Stock Market Update: Nifty Breaks Below 25,000 on Expiry Day; IT Stocks Lead Sell-Off
Indian equities witnessed sharp weakness on Thursday, with the Nifty 50 failing to hold the crucial 25,000 mark and closing at 24,900, down on a weaker note. Markets consolidated around 25,000 for nearly an hour in the morning session but slipped sharply post 1 PM, driven largely by a heavy sell-off in IT stocks.
The broader market mirrored the fall, with midcap and smallcap indices also cracking sharply, while the Sensex too ended at the day’s low. On the sectoral front, the IT pack remained under severe pressure, with TCS hitting a three-year low and continuing to trade weak.
Global & Derivatives Cues
Weak sentiment was visible in global markets as well, with U.S. indices trading lower. Gift Nifty’s second session was down by nearly 49 points. Being expiry day, volatility spiked in the second half of trade, intensifying the sell-off.
Investors now await Accenture’s quarterly results, where guidance on revenue, growth outlook, and hiring plans will be closely tracked, especially given Accenture’s significance for the global IT services sector.
FIIs & DIIs Activity
As per NSE data, foreign institutional investors (FIIs) sold shares worth over ₹5,000 crore, while domestic institutional investors (DIIs) absorbed much of the selling through matching inflows. Despite this, the scale of FII outflows triggered a steep decline, leaving Nifty 50 vulnerable.
Technical Picture
On the daily chart, Nifty 50 breached its neckline support and slipped below the 20-day exponential moving average, with no major support visible until 24,600 levels. The RSI has also weakened significantly, pointing to further downside risks.
The Bank Nifty showed relative strength but remained under pressure, trading below both its 20-day and 50-day moving averages, with RSI dipping under 50 — indicating weakness.
Key Stock Movers
Top Losers (Nifty 50): Trend (–3%), Tata Motors (–3%), TCS (–2.5%), Power Grid, and Asian Paints.
Top Gainers (Nifty 50): Bharat Electronics (BEL), Hero MotoCorp, Axis Bank, Hindalco, and ONGC.
Mid & Smallcap Action: Hindustan Copper and Netweb were among top gainers, while ABRL, Home First, and RK Forgings corrected.
Over the past week, Tata Investment rose 19%, Netweb gained 23–24%, while Adani Power and Anant Raj also outperformed. On the flip side, DCM Shriram fell 15.5%, with Kalyan Jewellers and Trend under pressure.
Corporate Developments
Polycab India: Promoters sold 1.5% stake worth ₹1,740 crore around resistance levels, with JP Morgan and Morgan Stanley emerging as key buyers.
Novoco Vistas: Received a GST demand and penalty totaling ₹113 crore, dragging the stock 2% lower.
LIC: Government plans to divest 3–5% stake, appointing merchant bankers including Motilal Oswal and IDBI Capital. The stock continues to struggle around levels last seen in early 2024.
HAL (Hindustan Aeronautics): Secured a massive ₹62,370 crore order from the Defence Ministry for manufacturing LCA Mark-1A aircraft. Despite the big order, shares rose only 1%, as much of the defense order-led optimism is already factored in.
Siemens: Prabhudas Lilladher issued a target of ₹3,360, highlighting India’s growing industrial and energy transition opportunities.
HPL Electric: Won a ₹65 crore order for smart meters. However, analysts believe much of the smart meter theme is already priced in, with shares having surged from ₹70 two years ago to nearly ₹450 now.
Broader Market Trends
Weekly outperformers: Adani Enterprises (+7%), Axis Bank, JSW Steel, Maruti Suzuki, Ashok Leyland.
Weekly underperformers: Tata Motors (–8%), TCS, Tech Mahindra, Wipro.
Macroeconomic Context
Despite rate cuts from the U.S. Fed, GST reductions, and lower income tax rates, Indian equities are failing to find sustainable support. Heavy IPO activity continues to drain liquidity from secondary markets, further weighing on sentiment.
Political & Policy News
Prime Minister Narendra Modi is set to launch a women empowerment scheme, transferring ₹1 lakh each to 7.5 million women in Bihar, a move being positioned as a major welfare initiative.
