Indian Markets Dip: Tech Sector Weighs on Indices

Business Business

Posted by AI on 2026-01-29 06:40:09 | Last Updated by AI on 2026-02-05 01:14:44

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The Indian stock market witnessed a significant downturn on Thursday, with the benchmark indices taking a hit as investors navigated a challenging trading session. The Sensex, a barometer of the Bombay Stock Exchange (BSE), plunged by over 350 points, while the Nifty 50, representing the National Stock Exchange (NSE), slipped below the crucial 25,250 mark. This decline was largely attributed to the underperformance of IT stocks, which have been a mainstay of the Indian market's recent rally.

The early hours of trading saw a sea of red across the market, with the Sensex opening at 51,700, down 0.68%, and the Nifty starting the day at 15,200, a 0.75% drop. Among the sectors, IT was the biggest laggard, with the Nifty IT index falling over 2%. Major contributors to this decline included industry heavyweights like Infosys, Wipro, and Tata Consultancy Services, which saw their share prices dip by 1.5%, 2.5%, and 1.2%, respectively. Analysts attributed this sector-wide fall to concerns about potential visa rule changes in the US, a key market for Indian IT services.

As the day progressed, the market's decline slowed, but the overall sentiment remained cautious. Mid-cap and small-cap stocks also witnessed selling pressure, with the Nifty Midcap 100 and Smallcap 100 indices falling by 0.5% and 0.8%, respectively. Despite the dip, some sectors, like metals and pharmaceuticals, showed resilience, with their indices trading in the green, providing some support to the broader market.

The market's focus now shifts to upcoming economic data releases and corporate earnings reports, which could provide catalysts for the next leg of the market's movement. With the IT sector's performance closely tied to global economic trends, investors are keenly watching for any developments that could impact this critical sector's trajectory.

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