Indian equity markets witnessed a sharp risk-off move on Tuesday, with benchmark indices closing decisively lower amid heavy selling in technology stocks and renewed global trade concerns. Investor sentiment weakened as fears around AI-led disruption, tariff uncertainty, and US-Iran tensions converged in a single session.
Index performance
Sensex declined 1,068.74 points (1.28%), to close at 82,225.92.
Nifty 50 fell 276.35 points (1.07%), settling at 25,436.65.
Nifty Bank slipped 216.95 points (0.35%), ending at 61,047.30.
Market capitalisation impact
Overall market capitalisation of BSE-listed companies dropped by nearly ₹3 lakh crore, falling to around ₹466 lakh crore from the previous session’s level of ₹469 lakh crore.
What drove the sell-off?
IT stocks under intense pressure
Technology stocks bore the brunt of the decline, with the Nifty IT index plunging over 4.5% and extending losses for a fifth straight session. Concerns intensified following developments around advanced AI coding tools, which have raised fears of cost compression in traditional software modernisation work. Heavyweights such as Infosys, TCS, HCL Technologies, Tech Mahindra, and Wipro saw sustained selling.
Global cues add to volatility
Investor caution increased after renewed uncertainty around US trade policy. Comments from US President Donald Trump on the possibility of higher tariffs under alternative trade frameworks unsettled global markets, particularly after the Supreme Court invalidated earlier emergency tariff measures. These developments added to existing concerns around geopolitical tensions and global growth.
Sharp global tech correction
Weakness in global technology stocks further weighed on sentiment. IBM shares recorded their steepest single-day fall since March 2020, triggering a broader sell-off across global software names. Stocks such as Microsoft and CrowdStrike also came under pressure, reinforcing negative sentiment toward the tech sector.
Sectoral trends
IT emerged as the weakest sector, down 4.54% on the day.
Defensive pockets showed relative stability, with Nifty Pharma edging up 0.50%.
Nifty PSU Bank gained 0.29%, reflecting selective interest in state-owned lenders.
Nifty Bank ended the session down 0.35%.
Stock-specific developments
BPCL disclosed a tax demand of ₹1,816.65 crore related to past transactions between September 2004 and May 2010. The company indicated it is reviewing the order and plans to file an appeal.
Bharti Airtel announced plans to infuse ₹20,000 crore into its NBFC arm, Airtel Money Limited, over the next few years. The proposed capital infusion signals a strategic push to scale digital lending and expand its presence in financial services.
Commodities & currency
Gold futures for April ended lower at ₹1,60,763, down ₹835 (0.52%).
Silver prices for March traded at ₹2,65,847, up ₹514 (0.19%).
The Indian rupee weakened to 90.96 against the US dollar, pressured by rising crude prices and a stronger dollar, though foreign inflows and robust forex reserves helped limit the downside.
Broader trends to watch
The Nifty IT index has now corrected nearly 21% in February, breaking below a key ten-month support level.
Despite the broader market weakness, PSU banks have continued to outperform on a weekly basis, supported by strong credit growth and stable asset quality.
Bitcoin also saw sharp volatility, falling nearly 5% to around $63,276, reflecting broader risk aversion across global asset classes.
Market takeaway
Tuesday’s session underscores the market’s sensitivity to global policy signals and structural disruption themes, particularly in technology. While sharp corrections have emerged in IT stocks, defensive sectors and select domestic themes continue to show resilience. Near-term market direction is likely to remain volatile, with global trade developments, AI-led business model shifts, and macro data acting as key triggers.
Source: Livemint, CNBC 18, Binance, Perplexity Finance
Disclaimer
This content is shared for general informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any securities or financial products. Market data and views are based on publicly available information and are subject to change. Investments in the securities market involve risk. Readers should consult a qualified financial advisor before making any investment decisions.
