Sensex and Nifty Drop Over 1% on IT Selloff, FII Outflows

Indian benchmark indices fell more than 1% on Tuesday. The decline snapped a four-session rally that had seen the indices climb last week. A global technology selloff and fresh foreign fund outflows triggered broad-based selling.

The BSE Sensex lost 893.39 points, or 1.16%, to close at 76,200.68. The NSE Nifty dropped 278.80 points, or 1.16%, to 23,824.10. Foreign institutional investors sold equities worth Rs 635.91 crore on Monday, exchange data showed.

Ponmudi R, CEO of Enrich Money, said the market snapped its recent oil-driven rally and declined sharply alongside global peers. “Losses were led by the IT sector, which declined more than 2 per cent, while a weaker rupee and growing expectations of further US monetary tightening added to investor caution,” he said.

In Asia, South Korea’s Kospi tanked 10%. Japan’s Nikkei, Shanghai’s SSE Composite and Hong Kong’s Hang Seng all ended sharply lower. European markets also traded in the red.

From the Sensex pack, Infosys and Tata Consultancy Services each fell more than 3%. Bharat Electronics, Tata Steel, Adani Ports, HCL Tech and State Bank of India were among the other laggards. Power Grid, Axis Bank, Sun Pharma and Maruti Suzuki managed gains. HDFC Bank also contributed to the weakness. HDFC Bank carries an Alpha Score of 43, reflecting mixed signals, while Infosys scores 57, a moderate reading.

The IT sector’s decline reflected a broader global tech rout. The rupee’s weakness against the dollar added to the pressure on import-heavy sectors. Brent crude slipped 0.67% to $77.46 a barrel, offering little support.

Last week, the benchmarks had rallied in four of five sessions. Monday’s session also ended higher. Tuesday’s selloff erased those gains.