Nifty and Sensex tumble as IT stocks face sharp declines; Cipla shines with significant gains

Benchmark indices Nifty and Sensex fell further into negative territory, primarily due to a sharp downturn in IT stocks, influenced by disappointing U.S. economic data. As of noon, the Sensex was down by 424.10 points, or 0.53 per cent, at 79,518.08, while the Nifty slid 104.50 points, or 0.43 per cent, to 24,236.30. Despite the overall market gloom, Nifty Pharma and Healthcare indices managed to rise over a per cent, buoyed by key gains in Cipla, L&T, and ONGC.

Cipla's shares surged nearly 10% following the U.S. Food and Drug Administration's classification of its Goa facility as "Voluntary Action Indicated" (VAI), paving the way for crucial product launches like the generic version of Abraxane. L&T also saw a notable increase of 7% after reporting a better-than-expected 5% rise in net profit to ₹3,395 crore for the quarter.

The Nifty IT index emerged as the top loser, plummeting over 3% as major companies like Tech Mahindra, Wipro, TCS, HCL Tech, and Infosys struggled amid poor earnings reports from U.S. tech giants, including Meta Platforms and Microsoft.

Market analysts, like V K Vijayakummar of Geojit Financial Services, indicate a subdued outlook for the markets this Diwali, citing high valuations, continuous FII outflows, and slowing earnings growth as key concerns. The focus is shifting towards individual stock performance, with strong earnings rewarded and weak results leading to corrections.

Key movers:
- Nifty Gainers: Cipla, L&T, ONGC
- Nifty Losers: TCS, Infosys, Tech Mahindra
- Sensex Gainers: L&T, JSW Steel, Power Grid Corp
- Sensex Losers: Tech Mahindra, HCL Tech, TCS

The session also saw significant stock movements, with DCM Shriram shares soaring over 10% after reporting a 95% increase in net profit, while Biocon shares fell nearly 5.5% following a sharp decline in quarterly earnings.