Mumbai, February 24: Indian benchmark equity indices ended sharply lower on Tuesday, with the Sensex and Nifty falling over 1 per cent each, weighed down by heavy selling in information technology stocks amid concerns over artificial intelligence-led disruption and renewed global trade uncertainties.
Investor sentiment was further dampened by rising global crude oil prices, escalating US-Iran tensions, and subdued global cues.
Sensex Falls Over 1,000 Points, Nifty Drops Below 25,500
The 30-share BSE Sensex plunged 1,068.74 points, or 1.28 per cent, to close at 82,225.92. During the session, the benchmark tumbled as much as 1,359.93 points, or 1.63 per cent, to hit an intraday low of 81,934.73.The 50-share NSE Nifty declined 288.35 points, or 1.12 per cent, to settle at 25,424.65. In intraday trade, it dropped 385.4 points, or 1.49 per cent, to a low of 25,327.60.
The sharp correction comes a day after markets had posted gains. On Monday, the Sensex had risen 479.95 points to 83,294.66, while the Nifty had advanced 141.75 points to close at 25,713.
IT Stocks Under Pressure on AI Disruption Fears
Market participants attributed the selloff primarily to weakness in the IT sector. Concerns resurfaced over disruption caused by artificial intelligence and potential margin pressures for traditional service providers.Tech Mahindra emerged as the biggest laggard, sliding 6.6 per cent. Other major losers included HCL Technologies, Eternal, Infosys, Tata Consultancy Services, Larsen and Toubro, Trent, Bharti Airtel, HDFC Bank, Bharat Electronics Ltd, and ICICI Bank.
In contrast, NTPC, Hindustan Unilever, Tata Steel, PowerGrid, Titan, Reliance Industries, Axis Bank, and Sun Pharmaceuticals were among the gainers, offering limited support to the broader market.
Broader Markets and Realty Stocks Also Decline
The broader market indices mirrored the benchmark weakness. The BSE Smallcap Select Index fell 0.68 per cent, while the Midcap Select Index slipped 0.54 per cent.Realty stocks also came under pressure amid expectations that prolonged stress in the IT sector could affect real estate demand and valuations.
Global Trade, Geopolitical Tensions Add to Volatility
Global trade concerns resurfaced following warnings from US President Donald Trump on trade deals and reports of possible national-security tariffs. At the same time, escalating US-Iran tensions, including embassy staff evacuations and Iran’s warnings of wider regional escalation, heightened risk aversion.Asian markets delivered mixed performance. South Korea’s Kospi, Shanghai’s SSE Composite Index, and Japan’s Nikkei 225 ended higher, while Hong Kong’s Hang Seng closed in the red.
European markets were trading lower in mid-session deals, with Germany’s DAX, London’s FTSE 100, and Paris’ CAC 40 down up to 0.27 per cent.
The US equity market had ended nearly 2 per cent lower on Monday.
Crude Oil Prices and Institutional Flows in Focus
Brent Crude, the global oil benchmark, rose 0.22 per cent to USD 71.66 per barrel, adding to inflationary concerns and pressure on emerging markets.On the institutional front, 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, as per exchange data.
With global uncertainties intensifying and sector-specific headwinds mounting, Indian equity markets remain sensitive to geopolitical risks and shifts in global trade dynamics.
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