IT rout drags Sensex, Nifty down over 1%; 357 stocks hit 52-week lows

Indian equities witnessed a sharp sell-off on February 24, with benchmark indices ending deep in the red amid broad-based weakness, led by significant declines in IT stocks amid renewed global concerns over AI-driven disruption and margin pressures for traditional service providers. Notably, this marked the fifth instance this month that the equity benchmarks - Sensex and Nifty - ended with losses exceeding 1%, underlining persistent volatility.

The BSE Sensex plunged 1,068.74 points, or 1.28%, to close at 82,225.92 after touching an intraday low of 81,934.73. The index opened lower at 83,052.54 and failed to stage any meaningful recovery through the session. The total market capitalisation of BSE-listed companies dropped by approximately ₹3.2 lakh crore today to ₹466 lakh crore.

In a similar trend, the Nifty50 declined 288.35 points, or 1.12%, on the monthly expiry day to settle at 25,424.65, after slipping to a low of 25,327.60.

Broader markets mirrored the weakness in frontline indices, though the damage was relatively contained outside technology. The Nifty Midcap100 and the Nifty Smallcap100 indices ended lower by 0.32% and 0.5%, respectively.

The market saw broad-based selling as sentiment was dented by U.S. President Donald Trump's threat of renewed tariffs, which spooked investors. Out of 4,367 stocks traded on the BSE, 2,796 declined, while 1,424 advanced and 147 remained unchanged. Notably, 357 stocks hit 52-week lows, while 91 shares touched their fresh 52-week highs, indicating a risk-off sentiment.

IT stocks drag markets lower

Technology counters bore the brunt of the sell-off, tracking weakness in global tech stocks and rising concerns over artificial intelligence-led disruption. Shares of Tech Mahindra tumbled 6.60%, while HCL Technologies fell 5.79%. Heavyweights Infosys and Tata Consultancy Services declined 3.91% and 3.79%, respectively, amplifying the weakness in the broader market.

“Investor sentiment weakened amid renewed concerns over global trade developments and rising geopolitical tensions, which kept crude oil prices elevated. Moreover, continued pressure on global technology stocks and fears of AI-led disruption further dragged domestic IT shares, amplifying the decline in the benchmark indices,” said Ajit Mishra, SVP, Research, Religare Broking.

Among other laggards, Larsen & Toubro dropped 3.38%, while Bharti Airtel slid 2.83%. Financial stocks were mixed, with HDFC Bank falling 1.42% and ICICI Bank shedding 1.02%, even as Axis Bank managed marginal gains.

On the gaining side, NTPC emerged as the top Sensex performer, rising 1.94%. Hindustan Unilever added 0.90%, while Tata Steel and Power Grid Corporation of India posted modest gains, indicating some rotation towards defensives and select cyclicals.

On the sectoral front, Nifty IT was the worst-performing sector, plunging 4.74% as heavy selling in frontline technology names dragged the pack lower.

Real estate stocks were another pocket of weakness, with Nifty Realty declining 2.54%, while Nifty Media and Nifty Chemicals dropped 1.31% and 1.07%, respectively.

In contrast, metals and defensives provided some cushion. Nifty Metal rose 0.93%, emerging as the top gainer among sectoral indices. Nifty Oil & Gas advanced 0.50%, while Nifty PSU Bank added 0.29%.

Consumption-linked segments showed resilience. Nifty FMCG gained 0.19%, and Nifty Pharma and Nifty Healthcare Index edged higher by 0.24% and 0.22%, respectively — indicating selective defensive buying.

What experts say

Vinod Nair of Geojit Investments said domestic markets were hit by renewed global concerns over AI-driven disruption and margin pressures in traditional IT services. He added that resurfacing global trade and tariff worries, alongside geopolitical tensions such as escalating U.S.–Iran developments, intensified risk aversion.

“Overall, markets remain highly sensitive to geopolitical risks and sector-specific pressures, driving investors toward defensive, domestically focused segments,” he said.

Echoing the same view, Ponmudi R of Enrich Money said, “Indian markets traded on a cautious note after a gap-down start, as investors refrained from building aggressive positions amid mixed global cues. Escalating global macro uncertainty — particularly around U.S. trade and tariff developments — along with persistent concerns over AI-led disruption in the global technology space, weighed on overall risk appetite and prompted defensive positioning across most sectors.”

Meanwhile, Sudeep Shah of SBI Securities highlighted that the Nifty broke below key support levels and its 20-, 50- and 100-day EMAs, indicating sustained technical weakness.

“Notably, this marks the fifth instance this month that Nifty has ended with losses exceeding 1%. On the daily chart, the index has formed a sizeable bearish candle and once again slipped below its 20-, 50- and 100-day EMAs, indicating sustained pressure.”

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)