Sensex tumbles 389 points; Nifty settles below 18,500; banks buck trend

Out of tune with the positive global trend, domestic equities ended lower on Friday due to profit booking, as investors preferred to lighten positions ahead of the weekend.

Slipping below the support level of 18,500 points, the Nifty 50 settled 0.6% down at 18,496. The BSE Sensex closed 0.6% lower at 62,181 points.

Dragged by the underperforming IT stocks, benchmark indices registered weekly losses for the 1st time in 2 weeks, shedding over 1% each.

Meanwhile, equities in other Asian markets ended mostly higher as the dollar retreated and investors drew comfort from China’s move to ease Covid-19 restrictions across the country.

The fall in domestic equities was led by the information technology pack after a profit warning by sector major HCL Technologies soured the mood.

Shares of HCL Technologies slumped 7% to Rs 1,027.50. They were the worst hit on Nifty 50 after the company said revenue growth in the current financial year will be at the lower end of its guided range of 13.5-14.5%.

The warning comes just two months after the software major had raised the full-year growth guidance, citing a strong deal pipeline.

This had an impact on the entire pack, with Tata Consultancy Services, Wipro, Infosys, and Tech Mahindra shedding more than 1-3%.