Summary of this article
Sensex, Nifty fall as investors book profits after five-session peace-deal rally
IT stocks emerge top sectoral losers; Nifty IT tumbles on Accenture's weaker growth outlook
Oil eases on US-Iran ceasefire progress; Asian markets trade mixed
Stock Market Today: Benchmark indices took a breather after a five-session relief rally fuelled by the signing of US-Iran peace deal optimism. IT stocks and benchmark heavyweights were the main drags to the indices.
Broader market, on the other hand, relatively saw lesser meltdown. The Nifty Midcap 100 was down 0.40 per cent, and the Nifty Smallcap 100 was marginally in red, while Nifty 500 lost over 0.50 per cent, in early trade.
Nifty IT Emerge As Top Sectoral Loser
Among sectors, IT stocks saw the steepest drawdown, with the Nifty IT index falling as much as 6.50 per cent after global technology services giant Accenture lowered the upper end of its full-year revenue growth forecast and issued a weaker-than-expected outlook, raising fresh concerns about demand trends across the information technology sector.
Apart from IT, realty, banks, financial services, metals, oil & gas, FMCG, and consumer durables were among the losers. On the other hand, pharma, healthcare, and media were in green.
Nifty 50 Top Gainers And Losers
Among Nifty 50 constituents, Infosys plunged over 8 per cent, Tata Consultancy Services tumbled 6 per cent, HCL Technologies and Tech Mahindra fell up to 5 per cent, while Wipro declined around 3.50 per cent. Tata Steel, Hindustan Unilever, Eternal, Bharat Electronics, and Asian Paints were among other top losers, each falling over 1 per cent. On the other hand, providing support to the index were NTPC, Apollo Hospitals, Adani Enterprises, Trent, Bharti Airtel, Titan, and Reliance Industries.
Asian Equities Mixed, US Stocks Close Higher
Asian markets traded mixed on June 19, with the broader regional benchmark touching a record high as investor sentiment improved following the reopening of the Strait of Hormuz and signs of easing inflationary pressures. The MSCI Asia Pacific ex-Japan Index rose 0.47 per cent.
South Korea's Kospi jumped more than 3 per cent at the open but later reversed course to trade 1.50 per cent lower. Japan's Nikkei 225 was largely unchanged, while Hong Kong's Hang Seng declined 1.60 per cent. China's CSI 300 gained 0.20 per cent, and Taiwan's Taiex advanced 1.30 per cent.
Crude Oil Price Eases
Crude oil prices extended their decline after the US lifted restrictions on vessels entering and leaving Iranian ports and coastal waters, as part of the recently signed ceasefire agreement between Washington and Tehran.
At 10:10 AM, Brent crude was down 0.31 per cent at $79.60 a barrel, while US West Texas Intermediate crude slipped 0.18 per cent to $75.71 per barrel.
The easing in oil prices came as markets assessed the ceasefire deal, which lays the groundwork for a fresh round of negotiations between the two countries over the next 60 days.
As part of the agreement, Iran has pledged to ensure the safe passage of oil tankers through the Strait of Hormuz, a key global shipping route that handles around one-fifth of the world's oil trade before the conflict erupted. The deal also allows commercial vessels to pass through the strait without charge for 60 days. Any future arrangements governing transit and maritime services will be worked out by Iran in consultation with Oman and other Gulf states.
