New Delhi: The Indian IT sector is facing a downturn ahead of the upcoming election. Last week, Foreign Institutional Investors (FIIs) sold ₹7,754.40 crore worth of stocks, while Domestic Institutional Investors (DIIs) bought ₹14,935.15 crore worth.
The Indian stock market lost nearly 2 percent over the past week, reversing the previous week’s gains. This drop happened due to the anticipation of election exit poll results, GDP data, the expiration of May futures and options (F&O), and continued selling by FIIs. However, mixed corporate earnings, positive monsoon forecasts, and buying by DIIs helped reduce the losses.
The Nifty50 index dropped by 426.4 points (1.85 percent) to close at 22,530.70, while the BSE Sensex fell by 1,449.08 points (1.92 percent) to finish at 73,961.31. The BSE Large-cap Index decreased by 2 percent, with Info Edge India, Avenue Supermarts, Hindustan Zinc, Tech Mahindra, and Zydus Lifesciences losing between 7 and 10 percent. On the other hand, Adani Power, Adani Total Gas, One 97 Communications (Paytm), Divis Laboratories, and Mankind Pharma gained 4 to 7 percent.
The BSE Mid-cap Index went down by1.5 percent, with companies like Alkem Laboratories, APL Apollo Tubes, Schaeffler India, Indian Railway Catering & Tourism Corp, Deepak Nitrite, Steel Authority of India, and Solar Industries India seeing losses. However, Emami, Glenmark Pharma, 3M India, Torrent Power, GlaxoSmithKline Pharmaceuticals, and Samvardhana Motherson International saw gains.
The BSE Small-cap Index also fell by 1.5 percent. Schneider Electric Infrastructure, IFB Industries, Sadhana Nitrochem, 63 Moons Technologies, MTAR Technologies, Taj GVK Hotels & Resorts, and Sarda Energy and Minerals dropped by 15 to 21 percent. Meanwhile, ZF Commercial Vehicle Control Systems India, Waaree Renewable Technologies, RattanIndia Power, Johnson Controls-Hitachi Air Conditioning India, Techno Electric & Engineering Company, and Jubilant Industries gained more than 20 percenteach.
In terms ofmarket value, Reliance Industries lost the most, followed by Tata Consultancy Services, Infosys, and Maruti Suzuki India. In contrast, HDFC Bank, Larsen & Toubro, and IndusInd Bank gained the most market value.
Except for the Nifty PSU Bank index, all other sector indices ended negatively, with the Information Technology index down by 4.2 percent. The Nifty Energy index fell by 3.3 percent, the Nifty Oil & Gas index dropped by 3 percent, and the Nifty FMCG index decreased by 2.4 percent.
Throughout the week, the Indian rupee lost its previous gains, ending 37 paise lower at 83.46 on May 31, compared to 83.09 on May 24.
By Ansh Singh
