Markets Slip as IT Stocks Drag Ahead of Q1 Earnings Season
Indian benchmark indices Sensex and Nifty traded in the red on Thursday, as investor caution ahead of the Q1 earnings season and persistent weakness in IT stocks dragged overall sentiment. At around 12:10 p.m., the Sensex was down 376.71 points, or 0.45 percent, at 83,159.37, while the Nifty fell 114.25 points, or 0.45 percent, to 25,361.85.
Market participants appeared to adopt a cautious approach ahead of the June quarter earnings, particularly as Tata Consultancy Services (TCS), the country’s largest software exporter, is scheduled to report its Q1 FY26 results later today. The IT sector has been under pressure due to a range of global and sector-specific challenges, which continued to weigh heavily on investor sentiment.
Weakness in the IT pack was among the key contributors to the market decline, amid concerns over tepid global demand, rising trade tensions, and the evolving impact of artificial intelligence on traditional outsourcing models. Many investors remain wary about the near-term growth prospects of large-cap IT firms, leading to a selloff in the sector ahead of earnings disclosures.
Bharti Airtel, Tech Mahindra, Sun Pharmaceutical Industries, Coal India, and Cipla were among the major laggards on the Nifty index, falling up to 2 percent in intraday trade. Broader market indices also mirrored the weak sentiment, with midcap and smallcap indices trading lower.
Global cues also remained mixed, offering little support to domestic equities. While U.S. markets ended flat overnight, Asian markets showed a lack of clear direction, with investor focus shifting toward upcoming inflation data and central bank commentary globally.
Analysts believe that volatility may remain elevated over the coming weeks as the earnings season progresses and companies provide guidance for the rest of the financial year. The market is expected to closely track IT earnings in particular, given their significant weightage in the indices and the broader implications for the Indian services export sector.
Overall, Thursday’s decline reflected a cautious tone across markets, with traders keeping a close eye on corporate results and global developments.
