Sensex tanks 520 pts as markets snap 9-day rally

Mumbai: Equity benchmark indices Sensex and Nifty buckled under selling pressure after nine-session rally on Monday, as massive sell-off in IT, tech and telecom counters unnerved investors. Intense selling in Infosys, which fell over nine per cent after lower-than-expected revenue guidance for FY24, and HDFC twins also pulled the benchmarks down.

The 30-share BSE Sensex tanked 520.25 points or 0.86 per cent to settle at 59,910.75. During the day, it plunged 988.53 points or 1.63 per cent to 59,442.47. The broader NSE Nifty fell 121.15 points or 0.68 per cent to finish at 17,706.85. "The market responded negatively to the weak start of the earnings season by IT bellwether and their cautious outlook. On the global front, the US 10-year bond yield rose as solid US job data raised concerns over further rate hikes by the Fed. The earnings reports, primarily from the IT and banking sectors, will influence market trends in the coming days. We expect Nifty50 earnings to grow by 10 per cent in Q4 FY23, driven by banking and finance, auto, telecom, and FMCG," said Vinod Nair, head (research) at Geojit Financial Services.

"Indian equities ended lower led by weakness in the IT sector," said Mitul Shah - Head of Research at Reliance Securities. Foreign Portfolio Investors (FPIs) bought equities worth Rs 221.85 crore on Thursday, according to exchange data.