Sensex Drops Nearly 700 Points As IT Stocks Drag Markets Lower
New Delhi, May 12: Indian equity markets opened sharply lower on Tuesday, with benchmark indices Sensex and Nifty50 witnessing broad-based selling pressure led by weakness in IT and banking stocks. Investor sentiment remained cautious amid global uncertainty and risk-off trading in technology counters.
Benchmark Indices Open In Deep Red
The BSE Sensex fell over 680 points in early trade, slipping to around 75,335, while the NSE Nifty50 declined nearly 184 points to trade near 23,632. The sharp opening decline reflected widespread selling across key sectors.
The biggest pressure on the market came from the information technology sector. The Nifty IT index dropped nearly 3%, making it the worst-performing sector of the day.
Major IT stocks such as Tata Consultancy Services, Infosys, and HCL Technologies fell as much as 3.3% in early deals, weighing heavily on overall indices.
Broader Markets Also Weak
Selling was not limited to large-cap stocks. Mid-cap and small-cap indices also came under pressure:
- Nifty Midcap 100 slipped nearly 1%
- Nifty Smallcap 100 declined over 1.3%
Volatility in the market increased as India VIX rose to 18.64, indicating heightened investor fear and uncertainty.
Banking And Realty Stocks Under Pressure
Banking stocks also weakened, with the Nifty Bank index falling around 0.7%. Private sector lenders such as HDFC Bank and ICICI Bank were among the major losers.
Real estate and media stocks also saw selling pressure during early trade, adding to the overall negative sentiment.
In contrast to broader weakness, metal stocks showed resilience. The Nifty Metal index traded marginally higher, offering limited support to the otherwise weak market setup.
Global Cues Weigh On Sentiment
Analysts attributed the decline to a combination of global market volatility, concerns over economic growth, and cautious investor positioning in technology stocks. Broader risk aversion in global equities also contributed to selling pressure in Indian markets.
