Domestic equity markets started lower on Friday following a recent rally, particularly impacting IT stocks due to worries over the sector’s growth outlook after Accenture’s guidance cut. Sensex opened at 76,852.86, down 0.71%, while Nifty began at 23,991.20, declining 0.73%. Nifty IT saw a significant drop of nearly 6%, and Nifty MidSmall IT & Telecom fell over 2%.
Real estate, consumer durables, financial services, metals, auto, and FMCG indices were in the negative territory. Conversely, defensive sectors like Nifty Pharma gained 0.47%, and Healthcare and MidSmall Healthcare indices rose by 0.40% and 0.38%, respectively.
The decline in IT shares followed Accenture’s guidance cut, leading to a sell-off in Indian IT ADRs and affecting local technology stocks sentiment. Market experts believe in a positive near-term outlook supported by improving macroeconomic conditions and a significant drop in crude oil prices.
Foreign institutional investors’ short covering has helped the recovery in banking stocks, with potential for further gains despite some profit booking. Although Accenture’s guidance cuts may impact Indian IT stocks due to ADR sell-offs, attractive valuations could drive buying at lower levels.
After the US and Iran signed an interim peace agreement, oil tankers resumed transit through the Strait of Hormuz. Brent crude fell over 1% to $78.83 per barrel, and US West Texas Intermediate (WTI) crude dropped about 1% to $75.78 per barrel. Global markets showed mixed cues, with most Asian markets trading lower, while Wall Street closed higher, with Nasdaq up nearly 2% and S&P 500 rising around 1%.
