Sensex Dips 1000 Points, Nifty Slips Below 24,700; IT Top Sectoral Loser

Domestic benchmark indices, Sensex and Nifty 50, traded in red on May 13, a day after logging its highest single-day gain in over four years following a temporary ceasefire between India and Pakistan.

In early trade, the Sensex tumbled as much as 1,093.86 points or 1.32 per cent to hit an intraday low of 81,336.04. The Nifty 50 plunged 289.8 points, or 1.16 per cent, to touch the day's low at 24,634.90. The broader market, however, outperformed the benchmark indices in early trade, with the Nifty Midcap 100 trading higher by 0.4 per cent and Nifty Smallcap 100 up by 0.7 per cent. The Nifty Microcap 250 index, on the other hand, saw the sharpest surge, rising over 1.6 per cent.

Devarsh Vakil, Head of Prime Research at HDFC Securities, in a pre-opening note, said, "Following yesterday's stupendous rise, Indian benchmark indices will likely consolidate recent gains, while we anticipate continued buyer interest in mid-cap and smallcap stocks at lower levels."

IT Lags After Yesterday's Sharp Rally

The Nifty IT index fell as much as 1.75 per cent so far during the day to emerge as the biggest sectoral loser on D-Street. In the previous session, it had logged a massive 6.7 per cent gain and was the top sectoral gainer.

The previous session's rally came after the United States (US) and China agreed to lower tariffs on each other, signalling a de-escalation in global trade wars. This has eased concerns of a global economic slowdown and thereby eased concerns about reduced tech spending by the US government. Since a majority of Indian IT services derive revenue from the US, stocks of such companies showed strong upward moves in the previous session.

Pharma, PSU Bank Emerge Top Sectoral Gainers

On the other hand, Nifty Pharma gained as much as 2.3 per cent during the day so far to emerge as the top sectoral gainer, followed by the Nifty PSU Bank, which gained up to 2 per cent.

The Nifty Bank index, which tracks the top 10 public and private bank stocks, traded lower. It plunged as low as 0.8 per cent to briefly slip below the 55,000 mark. 

Overall, other major sectoral indices traded mixed, with auto, FMCG, realty, and oil & gas trading in red, while healthcare and consumer durables traded in green.