Indian equity markets closed sharply lower, shaking investor confidence. The BSE Sensex plunged 1,068.74 points to end at 82,225.92. Meanwhile, the Nifty 50 dropped 288.35 points to settle at 25,424.65. As a result, investors lost nearly ₹3 lakh crore in market value in a single session.
Market analysts attributed the fall to a mix of global and sector-specific concerns. Moreover, heavy selling in IT stocks accelerated the decline during the latter half of the session.
AI Disruption Triggers IT Sell-Off
The sharp fall began after AI startup Anthropic introduced a new coding tool called Cloud Code. The tool modernises legacy COBOL systems quickly and at lower cost. Since maintaining old systems generates significant revenue for IBM, its shares fell more than 13%, marking their steepest drop in 26 years.
Consequently, Indian IT stocks faced heavy selling pressure. Investors dumped shares of Infosys, Tata Consultancy Services, and HCL Technologies. Therefore, the IT sector dragged the broader market lower.
Tariff Concerns Add Pressure
At the same time, global trade worries resurfaced. Former U.S. President Donald Trump made fresh remarks about imposing heavy tariffs. Although the U.S. Supreme Court had issued a ruling on related matters, his comments revived uncertainty in global markets. As a result, investors turned cautious and reduced exposure to equities.
Geopolitical Tensions Weigh on Sentiment
In addition, fears of escalating tensions between the United States and Iran unsettled markets. Investors often avoid risk during geopolitical uncertainty. Therefore, many shifted funds to safer assets, leading to further selling in equities.
Sector-Wise Performance
While IT and auto stocks witnessed steep losses, a few companies resisted the broader trend. Shares of NTPC, Hindustan Unilever, and Tata Steel managed to post gains. However, their rise could not offset the overall market weakness.
Meanwhile, the Indian Rupee traded at 90.95 against the U.S. Dollar. Negative global cues and currency pressure further deepened the market’s downward trend.
Investor Outlook
Overall, a combination of AI disruption fears, tariff uncertainty, and geopolitical risks triggered the sharp correction. Although selective stocks showed resilience, broader sentiment remained weak. Market experts suggest that investors may continue to monitor global developments closely before taking fresh positions.
The sharp fall highlights how global events and technological shifts can quickly influence Indian markets.
