Stock Market Update: Sensex falls 389 points, Nifty settles below 18500; Nifty Bank Dollar Trending

Stock Market Update: As investors decided to lighten positions before the weekend, domestic equities ended lower on Friday due to profit taking, which was out of step with the favourable worldwide trend.

The Nifty 50 ended the day 0.6% lower at 18496 after slipping below the support barrier of 18500 points. The BSE Sensex ended the day at 62181 points, down 0.6%.

Benchmark indices registered weekly losses

For the first time in two weeks, benchmark indices experienced weekly declines, losing more than 1% on average. The information technology pack, the second-most powerful sectoral group on the Nifty, took the lead in the decline in domestic shares after sector giant HCL Technologies issued a profit warning.

HCL Technologies' stock fell 7% to Rs 1027.50. After the company stated that sales growth in the current financial year will be at the lower end of its guided range of 13.5-14.5%, they took the biggest drop on the Nifty 50.

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The caution was issued barely two months after the large software company increased its growth forecast for the entire year, citing a healthy transaction pipeline.

Tata Consultancy Services, Wipro, Infosys, and Tech Mahindra all saw their stock prices drop by more than 1% as a result, having an effect on the entire pack.

Stock Market Update: Darlings of Dalal Street

According to Vinod Nair, head of research at Geojit Financial Services, "Today's decline in the domestic market was sparked by IT stocks extending their losses after warning of a potential slowdown in business on global recession fears, which was further aggravated by banks losing their grip as PSBs suffered heavy sell-offs."

After recent advances, Dalal Street's favourite public sector banks, including Bank of Maharashtra, Bank of India, Union Bank of India, and Indian Bank, succumbed to profit-booking as the Nifty PSU Bank index dropped 1.8%.

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