Mumbai, Feb 24: Equity benchmark indices Sensex and Nifty tumbled more than 1 per cent on Tuesday, dragged down by heavy losses in IT stocks amid concerns over artificial intelligence-led disruption and renewed trade-related uncertainties.
Rising global crude prices amid escalating US-Iran tensions and sluggish global cues also hit investor sentiment, traders said.
Snapping its two-session rally, the 30-share BSE Sensex plummeted 1,068.74 points, or 1.28 per cent, to settle at 82,225.92. During the day, the benchmark plunged 1,359.93 points, or 1.63 per cent, to hit an intraday low of 81,934.73.
A total of 2,802 stocks declined, while 1,422 advanced and 143 remained unchanged on the BSE.
The 50-share NSE Nifty fell 288.35 points, or 1.12 per cent, to close at 25,424.65. In the intraday session, it depreciated by 385.4 points, or 1.49 per cent, to hit a low of 25,327.60.
As many as 32 of its components ended in the red while 18 settled in the green territory.
Tech Mahindra emerged as the biggest laggard, declining by 6.6 per cent, followed by HCL Technologies, Eternal, Infosys, Tata Consultancy Services, Larsen & Toubro, Trent, Bharti Airtel, HDFC Bank, Bharat Electronics Ltd and ICICI Bank.
On the other hand, NTPC, Hindustan Unilever, Tata Steel, PowerGrid, Titan, Reliance Industries, Axis Bank, and Sun Pharmaceuticals were among the gainers.
Domestic markets registered a sharp decline, led by significant weakness in IT stocks amid renewed global concerns over AI-driven disruption and margin pressures for traditional service providers.
Global trade and tariff worries resurfaced as well, with additional pressure arising from Trump’s warnings on trade deals and reports of possible national-security tariffs.
Broader indices also ended in the negative territory, with the BSE Smallcap Select Index falling 0.68 per cent, while the Midcap Select Index slipped 0.54 per cent.
Among the sectoral indices, Focused IT dropped the most by 4.80 per cent, followed by Information Technology by 4.53 per cent, Realty by 2.61 per cent, Telecommunication by 1.79 per cent, Consumer Discretionary by 1.12 per cent, and Industrials by 0.91 per cent.
On the other hand, Metal, Oil & Gas Power, Energy, Utilities, Commodities, FMCG, Healthcare, PSU Bank, and Capital Goods, among others, were finished in the green territory.
Realty stocks also came under strain on expectations that prolonged stress in the IT sector could weigh on real estate demand and valuations, Nair said.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite Index and Japan’s Nikkei 225 benchmark ended higher, while Hong Kong’s Hang Seng closed in red territory.
European stock markets were trading lower in mid-session deals, with Germany’s DAX, London’s FTSE 100 and Paris’ CAC 40 trading down up to 0.27 per cent.
The US equity market ended nearly 2 per cent lower on Monday.
Brent Crude, the global oil benchmark, rose 0.22 per cent to USD 71.66 per barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 3,483.70 crore on Monday, while domestic institutional investors were net sellers of stocks worth Rs 1,292.24 crore, according to exchange data.
On Monday, the 30-share BSE Sensex climbed 479.95 points to settle at 83,294.66, while the NSE Nifty advanced 141.75 points to close at 25,713.
Markets are likely to remain volatile within a broader range, driven by mixed global and domestic cues.
Rupee declines 6 paise to settle at 90.95 against US dollar
The rupee traded in a narrow range on Tuesday and settled 6 paise lower at 90.95 against the US dollar amid a firm greenback and higher crude oil prices.
A sharp fall in domestic equity markets and uncertainties over the India-US trade deal further pressured the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 90.91 and traded in a narrow range of 90.91-90.97 due to possible intervention by the Reserve Bank of India (RBI). It ended the session at 90.95, down 6 paise from its previous close.
The rupee gained 5 paise to settle at 90.89 against the US dollar on Monday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.16 per cent higher at 97.86. (PTI)
