Market Wrap: Sensex and Nifty Close Lower Amid IT Sector Decline

Indian equity markets ended the day on a subdued note, with the BSE Sensex falling by 271 points to close at 82,209.09, and the NSE Nifty slipping below the 25,000 mark to settle at 24,945.45. The downturn was primarily driven by a sharp sell-off in information technology (IT) stocks, following Moody’s downgrade of the U.S. government’s credit rating from AAA to AA1.

The IT sector, heavily reliant on U.S. markets for revenue, reacted negatively to the downgrade, with the Nifty IT index declining nearly 1%. This offset gains in other sectors, despite 11 out of 13 major sectors advancing during the session.

Among individual stocks, Divi’s Laboratories surged over 5% on strong fourth-quarter earnings, while CreditAccess Grameen fell about 5% due to lower net interest income.

Global market sentiment remained cautious, with most Asian markets trading lower and U.S. equity futures slipping, reflecting concerns over the U.S. credit rating downgrade and its potential impact on global financial markets.