Stock market closing: Nifty around 15, 800, Sensex drops over 1400 points; IT declines nearly 6%

Dragged by IT and metal stocks, the domestic equity market ended nearly two and half per cent lower amid inflation fears. Benchmarks Nifty50 dropped below 15,900, while the 30-share Sensex ended lower by around 1400 points. Amid profit booking, in the broader market, Nifty midcap and small cap too corrected around two and half per cent.  

The massive decline in IT shares came on the back of JP Morgan report, which downgraded the sector to "underweight".  

"Soaring inflation, supply chain issues and the hit from the Ukraine war will bring an end to the growth boom India`s IT services industry enjoyed during the pandemic," said J.P.Morgan in its report. 

The $194-billion sector whose software services helped businesses adopt to pandemic-era practices of online shopping and remote working is facing a demand slowdown this year as employees return to offices and the Russia-Ukraine war weighs on spending from clients in Europe, it added