

Outlook

With Q1 earnings season underway, investors are expected to adopt a cautious, buy-on-dips approach, closely monitoring earnings reports and global trade developments. However, premium valuations and macroeconomic headwinds may limit upside in the near term.

IT.