Market Reaction: Nifty Declines Following Global Tech Sell-Off, IT Stocks Drag Indices Lower

Indian Equity Markets Open Lower Amid Global Weakness​

Mumbai, February 24: Indian equity benchmarks open sharply lower on Tuesday morning, reversing gains from the previous session as a global technology sell-off weighs on investor sentiment.

By 9:26 am, the Sensex drops 577 points or 0.69 per cent to 82,717, while the Nifty 50 slips 161 points or 0.63 per cent to 25,552. The decline comes in line with overnight weakness in US equities, where technology stocks face pressure amid disruptions linked to artificial intelligence developments.

Broader Markets Mirror Benchmark Weakness​

The weakness is not limited to frontline indices. Broader markets also trade in the red:

• Nifty Midcap 100 declines 0.55 per cent
• Nifty Smallcap 100 falls 0.67 per cent

The selling trend remains broad-based across segments, indicating cautious positioning at the start of the session.

Sectoral Performance: IT Leads the Fall​

Most sectoral indices trade in negative territory, with selective strength visible in metals and energy.

• Nifty IT plunges 2.84 per cent, emerging as the biggest loser
• Nifty Realty declines 0.90 per cent
• Nifty Media slips 0.32 per cent
• Nifty Metal rises 0.44 per cent
• Oil & Gas gains 0.32 per cent

The sharp fall in IT stocks reflects the global risk-off sentiment in technology counters following the US market decline.

Tariff Uncertainty Adds to Caution​

Investor sentiment remains measured amid renewed uncertainty surrounding tariffs. US President Donald Trump announces a new global tariff framework of 15 per cent, raising concerns across export-oriented sectors.

However, the US Customs and Border Protection agency states that it will halt the collection of reciprocal tariffs starting Tuesday US time, after the Supreme Court rules such tariffs illegal.

Recent adjustments under the US-India trade arrangement provide some clarity, but fresh announcements introduce near-term uncertainty, particularly for sectors dependent on global trade flows.

Technical Levels: Support and Resistance for Nifty​

Market watchers indicate immediate support for the Nifty in the 25,600 to 25,500 range. On the upside, resistance is seen around the 25,800 level. These levels are likely to guide intraday positioning.

Global Market Snapshot​

Asian markets trade mixed:

• Shanghai index rises 1.17 per cent
• Shenzhen advances 1.82 per cent
• Nikkei gains 0.92 per cent
• Hang Seng declines 2.02 per cent
• Kospi adds 1.58 per cent

US markets close significantly lower overnight:

• Nasdaq falls 1.13 per cent
• S&P 500 declines 1.04 per cent
• Dow Jones drops 1.66 per cent

Institutional Flows​

On February 23, foreign institutional investors net buy equities worth Rs 3,483 crore. In contrast, domestic institutional investors remain net sellers to the tune of Rs 1,292 crore.

With global cues turning volatile and tariff-related developments unfolding, markets begin the session on a cautious note, with technology stocks leading the decline.