Sensex Crashes Over 1,000 Points, Nifty Slips Below 25,450; IT Index Plunges 5%

Indian equity markets witnessed a sharp selloff on Tuesday, with benchmark indices tumbling amid heavy selling in IT and auto stocks. The steep correction erased over ₹5 lakh crore in investor wealth, dragging total BSE market capitalisation down to around ₹466 lakh crore.

The Sensex plunged more than 1,000 points, while the Nifty 50 slipped below the 25,450 mark, reflecting heightened risk aversion across Dalal Street.

🔥 What Triggered the ₹5 Lakh Crore Selloff?

Several factors combined to shake investor confidence:

1️⃣ IT Bloodbath Intensifies

The IT index crashed nearly 5%, extending losses as global tech weakness spilled over to Indian markets.

Adding to the pressure, shares of IBM sank 13% — their steepest fall in 25 years — after Anthropic stated that AI could modernise COBOL systems, sparking concerns about legacy tech services demand.

2️⃣ Trump’s Fresh Tariff Threat

Renewed tariff uncertainty from the U.S. added to global trade worries.

3️⃣ US Tech Selloff & Weak Asian Markets

Global sentiment turned fragile as U.S. tech stocks corrected, pulling down Asian indices.

4️⃣ Weekly Expiry Volatility

Derivative expiry amplified intraday swings.

5️⃣ Weak Rupee Against Dollar

Currency weakness further dented foreign investor sentiment.

6️⃣ Geopolitical Tensions

Speculation around potential U.S.–Iran conflict added another layer of uncertainty.

📊 Sectoral Action: Rotation, Not Panic

Despite the headline crash, market internals suggest selective rotation rather than broad panic selling.

🔴 Under Heavy Pressure:

• IT

• Media

• Auto

🟢 Showing Resilience:

• Metals

• PSU Banks

• Select Defensive Stocks

Financial stocks remained mixed, indicating stock-specific positioning rather than blanket selling.

🌍 Global Market Snapshot

• S&P 500 futures: +0.2%

• Nasdaq 100 futures: +0.3%

• MSCI Asia Pacific Index: +0.2%

• Hang Seng: –1.9%

• Euro Stoxx 50 futures: +0.2%

Global cues were mixed, offering limited support to domestic equities.

🎯 Market Outlook

The broader tone reflects rising caution, with investors shifting from expensive growth stocks toward value and cyclical sectors.

Key Levels to Watch:

• Nifty Support: 25,300

• Resistance: 25,700

Unless the IT sector stabilises, markets may continue to witness volatility in the near term.

For now, risk management remains key as global macro and geopolitical headlines dominate market direction.