Stock market crash: Benchmark equity indices Sensex and Nifty 50 ended their five-session winning streak on Friday, June 19, amid a sharp selloff in information technology stocks following Accenture’s decision to lower its revenue growth outlook. Investor sentiment was further weighed down by weak global cues, renewed foreign institutional investor (FII) selling and geopolitical uncertainties.
Sensex ended 607 points or 0.78% lower at 76,802.90, while Nifty shed 154.90 points or 0.64% to settle at 24,013.10
In intra-day deals, the Sensex plunged more than 900 points to fall below the 76,500 mark, while the Nifty 50 dropped over 200 points, slipping below 23,950. The decline came after benchmark indices had rallied nearly 5% over the previous five trading sessions.
The broader markets, however, outperformed with the Nifty Midcap 100 and Nifty Smallcap 100 indices up 0.22% and 0.42%, respectively.
Among sectoral indices, Nifty IT emerged as the biggest loser, tumbling more than 3.6%. Nifty Auto, Nifty Bank, Nifty Oil and Gas were also in the red today. In contrast, Nifty Media, Nifty Pharma, Nifty Healthcare and Nifty Chemicals traded in positive territory.
Infosys, HCLTech, Tech Mahindra and TCS were the biggest drags on the Sensex, falling 2.5-6.5% each. HDFC Bank also fell over 2% while Reliance declined more than 1%. Bucking the broader market trend, Eternal, Bharti Airtel, PowerGrid and Trent were the top gainers.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the prevailing market structure suggests that buying on dips could remain an effective strategy. He noted that the market’s underlying strength is being supported by improving macroeconomic conditions, aided by the sharp correction in crude oil prices.
Mukesh Ambani-led oil-to-telecom conglomerate, Reliance Industries (RIL), held its 49th Annual General Meeting (AGM) on 19 June. At the AGM, on expected lines, Ambani revealed that the DRHP for the proposed Jio IPO would be filed today, and reiterated RIL’s focus on artificial intelligence (AI)
Here are the key factors pushing the stock market lower
1) Heavy selloff in IT stocks: IT majors such as Infosys, TCS, Tech Mahindra and HCLTech plunged as much as 8% after Accenture shares fell 11% on Wall Street. The global consulting giant revised its FY26 revenue growth guidance to 3-4%, compared with its earlier forecast of 3-5%.
Accenture also projected fourth-quarter revenue of $17.75-$18.4 billion, below analysts’ expectations of $18.47 billion, according to LSEG data.
The weaker guidance reignited concerns that enterprises remain cautious about discretionary spending on IT consulting and digital transformation initiatives despite continued investments in artificial intelligence and cybersecurity. Given the significant exposure of Indian IT companies to the US market, concerns over slower discretionary spending triggered a sharp selloff in the sector.
2) FIIs turn net sellers: After three consecutive sessions of net buying, foreign investors turned net sellers on Thursday, offloading shares worth ₹1,025 crore, according to provisional NSE data.
However, Vijayakumar said the moderation in FII selling appears to be evolving into a trend that could continue for some time. He added that strong domestic institutional investor (DII) buying has the potential to offset FII outflows and provide resilience to the market.
During the first two weeks of June, FIIs remained sellers, pulling out more than ₹62,853 crore. Data also showed that cumulative withdrawals by foreign portfolio investors (FPIs) from Indian equities have climbed to ₹2.87 lakh crore so far in 2026.
3) Weakness in Asian markets: Indian equities largely mirrored losses across Asian markets. South Korea’s Kospi and Hong Kong’s Hang Seng index fell nearly 2% each, while Japan’s Nikkei opened on a subdued note.
Although Wall Street indices ended higher overnight, Dow Jones futures were trading lower, indicating a weak start for US markets later in the day.
4) US-Iran peace talks called off: Planned talks between US and Iranian negotiators aimed at ending the Middle East conflict will not take place on Friday after US Vice President JD Vance shelved plans to travel to Geneva.
“The logistics of these negotiations have never been simple or predictable,” a White House spokesperson said on Thursday night, adding that Vance and the US delegation were prepared to depart once arrangements had been finalised.
Meanwhile, Israel has distanced itself from the US-Iran agreement and continued military action against the Iran-backed Hezbollah group in Lebanon, raising fresh doubts over the durability of the accord.
5) Technical view: Rajesh Palviya, Head of Research at Axis Direct, said the broader market trend remains positive as long as the Nifty stays above the key 24,000 level. According to him, 24,000 should act as immediate support, while the 24,250-24,400 zone remains a crucial resistance area.
“A decisive breakout above 24,400 could trigger fresh momentum and short covering, paving the way for higher levels. On the downside, any sustained breach below 24,050 may lead to profit booking towards 23,950, with the next support placed around 23,850. Overall, the strategy remains to buy on dips while the index holds above 24,000, as the medium-term bullish structure continues to remain intact,” he said.
Palviya reiterated that buying on dips remains the preferred strategy as long as the Nifty continues to hold above the 24,000 mark, with the medium-term bullish trend remaining intact.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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