Sensex tumbles over 900 points, Nifty ends below 23,000; IT, metal stocks crash
Sensex tumbles over 900 points, Nifty ends below 23,000; IT, metal stocks crash
Benchmark stock market indices fell sharply on Friday as both the Sensex and Nifty closed over 1% lower. The S&P BSE Sensex tumbled 930.67 points to 75,364.69 at the closing bell, while the NSE Nifty50 tumbled 345.65 points to settle at 22,904.45.
At one point during the trading session, the Sensex had crashed over 1,000 points, and the Nifty50 plunged to trade below 22,900.
Sensex crashes 1,000 points: 3 reasons behind today's stock market bloodbath
Stock market crash: The S&P BSE Sensex was down 965.90 points to 75,329.46, while the NSE Nifty50 fell 361.10 points to 22,889.00 as of 2:08 pm.
Domestic stock market indices slumped sharply on Friday due to concerns over the impact of US reciprocal tariffs on global supply chains.
Domestic stock markets declined sharply in early trade on Friday after US President Donald Trump’s reciprocal tariffs led to a chaotic trading session on Wall Street as the leading indices registered their worst fall since the Covid-19 pandemic in 2020.
The S&P BSE Sensex was down 1021.29 points to 75,274.07, while the NSE Nifty50 fell 374.90 points to 22,881.75 as of 2:49 pm.
Uncertainty over the impact of US reciprocal tariffs, announced by Donald Trump, has led to chaos and panic across global markets. India has also been handed a hefty reciprocal tariff, triggering fears about corporate earnings among investors on Dalal Street.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, "Markets are going through heightened uncertainty which is likely to last some time. A trade war has been triggered by Trump and retaliatory tariffs from China, the EU and others are on the cards."
"This will only extend the period of uncertainty and confusion in the market," he added.
While experts are divided on the impact on India’s economy, some warn that disruptions to global supply chains will have far-reaching consequences.
A favourable trade deal with the US could help mitigate the damage, and analysts hope for a swift resolution to restore market stability.
A recession could have a devastating impact on several countries, including the US and other developed nations. This is due to the deadly mix of rising inflation and slowing growth. The Indian economy would also be hit hard should there be a global recession despite having good domestic indicators and lower tariff rates compared to other Asian nations.
"It appears that contraction in global trade and decline in global growth are inevitable in the present context. Decline in global growth will impact India’s growth,too, even though we might do better than other large economies," it added.
WHAT SHOULD INVESTORS DO NOW?
According to market experts, investors can wait for a few days to assess the situation further and see what retaliatory actions are initiated by other countries. While global markets are likely to feel the heat of Trump's reciprocal tariffs, a lot will depend on how other countries respond to the announcements.
"Investors can wait for the dust to settle down. For the short term, it would be better to focus on domestic consumption-driven themes and pharma in the externally linked segments," Vijayakumar said.
"A potential positive for the Indian market is the likelihood of FIIs turning buyers since the dollar has turned weak. "Fairly valued domestic consumption themes like financials and growth segments immune to tariffs like telecom, hospitality, healthcare, cement and digital platform stocks are likely to remain resilient," he added.
Most of the broader market indices also fell sharply during the session, which saw a sharp sell-off from the start and intensified as concerns grew over the impact of US reciprocal tariffs on the global economy.
Shares of metal, realty, pharma, information technology, auto and oil & gas suffered deep cuts. And all sectoral indices ended the session in negative territory.
Some of the top gainers on the Nifty50 were Tata Consumer Products, Bajaj Finance, HDFC Bank, Nestle India and Apollo Hospitals.
On the other hand, the top losers were Tata Steel, Hindalco, ONGC, Tata Motors and Cipla. Tata Steel fell as much as 9% on concerns over Donald Trump's tariffs.
Among auto stocks, Tata Motors was hit hard by Trump's 25% tariff on automobiles. Tata Motors stock fell nearly 7% during the session.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
IT stocks bleed as
stock market crashes. Why TCS, Infosys, Wipro shares are down?
All major IT stocks declined as fears of a US recession led to heavy selling. IT companies earn a large portion of their revenue from the US market, and concerns about a slowdown in technology spending have further weakened investor sentiment.
The NIFTY IT index has declined by 22.3% this year.
Information technology (IT) stocks took a sharp hit on Friday as investors reacted to global uncertainty following former US President Donald Trump's latest tariff announcement. While Sensex and Nifty fell over 1%, the NIFTY IT index fell 3%, hitting a 10-month low of 33,663.55.
All major IT stocks declined as fears of a US recession led to heavy selling. IT companies earn a large portion of their revenue from the US market, and concerns about a slowdown in technology spending have further weakened investor sentiment.
Shares of top IT firms, including Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, and Tech Mahindra, fell between 2.4% and 3.3% on Friday.
WHY ARE IT STOCKS FALLING?
Several factors have contributed to the sharp decline in IT stocks:
Trump’s tariff policy: The US has announced new tariffs on imports, raising concerns about global trade and economic growth. As IT companies earn a major chunk of their revenue from American clients, a slowdown in the US economy could lead to lower demand for technology services.
Weak demand and lower spending: Analysts have noted that there is a slowdown in technology spending. Companies are cutting discretionary spending, affecting new contracts and revenue growth for Indian IT firms.
JP Morgan’s cautious outlook: JP Morgan has warned investors against buying IT stocks at the moment. The firm expects major IT companies to give a cautious forecast for FY26, which could lead to further selling pressure.
WHAT BROKERAGES SAY ABOUT THE FUTURE OF IT STOCKS
HDFC Securities has provided its expectations for Q4 FY25 earnings of major IT firms. The brokerage believes that most large IT companies will report a decline in revenue due to weak demand, fewer billing days, and reduced spending by clients.
Infosys is likely to report the biggest drop, with a 1.8% decline in revenue QoQ.
TCS, HCL Technologies, Wipro, and Tech Mahindra may see a 0.5% decline in revenue QoQ.
Mid-tier IT companies are expected to show mixed results, with L&T Technology Services likely to lead growth at 13.7% QoQ due to seasonal factors and acquisitions.
Persistent Systems is expected to grow by 3.7% QoQ, while Tata Elxsi, Birlasoft, and Sonata Software may lag due to client-specific challenges.
HDFC Securities also shared its expectations for FY26 guidance from major IT companies:
Infosys is likely to forecast 2–4% revenue growth for FY26.
HCL Technologies may guide for 3–5% growth.
Wipro is expected to guide for -1% to +1.5% growth in Q1FY26.
L&T Technology Services may forecast over 10% growth, including benefits from acquisitions.
Margins are expected to remain stable, with some improvement due to currency movements and better supply conditions.
HCL Technologies is likely to maintain margins between 18% and 19%.
TCS is expected to keep its margins in the range of 26% to 28%.
HDFC Securities said that the total contract value (TCV) of new deals is likely to be muted, as there have been no large mega deals recently. TCS is expected to report a TCV of around $11 billion.
