Market Wrap: IT stocks drag D-Street lower; Sensex sheds 271 pts, Nifty below 25,000
Indian benchmark indices Sensex and Nifty closed lower in a subdued session on Monday, dragged down by losses in information technology stocks after Moody's downgraded the U.S. government's credit rating.
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Indian benchmark indices Sensex and Nifty closed lower in a subdued session on Monday, dragged down by losses in information technology stocks after Moody's downgraded the U.S. government's credit rating.The BSE Sensex shed 271.17, or 0.33%, to close at 82,059.42, while the NSE Nifty declined 74.35 points, or 0.30%, to settle at 24,945.45.Among the 30-stock Sensex pack, shares of Infosys Reliance Industries , and Eternal were among the top losers , falling between 0.7% and 3%.Global equities slipped and U.S. Treasury yields rose after Moody's downgraded the U.S. government's credit rating to "AA1" from "AAA," raising concerns over debt levels and widening deficits.Domestically, IT stocks—heavily reliant on U.S. revenue—were the biggest drag on benchmarks. The Nifty IT index fell 1.3% following the downgrade, which cited elevated debt and interest costs "significantly higher than similarly rated sovereigns."Defence stocks also declined as investors booked profits after last week's sharp gains. Shares of Cochin Shipyard Mazagon Dock Shipbuilders , and Hindustan Aeronautics Ltd HAL ) dropped as much as 4%, pausing a strong rally driven by optimism over new orders and the success of Operation Sindoor.In contrast, broader markets outperformed. The Nifty Smallcap 100 rose 0.5%, while the Nifty Midcap 100 edged up 0.1%. Both indices have risen for six straight sessions, with mid-caps nearly erasing year-to-date losses. The Nifty and Sensex are up 5.5% and 5%, respectively, in 2025 so far.Among individual stocks, Vodafone Idea fell 8.7% after moving the Supreme Court to challenge the government's rejection of its plea to waive over $5 billion in interest and penalties on statutory dues.Meanwhile, Divi's Laboratories jumped 4.8% after reporting a stronger-than-expected fourth-quarter profit.
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