Indian benchmark indices Sensex and Nifty tumbled on November 7, extending losses for the third consecutive session, weighed down by sharp declines in IT stocks following an AI-led rout in global markets. The mood across Dalal Street turned bearish as all sectors and broader markets traded deep in the red.
Around morning, the Sensex had dropped 543.83 points or 0.65 percent to 82,767.18, while the Nifty slipped 159.30 points or 0.62 percent to 25,350.40. Market breadth was weak, with 857 stocks advancing, 2,107 declining, and 122 remaining unchanged.
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All sectors plunged in the negative territory in early trade, with Nifty IT leading the loss amidst weakness in shares of Coforge, LTIMindtree, HCL Technologies, Mphasis, Persistent Systems declining in the range of 1-3 percent.
Nifty Consumer Durables also came under pressure after Amber Enterprises slumped 12 percent following a disappointing September-quarter performance. The company posted a net loss of Rs 32.9 crore compared to a net profit of Rs 19.2 crore a year earlier, while margins contracted by 120 basis points.
Broader markets underperformed largecaps, with midcap and smallcap indices falling up to 1 percent. A mild uptick in volatility indicated growing nervousness among investors.
With today’s decline, the Nifty is on track to register a 1.5 percent weekly fall, marking its second consecutive week of losses.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that the sustained selling by foreign institutional investors (FIIs) and their move toward cheaper markets has encouraged them to continue shorting Indian equities. “Short covering can lead to a trend reversal, but there are no immediate triggers for that in sight. However, markets have an uncanny ability to surprise,” he noted.
He added that this phase presents an ideal opportunity for investors to rebalance portfolios toward fairly valued largecaps, especially in banking and pharmaceutical sectors, where growth prospects remain strong despite the current correction.
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