Sensex declines 303 points, as IT stocks continue decline

‘Focus in coming weeks to be on RBI moves to rein in inflation’

Nifty IT plunged the most at 3.4%, followed by Nifty Media and Nifty Reality which were down 2.9% each, says an analyst. | Photo Credit: PAUL NORONHA

Benchmark stock indices fell for the third consecutive day on Wednesday, as technology counters continued to decline. Globally too, tech shares witnessed selling pressure.

The S&P BSE Sensex fell 303.35 points, or 0.56%, to 53,749.26. Four among the six stocks that slid the most were IT stocks. Asian Paints declined 8.04%, while TCS (3.69%), Tech Mahindra (3.53%), Wipro (3.30%0 L&T (3.09%) and Infosys (2.06%) too dropped.

The NSE Nifty50 index slumped 0.62%, to 16,025.80 points.

“Most sectoral indices ended in the red,” said Arafat Saiyed, senior research analyst at Reliance Securities. “Nifty IT plunged the most at 3.4%, followed by Nifty Media and Nifty Reality which were down 2.9% each,” he added.

"As investors await the last leg of earnings results which will end by this week, the primary focus in the coming weeks will be on the central banks’ policy measures to stabilise inflation," he said.

"Changes in oil prices and amendments to import and export duties might play a role in assessing the market’s trajectory. However, continuous FII sale and the plunging rupee, are likely to have economic implications in the near-term," he added.