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Sensex Crashes 1000+ Points as IT Stocks Plunge on AI, Geopolitical Fears

The Indian stock market witnessed a sharp sell-off on Tuesday, with the Sensex crashing over 1,000 points. The plunge was primarily driven by a massive 4% drop in IT stocks amid fears of AI disruption and global margin pressures. Geopolitical tensions, rising crude oil prices, and renewed global trade concerns further dampened investor sentiment. While realty stocks also declined, sectors like PSU Bank and Pharma managed to stay in the green.

Key Points: Sensex Falls 1000+ Points: IT Stocks Drag Market Down

  • Sensex plunged 1069 points
  • Nifty fell 1.12%
  • IT index crashed over 4%
  • Geopolitical tensions and trade worries fueled sell-off
  • PSU Bank and Pharma sectors gained
2 min read

Stock market ends in red; Sensex settles over 1000 pts low

Indian stock market ends deep in red as Sensex drops over 1000 points. IT stocks plunge 4% on AI disruption fears, global trade worries, and rising crude oil prices.

"Domestic markets registered a sharp decline, led by significant weakness in IT stocks amid renewed global concerns over AI-driven disruption - Vinod Nair"

Mumbai, February 24

The Indian stock market on Tuesday ended in red with benchmark indices Sensex and Nifty declining up to 1.28 per cent.

The indices were dragged lower by a sharp sell-off in IT shares as well as rising crude oil prices and weak global cues.

At the time of closing, Sensex settled 1068.74 points or 1.28 per cent lower at 82,225.92, while the broader Nifty was at 25,424.65, down 288.35 points or 1.12 per cent.

The Nifty 50 index opened at 25,641.80, down by 71.20 points or 0.28 per cent, while the BSE Sensex opened at 83,052.54, declining by 242.12 points or 0.29 per cent.

Apart from the IT index that plunged over 4 per cent, Nifty realty also declined by over 2 percent.

On the gaining side were PSU Bank, pharma, metal, and oil & gas.

On the market performance, Vinod Nair, Head of Research, Geojit Investments Limited said, "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. Realty stocks also came under strain on expectations that prolonged stress in the IT sector could weigh on real estate demand and valuations."

"Meanwhile, escalating U.S.-Iran tensions, marked by embassy staff evacuations and Iran's warnings of wider regional escalation, intensified risk aversion. Overall, markets remain highly sensitive to geopolitical risks and sector-specific pressures, driving investors toward defensive, domestically focused segments," he added.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said, "the Midcap and Small cap indices opened weak and extended their decline in early trade. However, strong buying interest at lower levels led to the formation of thin-bodied candles with noticeable lower wicks on the daily charts, indicating demand emerging on dips."

He added, "The market breadth was weak as the advance-decline ratio was heavily skewed in the favour of bears at day's close. A total of 305 stocks out of the Nifty 500 universe ended in the red."

- ANI

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Reader Comments

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Priya S
As someone with a lot invested in IT stocks, this is a painful day. The AI disruption talk is real, but our IT companies have weathered storms before. This might be a good opportunity to average down for long-term investors. Fingers crossed! 🤞
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Aman W
The market goes up, the market goes down. It's all part of the game. What matters is the long-term story of India's growth. These dips are normal corrections. Don't check your portfolio every hour if it stresses you out!
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Sarah B
Interesting to see the connection made between IT sector stress and realty demand. It makes sense – so many tech professionals drive housing markets in cities like Bangalore and Pune. A sustained IT slowdown could have wider ripple effects on the economy.
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Vikram M
The headline number looks scary, but look at the details. Mid and small caps showed buying at lower levels. The market breadth was bad, yes, but not a complete crash. It's a selective correction. Time to be stock-specific, not market-specific.
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Karthik V
Respectfully, while the analysis is good, I feel the media focuses too much on daily movements. For the common investor, this noise is distracting. We need more education on SIPs and long-term investing rather than minute-by-minute Sensex updates. Just my two paise.
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