IT rout wipes out Rs 3 lakh crore as Sensex slumps 1,439 points – Firstpost

Indian equities ended the week in the red as a sharp 8 per cent slump in IT stocks wiped out nearly Rs 3 lakh crore in market capitalisation

After flirting with record territory at the start of the week, Indian equities reversed course sharply, with benchmark indices ending decisively in the red as a brutal sell-off in information technology stocks overshadowed gains in banks and defence counters.

The BSE Sensex closed at 82,626.76 on Friday, marking a weekly decline of 1,438.99 points, or 1.71 per cent, from Monday’s close of 84,065.75. The Nifty 50 too slipped below the 25,500 mark in the final session, ending at 25,471.10, down sharply for the week.

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From highs to sharp reversal

The week began on a firm footing. On Monday the Sensex had reclaimed the 84,000 mark, buoyed by a more than 7 per cent rally in State Bank of India and broad-based buying in PSU banks and metal stocks. Optimism lingered into Tuesday, when the index climbed further to 84,273.92, its highest closing level of the week.

However, the undertone turned cautious from Wednesday onwards. While benchmarks ended largely flat mid-week, heavy selling in IT majors began to weigh on sentiment. By Thursday, the pressure intensified, and Friday’s 1,048-point plunge sealed the worst single-day fall in recent weeks.

The Sensex has now fallen for three consecutive sessions, erasing all early-week gains and ending nearly 1 per cent lower on a weekly basis. Volatility spiked as market breadth deteriorated sharply, particularly in the last two sessions.

IT stocks bear the brunt

The defining theme of the week was the sharp correction in technology stocks. The Nifty IT index tumbled nearly 8 per cent, marking its steepest weekly fall in over a year. In market capitalisation terms, the sector saw an erosion of nearly Rs 3 lakh crore within five trading sessions.

Heavyweights such as Tata Consultancy Services, Infosys, HCL Technologies and Tech Mahindra witnessed persistent selling pressure. On Thursday alone, several frontline IT stocks dropped between 5 and 6 per cent, triggering a ripple effect across the broader market.

The IT rout not only dragged the benchmarks lower but also dented investor confidence in a sector that has historically acted as a defensive play during periods of global uncertainty. The scale of the decline suggests aggressive profit-booking and concerns over earnings visibility.

Defence, PSU Banks Buck the Trend

Amid the carnage in technology counters, select domestic-facing sectors offered resilience. Defence and PSU banking stocks emerged as the standout performers, rising nearly 4 per cent each during the week.

State Bank of India remained in focus after its early-week surge, while Bharat Electronics and other defence-linked counters attracted steady buying interest.

Select financials such as Bajaj Finance and ICICI Bank also provided intermittent support, though their gains were insufficient to offset the drag from IT and FMCG heavyweights in the latter half of the week.

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