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Equity benchmarks fell on Thursday, dragged by financial and tech stocks, as foreign selling continued amid persisting fears of a prolonged high rate regime.
The Nifty 50 index fell 0.74 per cent to 17,321.90, while the S&P BSE Sensex closed 0.84 per cent lower to 58,909.35.
The benchmarks have logged losses in nine of the last 10 sessions after snapping an eight-day losing streak on Wednesday.
Eleven of the 13 major sectoral indexes fell with the high weightage financials losing 0.85 per cent and information technology shedding 1.26 per cent, respectively.
Nine of the 10 constituents of the IT index logged losses, led by a 1.90 per cent decline in Tata Consultancy Services and 1.6 per cent fall at Infosys.
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The slide in the IT sector, which earns a significant share of its revenue from the US, comes after official data showed rise in raw material prices, heightening fears of elevated levels of inflation that could prolong the high rate regime.
IT companies could see some project cutbacks in the next few months as customers rationalise tech spending, per analysts at Antique Stock Broking.
Meanwhile, foreign portfolio investors (FPIs) sold a net ₹38,789 crore of Indian equities thus far into the year.
"A liquidity dry-up due to foreign selling, continuing weakness in earnings and lack of retail support will continue to pile pressure on markets for the next few months," said Avinash Gorakshakar, head of research at Profitmart Securities.
Maruti Suzuki India fell 2.46 per cent after the country's top car maker warned of a fall in output in March due to a shortage of electronic components.
On the other hand, Rail Vikas Nigam climbed over 12 per cent after emerging as the lowest bidder to make and maintain 200 Vande Bharat trainsets.
Macrotech Developers surged 20 per cent after the company estimated its pre-sales to grow at an average annual growth rate of 20 per cent and reach ₹20,000 crore by fiscal year 2026.
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