India’s benchmark indices logged their sharpest fall in four sessions on Tuesday, weighed down by a steep sell-off in IT shares amid renewed US tariff uncertainty, rising crude oil prices and weak global cues.
The Nifty declined 1.12 per cent, or 288.35 points, to close at 25,424.65, while the Sensex dropped 1.28 per cent, or 1,068.74 points, to settle at 82,225.92.
IT stocks bore the brunt of the selling pressure. The Nifty IT index plunged 4.74 per cent to 30,053.50 after touching a two-year low during the session. Realty shares also came under pressure, with the Nifty Realty index falling over 2 per cent. In contrast, the Nifty Metal index outperformed the broader market.
Broader markets showed relative resilience. The Nifty MidCap index ended 0.32 per cent lower, while the Nifty SmallCap index declined 0.55 per cent.
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic markets witnessed a sharp correction led by significant weakness in IT stocks amid mounting global concerns over AI-driven disruption and margin pressures on traditional service providers.
“Global trade and tariff worries resurfaced, with additional pressure 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,” he said.
Nair added that escalating US-Iran tensions, marked by embassy staff evacuations and warnings of broader regional escalation, further heightened risk aversion. “Markets remain highly sensitive to geopolitical risks and sector-specific pressures, prompting investors to rotate towards defensive, domestically focused segments,” he noted.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said midcap and smallcap indices opened weak and extended losses in early trade but saw buying interest at lower levels.
“Thin-bodied candles with noticeable lower wicks on the daily charts indicate demand emerging on dips,” Shah added.
(With inputs from agencies)
