Indian equity benchmarks witnessed a sharp decline on Tuesday, weighed down by losses in technology, real estate and other heavyweight stocks. The 30-share BSE Sensex pack plunged 1,068.74 points or 1.28 per cent to close at 82,225.92. The NSE Nifty50 index also settled lower, slipping 288.35 points or 1.12 per cent to 25,424.65.
The sell-off eroded over Rs 3.1 lakh crore in investor wealth during the afternoon session. BSE market capitalisation (m-cap) dropped by Rs 3.13 lakh crore to Rs 466.05 lakh crore from Rs 469.19 lakh crore in the previous session.
Tech and realty stocks drag
Selling in heavyweights like HDFC Bank Ltd, Larsen & Toubro (L&T), Bharti Airtel and ICICI Bank dragged the benchmark indices lower. IT majors including Infosys Ltd, Tata Consultancy Services (TCS), HCL Technologies Ltd and Tech Mahindra Ltd also weighed on the market. Other key losers were Bharti Airtel Ltd, Eternal Ltd and Trent Ltd. Separately, the entire realty index ended the session in the red.
Ravi Singh, Chief Research Officer at Mastertrust, said, “Both realty and IT stocks are facing pressure today. The decline appears to be driven more by broader market nervousness than by any specific trigger. In the IT space, investors remain uncertain about near-term growth amid concerns over global demand, rising bond yields and ongoing debates about AI disrupting traditional business models.”
He added, “Realty counters, on the other hand, are witnessing profit booking after rallying nearly 15 per cent over the past few weeks. Given that the sector is interest rate-sensitive, elevated bond yields and tight liquidity conditions have made traders cautious. At this stage, the selling seems sentiment-led rather than indicative of any structural weakness. The long-term outlook for both sectors remains positive, though near-term momentum has softened and volatility is increasing.”
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said global markets are closely watching US President Donald Trump’s State of the Union address and the signals he may send on trade policy.
“The EU freezing the deal with the US in light of tariff changes following the US Supreme Court verdict and Trump’s warnings to countries backing away from deals indicate that the tariff drama has more in store for economies and markets. We will have to wait and watch how this drama plays out,” he stated.
Vijayakumar added that weakness in technology stocks continues amid concerns over the potential impact of artificial intelligence (AI) on the sector. This segment may continue to remain under pressure, he noted.
FII trend offers some support
Despite the current volatility, Vijayakumar highlighted a positive shift in foreign institutional investor (FII) activity. FIIs have been net buyers in 10 of the last 17 trading sessions, signalling renewed interest in Indian equities.
“Improving corporate earnings in India is the principal reason for this change in FII stance. Given the robust macros of the Indian economy and improving corporate earnings, this FII buying trend can continue. Therefore, sectors in which FIIs have been buyers, like capital goods and financials, will remain resilient, while the IT segment, in which they have been sellers, will continue to be weak,” he said.
Kranthi Bathini, Equity Strategist at WealthMills Securities, advised investors to adopt a ‘buy-on-dips’ and ‘sell-on-rallies’ strategy.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
