Nifty Slips Below 25,000 as Sensex Drops 260 Points on Heavyweight IT Selloff
Indian equity benchmarks surrendered early morning gains in midday trade on Monday, with the NIFTY50 slipping back below the crucial 25,000 threshold and the BSE Sensex dropping over 260 points from session highs, weighed down heavily by profit-taking across large-cap information technology counters.
The benchmark indices had started the trading week on an optimistic footing. The NIFTY50 opened 0.36% or 90 points higher at 25,076.40, improving on its previous close of 24,986.40. Simultaneously, the 30-share BSE Sensex started at 81,327.29, advancing 327.89 points or 0.40%. However, the initial momentum fizzled out quickly as institutional selling emerged in frontline tech names.
IT Pack Drags Dalal Street Lower
The technology basket emerged as the primary source of drag on frontline indices, with the Nifty IT index remaining under intense selling pressure throughout the morning.
Major IT Losers:
- HCL Technologies: Slumped 1.68%.
- Infosys: Dropped 1.49%.
- Tata Consultancy Services (TCS): Declined 1.21%.
Market analysts noted that ongoing adjustments around global technology demand, moderation in enterprise discretionary spending, and broader international cues have prompted investors to trim exposure to rich valuations in the software export pack.
Banking and Cyclicals Offer Mild Support
While tech shares applied downward pressure, select cyclical and rate-sensitive sectors displayed modest resilience to cap broader index losses.
Sectoral Performance Highlights:
- Nifty Private Bank: Advanced 0.62% in early trade.
- Nifty PSU Bank: Gained 0.60%, led by steady buying in state-owned lenders.
- Nifty Metal: Rose 0.26%.
- Nifty Auto & FMCG: Both traded marginally higher, advancing 0.10% each.
Market Outlook and Technical Levels
The pullback below 25,000 marks a continuation of choppy price action seen during the special Diwali Muhurat session, where the Nifty settled lower at 24,986.40 and the India VIX jumped past 18.
Market participants are closely tracking Foreign Institutional Investor (FII) flows, as foreign funds recently snapped a multi-day buying run. With the ongoing corporate earnings season delivering mixed signals across various sectors, analysts recommend monitoring the 24,900–24,850 band as an immediate technical cushion for the NIFTY50, while the 25,100–25,200 range remains a stiff hurdle on the upside.
