Share Market Today: 'Black Friday' in the stock market! Sensex drops 850 points, Nifty also down 260 points

Share Market Today: The pressure on IT stocks is impacting stock market trading today. The Sensex has fallen 844.58 points, while the Nifty has also fallen 260.80 points.

 

Stock market shakes! Sensex and Nifty fall sharply.

 

Share Market Today: Today proved to be a 'Black Friday' for the Indian stock market. The massive fall in IT stocks on Thursday had such an impact that both the benchmark indices, the Sensex and Nifty, plunged. At around 9:45 am, the Sensex was trading 844.58 points, or 1.01 percent, lower at 82,830.34, while the Nifty fell 260.80 points, or 1.01 percent, to 25,546.40.

 

Indian equity benchmarks continued to decline on Friday, tracking weakness in global markets, as persistent selling in technology stocks weighed on investor sentiment.

The broader market also remained under pressure, with the Nifty Midcap index falling 1% and the Nifty Smallcap index falling 1.3%.

Big fall in IT stocks

Sectorally, the Nifty IT index saw a significant decline of 5%. Infosys suffered the biggest loss, with its shares falling 5.6%. TCS, HCL Tech, LTIMindtree, Coforge, and Wipro were also among the major losers, further exacerbating the overall market weakness. 

Asian market situation

Asian markets were mostly down on Friday, following overnight losses on Wall Street.

Japan's Nikkei 225 slipped 0.58 percent after briefly reaching the 58,000 level. The Topix also fell 0.58 percent. Meanwhile, South Korea's Kospi gained 0.35 percent. However, the small-cap Kosdaq slipped 1.36 percent. Hong Kong's Hang Seng Index futures were at 26,703, down from its previous close of 27,032.54.

US market declines

US indexes have been declining for the past three sessions, driven by a sustained selloff in tech stocks. However, US stock futures were roughly flat on Thursday.

S&P 500 futures gained 0.02 percent, and Nasdaq 100 futures gained 0.04 percent. Futures for the Dow Jones Industrial Average remained unchanged.

Why did IT stocks fall?

The continued sell-off in US technology stocks is largely due to the heavy investment in AI. Investors are increasingly concerned about whether the massive investments being made by big tech companies in AI will yield reasonable returns.

 

Major tech companies like Amazon, Google, Meta, and Microsoft are planning to invest approximately $650 billion to develop AI-enabled infrastructure.

They are all racing to outdo each other in this changing environment. The increasing scale of spending has put pressure on margins, uncertainty about monetization persists, and there are fears of potential disruption to the global software and services ecosystem.