Final Trade: Sensex tumbles 1,200 points, Nifty slips below 23,600; IT stocks cushion the fall

The stock markets witnessed a sharp sell-off on Friday, with the Sensex plunging over 1,200 points and the Nifty slipping below the 23,600 mark. This came amid concerns over the U.S. Federal Reserve’s cautious stance on rate cuts for 2025.

Fed rate cut sparks volatility

In the previous session, the Fed announced a 25 basis points rate cut but scaled back its projections for 2025, forecasting only two cuts instead of the four anticipated in September. This tempered global market sentiment, leading to a sell-off across sectors.

Sectoral impact: IT and realty worst hit

The realty and IT sectors bore the brunt of the decline, dragging market indices lower. Stocks in the financial and metal sectors also saw significant losses.

Top gainers and losers

Among Sensex stocks:

• Losers: Axis Bank, L&T, UltraTech Cement, ITC, JSW Steel, and Tata Steel opened sharply lower.

• Gainers: NTPC, TCS, Bajaj Finance, Asian Paints, and Bharti Airtel showed resilience with minor gains.

IT stocks offer a silver lining

Indian IT majors like TCS, Infosys, and Wipro gained up to 1 per cent, buoyed by Accenture’s positive Q1 results. The U.S.-based IT giant exceeded profit and revenue expectations, boosting sentiment for the sector.

Market outlook

The sharp correction reflects investor caution amid mixed global cues. Analysts suggest that the IT sector could continue to see support, while volatility in other sectors might persist.