Why is stock market down today? - SENSEX, Nifty tumble over 1%. IT stocks major draggers

24 Apr 2026 , 12:37 PM

Indian stock markets witnessed a sharp sell-off on Friday, with benchmark indices plunging over 1% each, dragged down by weak IT sector sentiment, cautious guidance from major companies, and macroeconomic pressures.

Market Overview: Nifty and Sensex Under Pressure

• Nifty 50 declined over 250 points, slipping below the crucial 24,200 support level
• Sensex dropped more than 1,000 points, falling to around 76,600

The sharp decline was primarily triggered by weaker-than-expected Q4 results and cautious outlooks from IT giants like:

• Infosys
• HCL Technologies
• Tata Consultancy Services

Infosys Leads the Fall Despite Strong Q4 Numbers

Shares of Infosys fell sharply:

• Down as much as 5%
• Hit a 52-week low of ₹1,176.40
• Emerged as the top loser on Nifty

Q4 FY26 Performance

• Net profit: ₹8,501 crore (up 20.8%)
• Revenue: ₹46,402 crore (up 13.4%) vs ₹40,925 crore YoY

FY26 Full-Year Performance

• Net profit: ₹29,440 crore (up 10.20% from ₹26,713 crore)
• Revenue: ₹178,650 crore (up 9.6%)

Despite strong earnings, investor sentiment turned negative due to muted FY27 guidance:

• Revenue growth forecast: 1.5% to 3.5% (constant currency)

 

Why Infosys Outlook Is Worrying Investors

Management Commentary Highlights

• Strong start to the year
• Slowdown due to changing economic environment and West Asia conflict
• Early signs of stabilisation
• Growth expected in financial services, utilities, and AI services

Analyst Concerns

• Performance seen as in-line or slightly below expectations
• Major concern: weak demand outlook for FY27

Key issues flagged:

• Slower decision-making in March
• Rising competitive intensity

Brokerage Views on Infosys

Citigroup

• Reported weak Q4 revenue and margins
• Cut FY27–FY28 EPS estimates by 1–2%
• Still expects Infosys to outperform peers

Nomura

• Slight revenue miss but margin beat
• Expects ~21% margins in FY27
• Forecasts 3.4% USD revenue growth
• Positive on BFSI, EURS, and AI-led deals

 

IT Sector Drag: Tech Mahindra and TCS Also Fall

The negative sentiment spread across the IT sector:

• Tech Mahindra
• Tata Consultancy Services

Both stocks featured among top losers, reflecting broader concerns around:

• Slowing global demand
• Pricing pressure
• Delayed client decision-making

 

Rupee Weakness Adds to Market Pressure

The Indian rupee extended losses for the fifth consecutive session:

• Fell 24 paise to ₹94.25 per US dollar

Key Reasons for Rupee Decline

• Volatility in crude oil prices
• Continued strength in the US dollar
• Ongoing geopolitical uncertainty in West Asia

 

Geopolitical Tensions Impacting Markets

Despite a ceasefire, tensions remain elevated:

• Uncertainty around shipping through the Strait of Hormuz
• US military seizure of another Iranian oil tanker
• Rising risks to global energy supply chains

These developments are keeping investors on edge and impacting both currency and equity markets.

Additional Market Headwinds

Foreign Institutional Investors (FIIs) Selling

• Continued outflows from Indian equities
• Added pressure on both markets and rupee

HSBC Downgrade

• Downgraded Indian equities to “underweight” from “neutral”
• Cited risks from elevated energy prices

Technical Breakdown

• Nifty fell below 24,200 support level
• Triggered algorithmic selling and further downside momentum

Conclusion: Markets Face Near-Term Uncertainty

Friday’s market decline highlights a combination of earnings concerns, weak forward guidance, global tensions, and macroeconomic pressures.

While companies like Infosys delivered strong historical performance, the market is forward-looking, and:

• Muted growth outlook (1.5–3.5%)
• Rupee weakness (₹94.25/USD)
• FII outflows and global risks

are weighing heavily on sentiment.

In the near term, IT sector trends, currency movement, and geopolitical developments will remain key drivers for Indian markets.

Disclaimer – The stock/s and indices mentioned in this article is discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities market are subject to market risks. Read all the related documents carefully before investing.