Markets pare early losses as Sensex, Nifty steady amid IT sell-off

Indian equity benchmarks recovered from a weak start on Friday, with the Sensex and the Nifty trimming early losses despite sustained pressure on information technology stocks. Buying interest in select banking, metal and consumer shares helped stabilise the broader market after a sharp opening decline.

The Sensex, which had slipped sharply in early trade, clawed back ground through the session as heavyweight stocks outside the IT space attracted value buying. The Nifty followed a similar path, moving off its intraday lows even as technology majors continued to face selling pressure.

IT stocks remained under stress amid persistent concerns over slowing global demand, cautious client spending, and muted outlooks from overseas markets. The sector’s drag limited the extent of the rebound, keeping benchmark indices range-bound for most of the day.

Market participants said sentiment improved marginally as investors chose to focus on domestic resilience and selective earnings visibility rather than global uncertainty. Banking and financial stocks lent support, aided by expectations of steady credit growth and stable asset quality.

Broader markets showed mixed trends, reflecting caution among investors ahead of key global cues and upcoming macroeconomic data. Analysts said volatility is likely to persist in the near term, with stock-specific action dominating trade until clearer signals emerge from global markets and corporate earnings.

Despite the recovery from early losses, traders remained guarded, indicating that any sustained upside would depend on easing pressure in IT stocks and improved clarity on global economic conditions.