The sell-off in the Indian stock market further intensified in Friday’s session as tech stocks faced another round of selling. Mounting concerns that advanced AI tools could disrupt core areas of the technology and software business, along with fading hopes of a near-term US rate cut, led key indices to close with losses of over 1%.
The Nifty 50 sank 1.3% to the 25,471 level, while the S&P BSE Sensex dived 1.25% to 82,626 points. The broader markets closed with even bigger losses, as the Nifty Midcap 100 index and the Nifty Smallcap 100 fell over 1.7%.
There was widespread selling across technology stocks, with four of the 10 constituents of the Nifty IT index — Infosys, Oracle Financial Services, TCS, and Wipro — slipping to fresh one-year lows.
Reflecting the weakness among heavyweights, the tech gauge index fell 1.44%. The decline has also led to a 14% drop in February so far.
The rout in tech stocks began earlier this week after Anthropic, part of a growing wave of AI startups, announced the launch of a new artificial intelligence tool enabling automated tasks across legal, sales, marketing, and data analysis — key areas for software firms.
Alongside technology, metal stocks also saw a sharp knock, weighed down by a strengthening US dollar, sending the Nifty Metal index down 3.31%, while the Nifty Realty index fell 2.23%.
Other sectors such as Nifty FMCG, Nifty Oil and Gas, Nifty Consumer Durables, Nifty Chemicals, and Nifty Auto also fell over 1%.
Muthoot Finance, Cohance lead Nifty 500 losers
Muthoot Finance led the top laggards, with the stock crashing 11.8% to ₹3,587 apiece even after the company reported a healthy performance in the December quarter.
Cohance Lifesciences was another among the worst performers in the Nifty 500, plunging 11.1% to ₹312 apiece.
Extending losses to a third straight session, Blue Jet Healthcare shares fell another 10% to ₹397.30 apiece. Birlasoft also remained under pressure for the third consecutive session, declining 8% to ₹398.75 apiece.
Alkem Laboratories, Praj Industries, Firstsource Solutions, Eris Lifesciences, 3M India, Adani Power, and NMDC were among the stocks that fell over 6%.
Meanwhile, all major metal stocks closed with deep losses, led by Hindalco Industries, which fell 6% to ₹905.8 apiece. National Aluminium, Hindustan Copper, Hindustan Zinc, Vedanta, Jindal Stainless, and Gujarat Mineral Development Corporation declined between 5.4% and 4%.
Engineers India, Linde India buck broader weakness
Despite the widespread sell-off, some stocks bucked the trend. Engineers India surged 11.2% to ₹201 as investors reacted positively to the company’s December quarter results. Linde India shares closed 7% higher at ₹6,900 apiece, settling at a seven-month high.
Maintaining its momentum, Signatureglobal shares gained another 6% to ₹1,040 apiece.
Textile stocks saw renewed buying interest in trade, with Vardhman Textiles, Aditya Birla Fashion, and KPR Mill surging 5.5%, 5.4%, and 3.6%, respectively.
Other stocks from the Nifty 500 basket, including Hexaware Technologies, TBO Tek, Kirloskar Oil Engines, Schneider Electric, and Godrej Agrovet, also closed higher with gains of over 3%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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