Tech stocks drag markets lower; Cipla, L&T buck trend

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Indian equity benchmarks extended their morning losses in afternoon trading on Thursday, with technology stocks leading the decline amid continued foreign investor selling and mixed global cues.

The BSE Sensex fell 471.85 points or 0.59 per cent to 79,470.33, while the NSE Nifty declined 113.25 points or 0.47 per cent to 24,227.60 as of 12:32 pm. The broader market showed mixed trends, with 2,431 stocks advancing and 1,319 declining on the BSE.

IT stocks faced significant selling pressure, with Tech Mahindra emerging as the top Nifty loser, dropping 3.93 per cent. Other major IT firms also declined, including HCL Technologies (-2.73 per cent), TCS (-2.59 per cent), and Wipro (-2.41 per cent). Shriram Finance fell 2.55 per cent.

However, pharmaceutical major Cipla surged 10.24 per cent, extending its morning gains to emerge as the top gainer. Infrastructure giant Larsen & Toubro continued its strong performance, rising 6.93 per cent. Other notable gainers included Hero MotoCorp (2.17 per cent), ONGC (2.01 per cent), and Dr. Reddy’s Laboratories (1.34 per cent).

Sectoral indices showed weakness, with Nifty Bank dropping 331.50 points or 0.64 per cent to 51,476.00, while Nifty Financial Services declined 170.25 points or 0.71 per cent to 23,867.15. The Nifty Midcap Select index experienced a sharper fall of 1.14 per cent.

Market breadth remained positive despite the index declines, with 143 stocks hitting 52-week highs compared to 20 stocks touching 52-week lows. Additionally, 372 stocks hit the upper circuit while 117 stocks touched the lower circuit.

The morning’s cautious start, which saw marginal gains, gave way to increased selling pressure as foreign institutional investors (FIIs) continued their selling streak.

Market analysts maintain their range-bound outlook for the Nifty with resistance at 24,500, as investors navigate through increased volatility and mixed economic signals from global markets, particularly the United States.