Mumbai: Indian equity markets opened sharply lower on Friday, the final trading session of the week, as persistent foreign investor selling and growing concerns over the global IT sector weighed heavily on investor sentiment. Significant declines in major technology stocks added further pressure to the markets.

The 30-share BSE Sensex opened 557.12 points, or 0.71 percent, lower at 76,852.86, while the NSE Nifty fell 176.80 points to 23,991.20. With this decline, the Nifty slipped below the crucial psychological level of 24,000. In the previous trading session, the Sensex had closed at 77,409.98, while the Nifty ended at 24,168.00.

IT Stocks Under Heavy Selling Pressure

The biggest drag on the market came from the information technology sector. Indian IT stocks came under pressure after global technology services giant Accenture lowered its growth guidance, raising concerns about the outlook for the sector.

Infosys emerged as the worst-performing Sensex constituent, plunging more than 8 percent in early trade following a sharp decline in its American Depositary Receipts (ADRs) in the U.S. market. Other major IT stocks, including Tech Mahindra, Tata Consultancy Services (TCS), and HCLTech, also traded significantly lower.

Defensive and Banking Stocks Offer Some Support

Despite the broader market weakness, select banking and defensive stocks managed to post gains. ICICI Bank, Sun Pharmaceutical Industries, Power Grid Corporation of India, and Maruti Suzuki India were among the top gainers during early trading. ICICI Bank led the pack with a gain of approximately 0.29 percent.

Broader Markets Also Trade in the Red

The weakness was not limited to benchmark indices. Mid-cap and small-cap stocks also witnessed selling pressure. The BSE Midcap Index traded lower, while the Smallcap Index fell by more than 23 points to 8,609.57.

Market breadth on the NSE remained negative, with 1,498 stocks declining against 1,124 advancing stocks. Meanwhile, 105 stocks remained unchanged during early trade.

FII Selling Continues

Foreign Institutional Investors (FIIs) remained net sellers in the Indian market on June 18, offloading equities worth ₹1,025.20 crore. However, Domestic Institutional Investors (DIIs) provided support by purchasing shares worth ₹3,516.81 crore.

According to Hitesh Taylor, Research Analyst at Choice Equity Broking, foreign investors continue to maintain a cautious stance amid prevailing global uncertainties, leading to sustained selling activity in Indian equities.

Mixed Performance Across Asian Markets

Asian markets displayed a mixed trend on Friday. Investor sentiment improved globally following easing inflation concerns after the reported U.S.-Iran peace agreement.

• Japan’s Nikkei 225 traded 0.22 percent higher.
• Hong Kong’s Hang Seng Index declined 1.62 percent.
• South Korea’s KOSPI remained in positive territory.
• The Shanghai Stock Exchange remained closed for a holiday.

Outlook for Investors

Market experts believe that continued foreign fund outflows and challenges facing the global IT sector will play a key role in determining the market’s direction in the near term. While IT stocks may remain under pressure, strong buying by domestic institutional investors could help provide stability and support to the broader market.