sensex today: Market Watch: IT stocks lead downside on Dalal Street | The Economic Times Podcast

Out of tune with the positive global trend, domestic equities ended lower on Friday due to profit booking, as investors preferred to lighten positions ahead of the weekend.

Slipping below the support level of 18,500 points, the Nifty 50 settled 0.6% down at 18,496. The BSE Sensex closed 0.6% lower at 62,181 points.

Dragged by the underperforming IT stocks, benchmark indices registered weekly losses for the 1st time in 2 weeks, shedding over 1% each.

Meanwhile, equities in other Asian markets ended mostly higher as the dollar retreated and investors drew comfort from China’s move to ease Covid-19 restrictions across the country.

The fall in domestic equities was led by the information technology pack, the second most influential sectoral group on the Nifty, after a profit warning by sector major HCL Technologies soured the mood.

Shares of HCL Technologies slumped 7% to Rs 1,027.50. They were the worst hit on Nifty 50 after the company said revenue growth in the current financial year will be at the lower end of its guided range of 13.5-14.5%.

This had an impact on the entire pack, with Tata Consultancy Services, Wipro, Infosys, and Tech Mahindra shedding more than 1-3%.

Public sector banks, which were the darlings of Dalal Street, succumbed to profit booking after the recent gains. The Nifty PSU Bank index fell 1.8%, with Bank of Maharashtra, Bank of India, Union Bank of India, and Indian Bank declining by 5-7%.

Weakness was broad based, as stocks in the midcap and smallcap segments, too, saw profit booking.

Big losers in this space include Dilip Buildcon, Rail Vikas Nigam, Suzlon Energy, Indiabulls Real Estate, and Fertilisers & Chemicals Travancore — ending 5-7% down.

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