Sensex Slides 800 Points as IT Stocks Crumble; ₹2 Lakh Crore in Market Value Wiped Out
Indian equities snapped a five-session winning streak on Friday as a sharp sell-off in information technology stocks triggered broad weakness in benchmark indices, erasing nearly ₹2 lakh crore in investor wealth.
By 12:15 PM, the BSE Sensex was down 779.94 points, or 1.01%, at 76,630.04, while the NSE Nifty 50 declined 212.20 points, or 0.88%, to 23,955.80. Earlier in the session, the Sensex had plunged more than 800 points as investors rushed to exit technology counters.
The decline came after global IT major Accenture lowered its guidance and highlighted continued uncertainty in client spending, raising concerns about growth prospects for India’s software exporters.
Accenture Outlook Triggers IT Rout
Technology stocks bore the brunt of the selling pressure, with the Nifty IT index tumbling 5.29% to 26,961.75, making it the worst-performing sector on the market.
Infosys led the losses, falling 7.76%, while TCS dropped 5.74%. Tech Mahindra declined 4.60% and HCLTech slipped 3.84%. The sell-off pushed the Nifty IT index close to its 52-week low, reflecting growing concerns over demand visibility in the global technology services sector.
Brokerage Goldman Sachs said Accenture’s commentary carries a negative read-across for Indian IT companies, citing continued uncertainty around client spending and project pipelines.
₹2 Lakh Crore Market Value Eroded
The sharp decline in frontline technology stocks wiped out approximately ₹1.95 lakh crore from the market capitalisation of Sensex-listed companies within hours of trading.
The combined market value of Sensex constituents fell from ₹477.61 lakh crore in the previous session to ₹475.66 lakh crore, highlighting the impact of the IT-led correction.
Broader Markets Hold Up Better
Despite the weakness in benchmark indices, the broader market remained surprisingly resilient.
The Nifty Smallcap 100 gained 0.28%, while the Nifty Smallcap 250 advanced 0.37%. The Nifty MidSmallCap 400 rose 0.11% and the Nifty Microcap 250 added 0.50%.
The divergence suggests that selling pressure remained concentrated in large-cap technology names rather than spreading across the broader market.
Defensive Sectors Attract Buying
Investors rotated into defensive sectors amid the volatility.
The Nifty Pharma index gained 0.39%, while the Nifty Healthcare index rose 0.36%. Media stocks also outperformed, with the Nifty Media index advancing 0.90%.
On the other hand, Realty (-1.02%), Auto (-0.76%), PSU Banks (-0.73%) and Oil & Gas (-0.71%) traded in negative territory.
India VIX, the market’s fear gauge, climbed 5.52% to 13.37, indicating heightened near-term volatility.
Top Movers
Among Sensex stocks, Infosys, TCS, Tech Mahindra, HCLTech and HDFC Bank were the biggest losers.
On the gaining side, NTPC rose 1.34%, followed by Bharti Airtel (0.86%), Bajaj Finance (0.58%), Titan (0.46%) and Power Grid (0.43%).
Reliance AGM Remains Key Focus
Investors are also awaiting updates from Reliance Industries’ annual general meeting later in the day.
Market participants will closely track announcements related to the company’s new energy ambitions, retail expansion strategy and potential developments around a future Jio listing.
Reliance shares remained relatively stable despite the broader sell-off, slipping just 0.18%.
Analysts See Near-Term Pressure But Structural Support Remains
V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the correction in IT stocks was largely driven by Accenture’s cautious outlook and could weigh on the sector in the near term.
However, he noted that falling crude oil prices, easing foreign investor selling and sustained domestic institutional inflows continue to provide support to the broader market. According to him, valuations in several IT names are becoming increasingly attractive after the recent correction.
Foreign institutional investors remained net sellers on June 18, offloading equities worth ₹1,025 crore. Domestic institutional investors, meanwhile, purchased shares worth ₹3,516 crore, helping cushion the impact of foreign outflows.
Ponmudi R, CEO of Enrich Money, said investor sentiment has improved following easing geopolitical tensions and the reopening of the Strait of Hormuz, which has reduced concerns about global energy supply disruptions. Stable crude oil prices and progress on key trade agreements involving India have also contributed to a more constructive market outlook.
Key Nifty Levels
According to Anand James, Chief Market Strategist at Geojit Investments, the broader uptrend remains intact despite Friday’s decline.
He said the 24,200 level remains a near-term target, with 24,300-24,600 also on the radar. However, a sustained move below 24,100 could signal weakness, while a deeper correction is unlikely unless the index falls below 23,800.
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