Markets Slide: Sensex Crashes Over 700 Points, Nifty IT Index Drops 5%

Indian equity benchmarks extended their slide on Friday, mirroring weakness across global markets as a sharp sell-off in technology stocks dented investor confidence.

The BSE Sensex opened at 83,011, down 664 points or 0.79 per cent, while the Nifty 50 fell 227 points, or 0.88 per cent, to 25,580 in early trade.

Broader Markets Under Pressure

The weakness was not limited to frontline indices. The Nifty MidCap index slipped 1 per cent and the Nifty SmallCap index dropped 1.3 per cent, reflecting broad-based selling across sectors.

The brunt of the decline was borne by IT stocks. The Nifty IT index tumbled 5 per cent, led by a 5.6 per cent fall in Infosys. Other major losers included Tata Consultancy Services, HCL Technologies, LTIMindtree, Coforge and Wipro. The Nifty Metal index also declined 2 per cent, adding to overall market weakness.

What’s Driving the Sell-Off?

VK Vijayakumar, Chief Investment Strategist at Geojit Investment, said markets have entered a turbulent phase that may cause short-term panic but could also present selective buying opportunities.

He noted that the recent sell-off in US AI-related stocks was anticipated, though the timing and scale were uncertain. The Nasdaq Composite fell 2.03 per cent overnight, while the S&P 500 dropped 1.57 per cent and the Dow Jones Industrial Average declined 1.34 per cent.

According to Vijayakumar, while the unwinding of the global AI trade may not be entirely negative for India — given that Indian markets did not fully participate in last year’s AI-led rally — the immediate concern is the sharp correction in IT stocks, which represent one of the largest profit pools for India Inc.

He cautioned against panic selling in IT counters and suggested investors wait for clarity on the full impact of global AI-related disruptions on Indian technology firms.

Sectoral Outlook

Vijayakumar added that market volatility could be used to accumulate quality growth stocks, especially companies that delivered strong Q3 earnings. He expects auto stocks to remain relatively resilient due to healthy results and favourable growth prospects, indicating that any dip in the sector may offer buying opportunities.

Global Cues

Asian markets traded lower following Wall Street’s decline. Japan’s Nikkei 225 fell 1.69 per cent, South Korea’s KOSPI slipped 0.5 per cent, and Australia’s S&P/ASX 200 dropped 1.3 per cent in early trade.

The negative global sentiment, combined with heavy selling in domestic IT stocks, continues to weigh on Indian equities as investors assess the broader implications of the tech-led correction