Indian stock markets face a sharp decline as Sensex and Nifty slump due to IT stock selloffs amid rising AI disruption fears and renewed global trade concerns.
Illustration: Dominic Xavier/Rediff
Key Points
- Indian stock market indices Sensex and Nifty fell sharply due to a selloff in IT stocks, fueled by fears of AI-led disruption.
- Rising crude oil prices and renewed global trade concerns, particularly related to US President Trump’s tariff policies, contributed to the negative market sentiment.
- IT stocks like Eternal, HCL Technologies, and Infosys experienced the most significant declines on the Sensex.
- Investors are closely watching US President Trump’s upcoming State of the Union address for further insights on trade policies.
- Foreign Institutional Investors (FIIs) were net buyers, while Domestic Institutional Investors (DIIs) were net sellers in the market.
Equity benchmark indices Sensex and Nifty slumped nearly 1 per cent in early trade on Tuesday, dragged down by a sharp selloff in IT stocks amid rising fears of AI-led disruption.
Besides, rising crude oil prices and renewed concerns over global trade after US President Donald Trump’s latest tariff remarks also weighed on investors’ sentiment, traders said.
The 30-share BSE Sensex tanked 813.13 points, or 0.97 per cent, to 82,481.53 in early deals.
The 50-share NSE Nifty declined 230.15 points, or 0.89 per cent to 25,482.85.
Gainers and Losers
Eternal dropped the most from the Sensex pack, declining 3.82 per cent, followed by HCL Technologies, Infosys, Tech Mahindra, Tata Consultancy Services, Bharti Airtel, Bajaj Finance, Bharat Electronics Ltd, Trent, Adani Ports, ITC, and Titan.
On the other hand, State Bank of India, Axis Bank, PowerGrid, Asian Paints, Kotak Mahindra Bank, and Tata Steel were among the gainers.
Market Analyst Insights
“The trend of weakness in tech stocks stemming from the potential AI impact continues. The weakness in the ADRs of Indian IT companies indicates that this segment will continue to remain under pressure,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.
He further stated that US President Donald Trump’s State of the Union address later in the day and the message that he would convey will be keenly watched by markets globally.
“The EU freezing the deal with US in the light of the tariff changes following the Supreme Court verdict and Trump’s warnings to countries backing away from deals indicate that the tariff drama has more in store for economies and markets. We will have to wait and watch how this drama plays out,” Vijayakumar said.
Global Market Trends
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite Index and Japan’s Nikkei 225 benchmark were trading higher, while Hong Kong’s Hang Seng quoting in the red.
The US equities market ended nearly 2 per cent lower in overnight deals on Monday.
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.
Brent Crude, the global oil benchmark, rose 1 per cent to $72.13 per barrel.
