Indian Equities Plunge: IT Drags, Gold Rises Amid Fragile Confidence & 'Buy-the-Dip' Warnings

• Indian equities experienced a sharp selloff, with Sensex falling over 1,000 points, signaling a visible loss of confidence due to global and domestic uncertainty.
• IT stocks were the biggest drag, underperforming significantly due to their close link to global growth expectations and disappointing guidance from export-facing companies.
• The rally in gold and silver, alongside a weakening rupee, indicates investors are seeking safety, highlighting increased risk aversion in the market.
• Analysts warn against a blind 'buy-the-dip' strategy, as small-cap and mid-cap valuations remain high despite significant corrections in individual stocks.
• Global brokerages like Morgan Stanley and Goldman Sachs remain optimistic on India's long-term outlook (2026), citing potential for Sensex/Nifty growth driven by macro revival and earnings recovery.

Why It Matters: Indian equities face a confidence crisis, with IT stocks and global uncertainty driving a selloff, while gold gains.