Stock market closed: Big fall in stock market due to selling in IT shares, Sensex fell 1,069 points

Mumbai. Domestic stock markets closed with a big fall on Tuesday due to heavy selling in information technology (IT) stocks amid challenges related to artificial intelligence (AI) and global trade uncertainties. Sensex fell by 1,069 points while Nifty fell by 288 points. Analysts said the rise in crude oil prices due to rising tensions between the US and Iran also affected investor sentiment. BSE’s benchmark index Sensex based on 30 shares closed at 82,225.92 points, falling 1,068.74 points or 1.28 percent.

At one point during trading, it fell 1,359.93 points to 81,934.73 points. NSE’s 50-share standard index Nifty also closed at 25,424.65 points with a loss of 288.35 points or 1.12 percent. During the day it slipped 385.4 points to 25,327.60. Vinod Nair, Head of Research, Geojit Investments Ltd, said, “The domestic market witnessed a sharp decline, led by IT stocks. Global concerns over widespread disruption due to AI and pressure on margins of traditional IT service providers have resurfaced.”

Nair said concerns regarding global trade and US tariffs have increased again. US President Donald Trump’s warnings on trade agreements and news of possible national security-related tariffs put additional pressure on the market. Among IT companies, Tech Mahindra’s shares recorded the biggest decline of 6.6 percent. Apart from this, shares of HCL Tech, Infosys, Tata Consultancy Services and Larsen & Toubro also declined. On the contrary, bullish trend was seen in NTPC, Reliance Industries, Tata Steel and Sun Pharma.

In the broader market, BSE Smallcap Select index of small companies fell 0.68 percent and Midcap Select index of medium companies fell 0.54 percent. Nair said fears of prolonged stress in the IT sector also weighed on real estate stocks as it could impact demand and valuations of homes. In other markets of Asia, South Korea’s Kospi, China’s Shanghai Composite and Japan’s Nikkei were in the rise, while Hong Kong’s Hang Seng closed in the decline.

In European markets, Germany’s DAX, London’s FTSE 100 and Paris’ CAC 40 were in decline in afternoon trade. American markets closed with a loss of about two percent on Monday. International oil benchmark Brent crude rose 0.22 percent to $71.66 per barrel. According to stock market data, foreign institutional investors (FIIs) made net purchases of Rs 3,483.70 crore on Monday while domestic institutional investors made net sales of Rs 1,292.24 crore. In the last session, Sensex rose 479.95 points to close at 83,294.66 points and Nifty rose 141.75 points to close at 25,713 points.