Sensex, Nifty Slide Over 1% as IT Rout Deepens on AI Fears and Trade Uncertainty

Sensex, Nifty Slide Over 1% as IT Rout Deepens on AI Fears and Trade Uncertainty​

Mumbai, February 24: Benchmark equity indices Sensex and Nifty tumbled more than 1 percent on Tuesday, weighed down by a sharp selloff in information technology stocks amid rising concerns over artificial intelligence disruption and renewed global trade uncertainties.

Weak global cues, escalating US Iran tensions, and firm crude oil prices further dented investor sentiment, triggering broad based declines across sectors.

Benchmark Indices End Sharply Lower​

The 30 share BSE Sensex plunged 1,068.74 points, or 1.28 percent, to settle at 82,225.92. During the session, it dropped as much as 1,359.93 points, or 1.63 percent, to hit an intraday low of 81,934.73.

Market breadth remained negative on the BSE, with 2,802 stocks declining, 1,422 advancing, and 143 remaining unchanged.

The 50 share NSE Nifty declined 288.35 points, or 1.12 percent, to close at 25,424.65. It touched an intraday low of 25,327.60 after falling 385.4 points, or 1.49 percent.

On the NSE, 32 stocks ended lower while 18 advanced.

IT Stocks Drag Markets Lower​

IT counters bore the brunt of selling pressure as global technology weakness and fears of AI driven disruption weighed heavily on sentiment.

Tech Mahindra emerged as the biggest laggard, sliding 6.6 percent. Other major decliners included HCL Technologies, Eternal, Infosys, Tata Consultancy Services, Larsen & Toubro, Trent, Bharti Airtel, HDFC Bank, Bharat Electronics Limited, and ICICI Bank.

Among sectoral indices, Focused IT dropped 4.80 percent, while Information Technology fell 4.53 percent, making it the worst performing segment of the day.

Realty stocks also faced pressure amid expectations that sustained weakness in the IT sector could affect demand and valuations in real estate.

Defensive and Select Counters Offer Support​

On the gaining side, NTPC, Hindustan Unilever, Tata Steel, PowerGrid Corporation of India, Titan, Reliance Industries, Axis Bank, and Sun Pharmaceuticals were among the notable gainers.

Other sectoral indices such as Metal, Oil and Gas, Power, Energy, Utilities, Commodities, FMCG, Healthcare, PSU Bank, and Capital Goods managed to close in positive territory.

Broader markets also ended lower, with the BSE Smallcap Select Index falling 0.68 percent and the Midcap Select Index declining 0.54 percent.

Global Factors Add to Volatility​

Global trade concerns resurfaced after fresh warnings on tariffs and national security measures, adding to uncertainty. Escalating tensions between the United States and Iran, including reports of embassy staff evacuations and warnings of possible regional escalation, intensified risk aversion.

In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite Index, and Japan’s Nikkei 225 ended higher, while Hong Kong’s Hang Seng closed lower.

European indices were trading weak in mid session deals, with Germany’s DAX, London’s FTSE 100, and Paris’ CAC 40 down up to 0.27 percent.

The US equity market had ended nearly 2 percent lower on Monday.

Brent Crude, the global oil benchmark, rose 0.22 percent to 71.66 dollars per barrel, keeping inflation and fiscal concerns in focus.

Institutional Activity and Outlook​

Foreign Institutional Investors bought equities worth Rs 3,483.70 crore on Monday, while domestic institutional investors were net sellers to the tune of Rs 1,292.24 crore, according to exchange data.

In the previous session, the Sensex had climbed 479.95 points to close at 83,294.66, and the Nifty had advanced 141.75 points to settle at 25,713.

Market participants expect volatility to persist within a broader range as investors navigate mixed global signals, geopolitical risks, and sector specific pressures, particularly in the technology space.