The Indian stock market on Friday closed in the red as the benchmark indices Sensex and Nifty declined over 1 per cent. The indices were dragged by heavy selling in information technology (IT) shares.

Sensex crashed 1.25%, or 1048 points to end at 82,626.76, while the Nifty 50 dropped by 1.30% falling 336 points at 25,471.10. Nifty IT fell for the third straight session, declining about 5 per cent, amid the fears of Artificial Intelligence driven automation. At the time of market closing, Nifty IT was down 1.44 per cent.

At opening, the Nifty 50 index was down at 25,571.15, declining by 236.05 points or (-0.91 per cent). The BSE Sensex also opened lower at 82,902.73, falling by 772.19 points or -0.92 per cent.

Vinod Nair, Head of Research, Geojit Investments Limited said, “Domestic equities ended lower following a highly volatile session, weighed down by weak global cues ahead of the upcoming US inflation data. Sentiment gains from the US-India trade deal have faded as renewed AI-driven disruption fears weigh on risk appetite, with markets worrying that Indian IT firms dependent on labour arbitrage model may face tougher competitive pressure than their Nasdaq peers.

This cautious tone extended across the broader market, pulling all major indices into negative territory, with most sectors closing in the red.””Metal stocks saw profit-booking amid a stronger dollar index, as reports of Russia’s return to the US-dollar settlement system heightened expectations of potential sanctions relief and raised concerns over weaker realisations for metal companies. Realty stocks declined on the back of weak results and delayed launches,” he said.

Vatsal Bhuva, Technical Analyst at LKP Securities said, “Bank Nifty slipped below a short-term consolidation range, indicating minor profit booking after the recent up move. However, the index continues to trade above its 20-day moving average placed near 59,700, which remains a crucial short-term support. The immediate support is seen in the 59,800-59,700 zone, while a stronger base is placed near 58,800-58,700. The broader bullish structure remains intact as long as the index sustains above 59,700. RSI around 54 is flattening, suggesting momentum is cooling. Resistance is placed near 60,800-61,000.”

Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities said, “Rupee traded slightly weak by Rs 0.06 at Rs 90.61 against the dollar, while the dollar index remained flat near 97.00, keeping overall momentum range-bound. Immediate support is placed near Rs 90.90, whereas resistance is seen around Rs 90.25. With US CPI data due this evening, volatility is expected to rise. Depending on the inflation outcome, rupee could witness a gap opening on Monday, and any decisive break on either side may set the next directional trend.”