Markets Edge Lower as IT Stocks Slide on Wipro's Revenue Warning
At 9:15 a.m. IST, the Nifty 50 was trading 0.3 per cent down at 23,368.55, while the BSE Sensex declined 0.24 per cent to 76,868.4.
Market Update at 09:30 AM: India’s key benchmark indices opened slightly lower on Thursday, mainly weighed down by losses in IT stocks following Wipro’s weak revenue outlook for the April-June quarter amid global tariff concerns.
At 9:15 a.m. IST, the Nifty 50 was trading 0.3 per cent down at 23,368.55, while the BSE Sensex declined 0.24 per cent to 76,868.4.
Wipro shares dropped 5.1 per cent after the company missed revenue expectations for the fourth quarter and projected a 1.5 per cent to 3.5 per cent revenue decline in the current quarter, pulling the Nifty IT index down by 1.4 per cent. Shares of Infosys, which is set to report earnings post-market hours, also slipped 1.1 per cent.
Out of the 13 key sectoral indices, eight were trading in the red during early hours. Broader market indices such as the Nifty Smallcap and Nifty Midcap slipped around 0.2 per cent each.
This dip comes after a strong three-session rally, during which the Nifty 50 and Sensex posted gains of 4.6 per cent and 4.3 per cent, respectively.
Pre-Market Update at 8:00 AM: Indian stock market indices, Sensex and Nifty 50, are expected to open lower, as indicated by a 90-point drop in the Gift Nifty compared to the previous close.
This is influenced by weak global cues, particularly from the US, where markets saw sharp declines. The Dow Jones dropped 1.73 per cent, the S&P 500 fell 2.24 per cent, and the Nasdaq lost 3.07 per cent. These declines followed comments from Federal Reserve Chair Jerome Powell, signaling concerns over the US economy’s slowing growth and indicating no immediate changes to interest rates.
US-China trade tensions worsened as China imposed new tariffs on US exports, raising them to 245 per cent, up from 145 per cent. In economic data, US retail sales rose by 1.4 per cent in March, exceeding expectations, while manufacturing output grew by 0.3 per cent for the same month.
Asian markets showed a mixed trend, with Japan’s Nikkei and South Korea’s Kospi posting gains, while Hong Kong’s Hang Seng index indicated a weaker start.
In India, equities closed higher on April 16, marking their third consecutive day of gains. The Sensex rose by 309 points to 77,044.29, and the Nifty 50 gained 108.65 points, finishing at 23,437.20. Gold prices continued their upward momentum, reaching a new all-time high of $3,357.40 per ounce.
On the institutional front, FIIs were net buyers, purchasing Rs 3,936.42 crore worth of shares, while DIIs net sold Rs 2,512.77 crore. Stocks banned for trading in the F&O segment on April 17 include Birlasoft, Hindustan Copper, Manappuram Finance, IREDA, and NALCO.
Disclaimer: The article is for informational purposes only and not investment advice.