IT indices top losers on NSE, BSE this week; Tata Elxsi gained 16%, Sterlite Tech fell 24%

Domestic equity markets closed on lower side on four out of five trading sessions this week. On Friday, Nifty slipped 0.79% and the Sensex dropped 0.72%amid weak global cues and Quarter 3 earnings. The two indices closed with loss of 139.85 points to 17,617.15 and 427.44 points to 59,037.18. The broader Nifty50 and Nifty Bank witnessed lower lows for four consecutive sessions this week.  

Almost all sectors were seen under pressure, as excluding FMCG, all sectors ended in the red as IT continued to drag the market even on Friday.    

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Among, other factors were FPI booking profits across large-caps and select high quality mid-caps, rising oil and input prices coupled with a moderating rural economy, rise in US bond yields and the expected tightening of monetary policy by Central Banks weighed on investor sentiments as markets traded volatile.    

"Indian equity markets corrected this week in line with the global market sell-off. The rise in US bond yields and the expected tightening of monetary policy by Central Banks is weighing on investor sentiments.

The 10-year US treasury yield moved higher this week, hitting 2 years high," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

For the week ended January 21, 2022, the Nify50 ended 4.21% lower, the S&P BSE Sensex corrected 3.6%, Nifty Midcap 100 declined 5%, Nifty Smallcap dipped 4.4% and Nifty500 slipped 3.85% in the last five trading sessions.    

Sector-wise, power sector was the only silver lining as Nifty Energy grew by 0.72% in a week dominate by bears. IT declined the most as the index dipped as much as 7.15% on back of mixed q3 earnings for the week ended January 21. Pharma was another leading laggard with 5.04% dip. Nifty Realty corrected 3.62%, Nifty Financial Services shed 3% and PSU Bank ended the week lower by 2.75%.  

On the BSE too, S&P BSE Information Technologies declined 6.5%, followed by S&P BSE Teck (6.4%), S&P BSE Telecom 5.9%, S&P BSE Healthcare 5.25 and S&P BSE Midcap Select Index was down 4.7% this week.  

Hero MotoCorp was the leading gainer for this week on the Nifty. Powergrid gained 3.5%, ONGC added 2% and Maruti settled with 1.25% gain this week. With 13% losss, HCL Tech was the top drag this week on the Nifty. Bajaj Finserv dipped 10%, Divi's Laboratories and Tech Mahindra slid 9% each and Shree Cement with 8% drop were other top losers on the index.    

Nifty 500, which declined 3.49% in the last five trading sessions, saw Tata Elxsi and Angel One emerging as the lead gainers with 16% and 14.4% gains this week.    

Sterlite Technologies Ltd was the biggest loser on the index as the tech share tanked 24%. Sterlite Tech was followed by Hikal Ltds, which shed 18%, Dr Lal Pathlabs and Info Edge declined 17% each for the week ended January 21.      

"Till Nifty remains below 17,700 zones, weakness could be seen towards 17,500 and 17,350, while hurdles exist at 17,777 and 17, 950 marks," said Chandan Taparia Vice President, Analyst-Derivatives, Motilal Oswal Financial Services Limited.