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The Indian stock market witnessed a sharp decline on Monday, following a strong rally in the previous week.

The NSE benchmark Nifty 50 opened flat but soon saw severe profit booking, resulting in the opening level becoming the high of the day. The primary reason for this fall is the disappointing start to the earnings season.

IT Sector: TCS and Infosys Miss Street Expectations

The IT sector has been hit particularly hard, with- IT giants TCS and Infosys missing the street's expectations. Both companies flagged a lot of uncertainty in their banking, financial and insurance segment over the near term in the North American market as clients rushed to conserve cash. As a result, the Nifty IT index witnessed its sharpest single-day fall in many months, touching its crucial support level of 26,180-26,190.

US Market: Tepid Cues From Wall Street

The cues from Wall Street were also tepid, with major US stock indexes falling on Friday. Surprisingly weak retail sales figures coincided with the release of a report from the University of Michigan showing a jump in year-ahead inflation expectations in April. This double whammy overshadowed strong earnings reports from JPMorgan Chase and Citigroup. At the time of writing, the Dow Jones Futures for June 23 were trading with modest gains of 0.19%.

Market Statistics: Advance-Decline Ratio Negative

On NSE, the advance-decline ratio was negative, with 1,080 stocks trading in the red and 857 advancing. However, the breadth is not too bad, thanks to the outperformance of the broader markets.

Foreign Institutional Investors (FIIs) were net buyers, purchasing shares worth Rs 221.85 crore. On the other hand, Domestic Institutional Investors (DIIs) were net sellers, selling shares worth Rs 273.68 crore as of April 17, according to data.

As of April 17, in derivatives FIIs added longs, and covered their short positions and with this, their long position stands at 39.27%.

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