- Rising global tensions and AI-disruption fears led to a massive sell-off, with the total market capitalization of BSE-listed firms dropping to ₹466 lakh crore.
- The IT sector was the session’s worst performer, with heavyweights like Tech Mahindra and HCL Tech plunging over 6% as investors digest the fallout from last week’s AI Summit.
- The Nifty 50 failed to hold the crucial 25,460 level, ending at 25,459, signaling a bearish trend ahead of the next trading session.
Dalal Street witnessed a brutal “Black Tuesday” as the BSE Sensex plummeted 974.77 points to close at 82,319, while the NSE Nifty 50 slipped below the critical support of 25,460 to end at 25,459. The session was characterized by extreme risk aversion, resulting in a loss of approximately ₹3 lakh crore in investor wealth as global tensions and structural fears in the tech sector converged.
The AI Summit Hangover: IT Stocks Plunge 4-6%
The most striking feature of today’s collapse was the “bloodbath” in IT stocks. Much of this stems from the lingering sentiment following last week’s AI Summit, where global leaders warned of rapid displacement in traditional software services.
Investors are now acting on those warnings. Tech Mahindra led the losers with a staggering 6.60% drop, followed closely by HCL Tech (-6.10%) and Infosys (-3.91%). These blue-chip firms are bearing the brunt of fears that AI-driven disruption is no longer a future threat, but a present-day catalyst for valuation de-rating.
Market Summary: Winners and Losers
Despite the broader market gloom, a few “defensive” plays managed to stay green, led by energy and consumer staples.
Top 4 Gainers (BSE)
| Stock Name | Current Price | Change (%) |
| NTPC | ₹382.75 | +1.94% |
| HUL | ₹2,359.30 | +0.62% |
| Tata Steel | ₹209.15 | +0.53% |
| Power Grid | ₹304.85 | +0.49% |
Top 5 Losers (BSE)
| Stock Name | Current Price | Change (%) |
| Tech Mahindra | ₹1,346.55 | -6.60% |
| HCL Tech | ₹1,339.40 | -6.10% |
| Eternal | ₹253.95 | -5.28% |
| Infosys | ₹1,276.55 | -3.91% |
| TCS | ₹2,574.50 | -3.79% |
Volatility and the F&O Expiry Factor
Adding fuel to the fire was the monthly F&O expiry. As institutional investors unwound positions amid escalating global trade tensions, the selling pressure intensified in the final two hours of trade. The Nifty’s inability to hold 25,460 is a major psychological blow, often referred to in trading desks as a “structural break” that could lead to further testing of the 25,100 zone.
Outlook for Wednesday
With the total market cap of BSE firms falling from ₹469 lakh crore to ₹466 lakh crore, the immediate focus remains on global cues. If the US-Iran tensions do not de-escalate and tech sentiment remains sour, the 25,327 level will be the only thing standing between the Nifty and a deep corrective phase.
Nifty fell due to heavy selling in IT stocks amid AI disruption concerns and increased volatility during monthly F&O expiry
AI Disruption Fears: Following last week’s AI Summit, investors sold off IT heavyweights like Tech Mahindra and HCL Tech over concerns that generative AI will hurt traditional software margins.
₹3 Lakh Crore Wipeout: Rising global tensions, specifically involving the US and Iran, triggered mass risk aversion.
F&O Expiry: The monthly Futures and Options expiry led to intense institutional selling and position unwinding in the final hours of trade.
The IT sector was the primary driver of the meltdown, with many stocks falling between 4% and 6%.