Sensex, Nifty Slip Amid IT Sector Weakness and Trade Fears

Indian equities opened the week under pressure; Sensex closed 247 points lower and Nifty fell below 25,100. The decline stemmed from weak IT sector earnings—specifically TCS reporting slower growth—which triggered a sell-off in technology stocks like Infosys and HCL. The downturn was compounded by global trade anxiety, prompting foreign institutional investors to reduce exposure. Surprisingly, mid and small caps showed relative resilience, indicating investor preference for domestically-oriented themes in times of global uncertainty.

This rotation reflects a strategic rerating of sector bets. Defensive plays—banking, consumer staples, financials—are absorbing risk repricing, while discretionary and export-oriented heavyweight stocks take a back seat. For investors, the key question is whether this constitutes a temporary rebalancing or the beginning of a structural shift in FII confidence. The rupee’s depreciation to 85.99 per USD adds pressure but also supports exporters over time.

Looking ahead, India’s markets will respond to two variables: resolution or escalation of global trade policy, and upcoming corporate earnings for Q1. With domestic economic growth remaining steady and capital-hungry sectors like consumer and infra poised for support, short-term volatility may offer selective buying opportunities. But broader stability will depend on easing trade concerns and sustaining foreign inflows in the absence of headline shocks.