IT Stocks Drag Sensex and Nifty Down Despite Positive Global Cues

12 Oct 2023 , 01:33 PM

Sensex and Nifty turned lower on Thursday as IT shares fell following TCS’s statement about ongoing headwinds in the sector due to a sluggish economic climate. At the time of writing Sensex was trading at Rs 66,438 which is a 0.05% drop from the previous day’s close. Whereas Nifty is trading at Rs 19,809 which is a 0.01% drop than the previous day’s close.

Top gainers include NMDC (6.32%), Bosch (4.03%), NALCO (3.71%), Gail (3.40%). Top losers include MCX India (-2.33%), HCL tech (-2.08%), Vodafone Idea (-1.69%), Godrej Prop (-1.71%).

Rate-sensitive stocks gained after the US Federal Reserve’s meeting minutes indicated no immediate interest rate hikes. IndusInd Bank, Axis Bank, SBI, Tata Motors, JSW Steel, ICICI Bank, Maruti, Tata Steel, and M&M advanced early in trading.

TCS reported an 8.7% increase in its September quarter net profit to Rs 11,342 crore but highlighted sector challenges. Other IT stocks, including Tech Mahindra, Infosys, and Wipro, also declined. Losses in Reliance, HUL, L&T, and Bharti Airtel weighed on the benchmark index.

Asian markets were trading positively, with gains in Hong Kong’s Hang Seng, Japan’s Nikkei 225, and South Korea’s Kospi. Sensex rose by 393.69 points to close at 66,473.05, and Nifty climbed 121.50 points to settle at 19,811.35 on Wednesday. Foreign Institutional Investors (FIIs) continued to be net sellers, offloading shares worth Rs 421.77 crore on Wednesday.

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