Sensex sinks 389 points, Nifty below 18,500; IT, PSBs crack; HCL Tech down 7%
Bucking the global trend, domestic equity markets fell on Friday bogged down by profit booking in IT stocks, and heavyweights like Reliance Industries, L&T, and financials. The S&P BSE Sensex, which started about 100 points higher, erased gains and dropped over 700 points from the day’s high to hit a low of 61,889.
The index, eventually, closed at 62,182, down 389 points or 0.62 per cent. The Nifty50, meanwhile, breached below the 18,500-mark and ended at 18,497, down 113 points or 0.61 per cent. It hit a low of 18,410 during the day.
In the broader markets, the MidCap and SmallCap indices shed 0.45 per cent and 1 per cent, respectively.
Sectorally, defensive indices like the Nifty FMCG and Pharma held gains as they rose 0.8 per cent and 0.4 per cent. On the downside, the Nifty IT index crashed 3.16 per cent. Credit Suisse has warned of a 10 – 27 per cent valuation-led correction in tech-related stocks amid US macro headwinds.
The Nifty PSU Bank and Realty indices were other top laggards that tumbled 1.7 per cent and 1.5 per cent, respectively.