Sensex, Nifty decline in early trade on selling in IT shares, sluggish Asian peers
Sensex, Nifty Open Lower Amid Weak Global Cues, IT Stocks Lead Decline
Mumbai, May 30, 2025 — Benchmark Indian equity indices, the Sensex and Nifty, opened lower on Thursday, dragged down primarily by losses in IT stocks and weak cues from Asian markets. Investors turned cautious amid concerns over global economic growth and persistent selling pressure in key technology counters.
The BSE Sensex slipped over 300 points in early trade, falling below the 75,000-mark, while the NSE Nifty 50 declined by more than 100 points, hovering around 22,700. The broader market sentiment remained subdued, with most sectoral indices in the red.
IT Stocks Take a Hit
Information technology shares were the top losers, reflecting weak overnight cues from US tech stocks and continued concerns over global demand for IT services. Companies like Infosys, TCS, Wipro, and HCL Tech saw declines ranging from 1% to 2.5%.
Analysts attributed the pressure on Indian IT stocks to multiple factors including concerns over slower client spending in the US and Europe, margin pressures due to rising wage costs, and cautious management outlooks during recent quarterly earnings.
“The IT pack is underperforming amid fears of global tech slowdown and cautious hiring by top firms in the West,” said Rahul Shah, a senior analyst at Motilal Oswal Financial Services.
Global Cues Weigh on Sentiment
Asian markets were broadly lower following a weak finish on Wall Street overnight. Investors remained jittery ahead of key economic data from the US and China, as well as upcoming inflation numbers that could influence the US Federal Reserve’s next policy move.
Indices such as Nikkei, Hang Seng, and Kospi were all trading in the red, further denting sentiment on Dalal Street.
“Sluggishness across Asian peers and caution ahead of global economic data releases have added to the pressure on domestic equities,” said Geetanjali Shah, an equity strategist at Kotak Securities.
Other Sectoral Movements
Beyond IT, other sectors such as realty, media, and FMCG also saw minor declines. However, banking and auto stocks managed to limit broader losses, with select names like ICICI Bank, Bajaj Auto, and Maruti Suzuki holding steady.
The Nifty Bank index was relatively resilient, buoyed by stable earnings prospects and a strong credit growth outlook in the domestic market.
Market Outlook
Market participants are closely watching global macroeconomic developments and upcoming domestic GDP data due this week. Volatility may continue ahead of the RBI’s next monetary policy meeting, scheduled in early June.
Technical analysts believe that 22,600–22,650 is an immediate support zone for the Nifty, while 75,200 remains a crucial level for the Sensex.
Key Data Points:
- Sensex: Down ~300 points at ~74,900
- Nifty 50: Down ~100 points at ~22,700
- Top Losers: Infosys, TCS, Wipro, Tech Mahindra
- Top Gainers: ICICI Bank, Maruti, Bajaj Auto
- Asian Markets: Nikkei -0.8%, Hang Seng -1.1%, Kospi -0.6%
