The Indian benchmark indices were subdued in late-morning trade Friday, with the Nifty 50 holding near 24,800 and the Sensex edging lower. The weakness extended the market’s losing streak, with a sixth consecutive down day in sight, as selling pressure in IT and pharma stocks weighed on sentiment.
Why the Market is Weak
Technology shares slipped after global IT major Accenture cut its outlook, sparking fears of slower demand for outsourcing and consulting services. The read-across hit heavyweight Indian IT names, dragging the Nifty IT sub-index lower.
Pharma counters also came under pressure after reports of possible U.S. drug tariff changes, raising worries about export-driven earnings for large generic manufacturers. Together, these two sectors pulled the benchmarks into the red despite some resilience in banks and select domestic cyclicals.
Investor Sentiment
Market breadth was weak, with nearly two declining shares for every gainer on the NSE. Traders said foreign flows remained cautious, with FIIs trimming positions in tech-heavy portfolios. Domestic institutions provided some support, but not enough to offset sector-specific drags.
Volatility was modest, with the India VIX holding steady, though sentiment remained fragile after five consecutive losing sessions.
What’s Next
- IT guidance: Street will track whether Indian IT majors provide any commentary linked to Accenture’s outlook.
- Pharma policy watch: Updates on U.S. drug tariffs could further pressure sentiment.
- Global cues: U.S. bond yields and dollar moves remain key for foreign flow direction.
If the Nifty closes lower today, it will mark its sixth straight decline, the longest such stretch in 2025 so far. Technical analysts peg immediate support near 24,650–24,700, with resistance around 25,050.
Outlook
With global signals soft and domestic heavyweights under pressure, traders see near-term sentiment tilted negative. This looks like a consolidation phase with a downside bias, a dealer at a Mumbai brokerage said. We need fresh triggers from earnings or macro data to break the losing streak.
For investors, the focus will be on whether banks and industrials can provide a counterbalance to weakness in IT and pharma. Until then, markets may remain range-bound with a downward tilt.
