Sensex-Nifty Decline On IT Selloff & Foreign Fund Outflows, Weak Earnings Add Pressure

Key Highlights:

- Sensex down 375 pts; Tech Mahindra drops 3 percent after Q1 earnings.

- FIIs sell Rs 1,858 crore amid trade talk uncertainty.

- Tata Group stocks show resilience with gains in Tata Motors, Titan.

Mumbai: Indian equity benchmarks ended lower on Thursday, dragged by selling in IT stocks and persistent foreign fund outflows. The market remained cautious ahead of the outcome of the ongoing US-India trade talks, adding to investor nervousness.

The BSE Sensex fell 375.24 points or 0.45 percent to settle at 82,259.24, after declining as much as 415.21 points during the session. The NSE Nifty slipped 100.60 points or 0.40 percent to close at 25,111.45.

Market sentiment took a hit from weak June quarter earnings and sustained selling pressure in the information technology (IT) space. Tech Mahindra led the slide, dropping nearly 3 percent after reporting a 34 percent year-on-year increase in consolidated net profit to Rs 1,140.6 crore. Despite the growth, the results failed to meet investor expectations.

Other IT heavyweights including Infosys, HCL Tech, Tata Consultancy Services, and Larsen & Toubro also registered losses. Axis Bank was among the notable laggards from the banking sector.

In contrast, select Tata Group stocks such as Tata Steel, Trent, Titan, and Tata Motors managed to stay in positive territory, offering some support to the indices.

Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 1,858.15 crore on Wednesday, as per exchange data. Analysts attribute this outflow to uncertainty surrounding the US-India trade deal, elevated valuations in large-cap stocks, and cautious investor sentiment amid lackluster earnings in Q1 FY26.

"Indian equity benchmarks ended marginally lower as investors exercised caution amid subdued Q1 earnings announcements, particularly in the technology and banking sectors," said Vinod Nair, Head of Research at Geojit Financial Services. He added that positive developments in the US-India trade dialogue could improve sentiment.

Globally, Asian markets posted mixed trends — South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s Composite Index closed higher, while Hong Kong’s Hang Seng ended in the red. European markets were trading firm, while US markets had closed on a positive note the previous day.

Meanwhile, Brent crude prices saw a marginal decline of 0.06 percent to USD 68.49 per barrel.

(With PTI Inputs)