Indian Equities Slide in Early Trade as IT Sector Weighs on Indices

Indian benchmark equity indices opened the intraday session on a subdued note, extending losses as broad-based selling pressure gripped domestic bourses. The NIFTY 50 declined by 187.40 points or 0.77% to rest at ₹24,284.30, while the BSE SENSEX dropped 568.28 points or 0.73% to settle at ₹77,585.97. Sectoral performance was markedly uneven; NIFTY BANK showed resilience with a modest gain of 75.80 points (+0.13%) to reach ₹57,522.05, whereas the NIFTY IT index faced severe headwinds, plunging 752.70 points (-2.37%) to ₹31,070.45. Meanwhile, the NIFTY MIDCAP 100 retreated 429.25 points (-0.58%) to ₹74,221.60, and market volatility represented by the India VIX eased 2.33% to 11.96.

Domestic sentiment mirrored cautious trading across international markets, heavily influenced by persistent worries regarding sticky global inflation and US Federal Reserve policy expectations. Brent crude oil futures climbed 1% toward $89.80 per barrel, heightening cost pressures for import-dependent emerging economies like India. Investors remained tentative ahead of crucial US Consumer Price Index (CPI) data releases, which are expected to dictate the trajectory of global interest rates and impact foreign institutional capital flows into domestic equities.

Domestic factors exacerbated the cautious tone, notably the depreciation of the Indian Rupee against the US dollar, which slipped 6 paise to 95.42. The currency weakness disproportionately impacted export-heavy sectors like technology, explaining the sharp correction witnessed in IT equities. While banking stocks demonstrated defensive strength, broader selling across midcap and frontline counters reflected sustained profit-booking by institutional participants following recent market peaks.