Market Pulse: Nifty Plunges 1.14% on IT Sector Rout, FII Selling Dominates Ahead of Weekend - Apr 24, 2026

Indian equity markets ended a volatile week on a decidedly negative note today, with benchmark indices witnessing a sharp correction. The Nifty 50 plummeted by 1.14%, closing just shy of the 23,900 mark at 23,897.95, while the broader Sensex shed a significant 1.29%. This deep cut was primarily driven by an aggressive sell-off in the technology sector, alongside considerable profit booking across various segments.

Adding to the market's unease, the India VIX, often termed the 'fear index', surged by 6.04% to settle at 19.71. This notable jump signals increasing investor apprehension and expectations of higher market volatility in the sessions ahead. The BankNifty, while also in the red, showed comparatively more resilience, declining by 0.38% to 56,089.75, cushioned by selective buying in financial stocks.

Globally, the picture was mixed, with the US Dow Jones Industrial Average dipping slightly by 0.31%, but the S&P 500 managed a 0.63% gain, primarily boosted by strong performance in the technology sector, notably Intel's impressive surge. However, this positive sentiment in global tech did not translate to Indian IT counters today, which faced intense pressure.

The trading day commenced with a cautious tone, as global cues presented a mixed bag. However, the initial jitters soon transformed into a broad-based selling spree as the session progressed. The Nifty 50 opened marginally lower and quickly succumbed to selling pressure, especially from heavyweight Information Technology (IT) stocks.

Mid-session saw the market attempting to pare some losses, but these recovery efforts were short-lived. A relentless barrage of selling in the IT sector, triggered by a combination of factors including profit booking and broader sector concerns, dragged the index significantly lower. Key IT giants like Infosys and TCS bore the brunt of this selling, contributing heavily to the Nifty's decline.

As the session drew to a close, bearish sentiment intensified, pushing the Nifty 50 to its lowest point of the day. The index breached crucial psychological levels, indicating a lack of conviction among buyers. The simultaneous surge in India VIX throughout the day underscored the rising uncertainty and nervousness, as traders opted to offload positions and reduce risk ahead of the weekend.

While the BankNifty displayed relative strength compared to the Nifty 50, even it could not escape the overall negative undertone, closing in the red. The session was largely characterized by a 'risk-off' mood, with investors re-evaluating their portfolios amidst domestic earnings reports and persistent foreign institutional selling.

Today's market action clearly highlighted a significant rotation, with the technology sector taking a massive hit, while some defensive and commodity-linked stocks showed resilience. The IT sector was the undisputed laggard, with all major players experiencing sharp declines, pulling the broader market down.

The IT sector was severely impacted, with Infosys leading the decline, shedding 6.92%, followed closely by TCS (down 4.79%), Tech Mahindra (down 4.20%), and HCLTech (down 4.08%). This widespread correction in IT stocks can be attributed to a combination of factors, including potential profit booking after a recent rally and cautious sentiment ahead of upcoming earnings season for the sector. Pharmaceutical major Sun Pharma also saw significant selling, dropping 3.67%.

Conversely, sectors like Metals & Mining and select Financial Services showed some strength. Coal India emerged as a top gainer, rising 0.97%, while Hindalco Industries gained 0.78%. This indicates a potential shift towards commodity plays amidst broader market volatility. Retail giant Trent gained 0.91%, and FMCG major Nestle India saw a modest rise of 0.67%, suggesting some defensive buying as investors sought safe havens.

Financial Services, despite the overall weak market, had a mixed day. Shriram Finance managed a gain of 0.66%, likely reacting positively to its Q4 results which showed a 41% jump in profit. This selective buying in financials, contrasted with the heavy selling in IT, highlights a clear preference for value and domestic growth stories over the export-oriented tech sector in today's session.

Today's market correction was significantly influenced by the activities of institutional investors. Foreign Institutional Investors (FIIs) were strong sellers in the Indian equity cash market, offloading shares worth a substantial ₹8,827.87 crore. This aggressive selling by FIIs acted as a major overhang on the market, contributing heavily to the Nifty's sharp decline and broad-based weakness.

In contrast, Domestic Institutional Investors (DIIs) stepped in to provide crucial support, absorbing some of the selling pressure. DIIs were net buyers in the cash market, with purchases totaling ₹4,700.71 crore. This persistent buying by domestic funds helped to cushion the fall, preventing an even steeper decline in the benchmark indices. The divergence between FII and DII activity highlights a continuing trend where domestic money provides a floor for the market against foreign outflows.

