The SENSEX Index Closes 1.29% Lower

India's BSE Sensex closed roughly 1.3% lower at 82,626.8 on Friday, the lowest since early February, marking the third straight session of declines. The selloff in IT stocks deepened, amid rising fears of AI-related disruption and fading expectations of US rate cuts in the near-term. As companies across the globe invest in AI automation, there are fears that outsourcing demand could weaken, affecting earnings for Indian IT stocks. Tata Consultancy Services, BEL, Infosys and HCL Technologies saw losses up to 2%. All other sectors also traded in the red, including metals, consumer durables, auto stocks, and financials. On the domestic data front, the latest data showed January inflation exceeded forecasts, marking the first reading within the RBI’s 2%–4% tolerance band since last August, dampening expectations of an interest rate cut at the upcoming meeting. For the week, the index posted a 1.1% decline.

The SENSEX Index fell -1082 points or 1.29 percent on Friday to close at 82593 points. Leading the losses are Hindustan Unilever (-4.51%), Eternal Limited (-2.87%) and Tata Steel (-2.47%).

The BSE Sensex fell 787 points, or 1.0%, to 82,878, declining for the third straight session and hitting its lowest level since February 2, tracking a downbeat session on Wall Street overnight amid ongoing pressure in the tech sector. Traders were also cautious after the latest data showed January inflation came in above forecasts and marked the first reading within the RBI’s tolerance band of 2%–4% since last August, erasing hopes of interest rate cuts at the upcoming meeting. Tech stocks plunged 5%, as investor sentiment was rattled by fears of AI disruption, with the biggest laggards including Infosys (-6.1%), Tata Consultancy Services (-4.8%), and HCL Technologies (-4.4%). Other sectors also traded in the red, including metals, consumer durables, auto stocks, and banking, mainly weighed down by Hindustan Unilever (-2.2%), Tata Motors (-1.6%), and Tata Steel (-1.6%). For the week, the index is heading for a 0.8% decline, which would be its first weekly loss in three weeks.