India's 50 largest and most liquid stocks shed over Rs 1.75 lakh crore in market capitalisation on Tuesday as the benchmark Nifty 50 wiped out all the gains it incurred in the last two trading session.
The index closed 0.99% or 253.65 points lower at 25,459.35, snapping its two day gaining streak. The market cap stands at Rs 203.17 lakh crore.
Intraday, the Nifty fell as much as 1.5% to 25,327, falling below its crucial support level of 25,450 ahead of F&O expiry. Thirteen out of 15 sectoral gauges compiled by the NSE traded lower, led by the NSE Nifty IT Index's 5% fall. On the flipside, the NSE Nifty Pharma Index was the top sectoral gainer, up 0.2%.
The pain witnessed in the broader market recovered slightly, with Nifty Smallcap 250 ending with cuts of almost 0.43%. Nifty Midcap 150 was also down around 0.19%.
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IT Stocks Weigh on Indices Over AI Fears
A steep selloff in IT stocks dragged down overall market sentiment on Tuesday, with the Nifty IT index plunging nearly 4% in intraday trade. The sector has now slid close to 20% so far in February, pressured by mounting concerns over AI‑driven business disruptions and the impact of persistently high U.S. interest rates.
Global brokerages Citi, HSBC, and CLSA have sharpened their caution on India's IT services sector, warning that artificial intelligence could structurally reshape business models and pressure valuations - even as stocks have rebounded roughly 16% year-to-date.
Surge in Oil Prices Over Iran Tensions
Oil prices edged higher as traders assessed the chances of progress on an Iranian nuclear agreement, after U.S. President Donald Trump signaled he would prefer a diplomatic resolution but cautioned that Iran would face consequences if talks failed.
Brent crude climbed back above $72 a barrel after a marginal decline in the previous session, while West Texas Intermediate hovered near $67. In a social‑media post, Trump warned it would be a “very bad day” for Iran if a deal wasn't reached, while also dismissing reports suggesting the Pentagon was concerned about the feasibility of sustaining a prolonged military operation. The comments injected fresh geopolitical tension into energy markets, helping support prices.
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