Beyond the cash market, FIIs also showed a bearish bias in the derivatives segment, particularly in Index Futures, where they net sold contracts worth ₹2,103.78 crore. This further reinforces the cautious to negative outlook held by foreign participants as we head into the weekend, suggesting they are hedging against potential downside risks or reducing their long positions.

Global markets presented a mixed picture, influencing but not entirely dictating India's domestic slide. In the US, the Dow Jones Industrial Average saw a modest dip of 0.31%, but the broader S&P 500 managed a gain of 0.63%, with the tech-heavy Nasdaq Composite surging by 1.38%. This rebound in US tech was largely propelled by Intel's impressive 25% jump after better-than-expected results driven by AI-chip demand. However, this positive sentiment for tech stocks globally did not translate into support for Indian IT counters today.

Commodity markets saw some movement, with Crude Oil (WTI) falling by 2.23%, potentially easing some inflation concerns. Conversely, Gold and Silver prices rose by 0.83% and 1.15% respectively, signaling a flight to safety amidst global uncertainties. The Indian Rupee also depreciated against the US Dollar, with USD/INR rising by 0.46% to 94.23, making imports costlier and potentially impacting foreign investor sentiment.

Domestically, a flurry of Q4 earnings reports captured attention. Reliance Industries (RIL), a market heavyweight, announced a 9% fall in net profit, accompanied by the sharpest margin squeeze in 14 quarters for its energy segment. While its Jio and Retail businesses showed steady growth, the overall muted profit figure from such a large conglomerate likely dampened broader market sentiment. Other companies like Shriram Finance and Hindustan Zinc reported strong Q4 results, which helped their individual stock performances.

In other macro news, India's Net FDI hit a 45-month high of $4.6 billion in February, indicating positive foreign investment interest despite the recent FII outflows in equities. This positive long-term investment signal stands in contrast to the short-term market dynamics.

Today's market movements brought several stocks into sharp focus, reflecting both the prevailing bearish sentiment and specific company-level developments.

IT Majors (Infosys, TCS, HCLTech, Tech Mahindra)

The entire IT sector witnessed a brutal sell-off, with Infosys leading the pack, crashing by 6.92%. TCS declined by 4.79%, while HCLTech and Tech Mahindra shed 4.08% and 4.20% respectively. This widespread correction can be attributed to a combination of profit booking after a recent run-up, weak global cues for the sector despite strong US tech performance, and perhaps some pre-earnings anxiety. The significant FII selling also disproportionately impacts these export-oriented companies, as foreign funds often have high exposure to them.

Reliance Industries (RIL)

Although not a top gainer or loser today, RIL was a major talking point after reporting a 9% fall in Q4 net profit, largely due to a sharp margin squeeze in its oil & gas segment. While its Jio and Retail ventures continued to shine with steady growth, the overall numbers from India's largest company likely weighed on broader market sentiment, especially on a day when the Nifty corrected sharply. The news of a ₹6 dividend was also announced, but could not uplift the sentiment immediately.

Shriram Finance (SHRIRAMFIN)

Bucking the bearish trend, Shriram Finance was among the few Nifty constituents to close in the green, gaining 0.66%. This positive movement came on the back of strong Q4 results, with the company reporting a robust 41% jump in profit. The announcement of a final dividend further boosted investor confidence, signaling fundamental strength amidst a challenging market backdrop for many other sectors.

Paytm Payments Bank (Indirect Impact)

While not a Nifty stock, the Reserve Bank of India's decision to revoke the banking license of Paytm Payments Bank and seek its winding up is a significant development for the broader financial and digital payments ecosystem. This move, stemming from regulatory non-compliance, could lead to increased scrutiny on other fintech players and could create ripple effects, making investors cautious about regulatory risks in fast-growing sectors.

As we head into the next trading session, the Indian market finds itself at a crucial juncture following today's sharp correction. The significant FII selling, coupled with the surge in India VIX, indicates heightened caution among investors. The performance of the IT sector will be closely watched, as will the broader market's reaction to ongoing Q4 earnings season and any fresh global cues.

Key technical levels for the Nifty 50 will be critical for determining future direction. Traders should monitor sustained institutional flows and the movement of the India VIX for clues on market sentiment. Global developments, especially from the US markets and any major geopolitical news, could also play a significant role in shaping market opening and direction.