Dalal Street tanked in early trade on Tuesday after recent gains, as IT stocks plummeted, tracking the selloff on Wall Street overnight. Sensex and Nifty tanked over half a percent, dragged by IT sector stocks.
The S&P BSE Sensex was down by 572.60 points to 82,722.06, while the NSE Nifty50 tanked 156.60 points to 25,556.40 as of 9:27 am.
The Nifty IT Index came under strong selling pressure, falling 3.18%, after a weak session on Wall Street overnight amid continued concerns about AI-driven disruption.
Most frontline IT stocks traded lower. Coforge Ltd declined 4.05%, while Persistent Systems Ltd fell 3.73%. HCL Technologies Ltd was down 3.63% and Mphasis Ltd slipped 3.54%.
Infosys Ltd dropped 3.39%, while Tech Mahindra Ltd fell 3.05%. Tata Consultancy Services Ltd declined 2.91%, Wipro Ltd was down 2.64%, LTIMindtree Ltd slipped 2.60%, and Oracle Financial Services Software Ltd fell 1.63%. The broad-based decline shows continued pressure on the IT pack following global cues.
At the opening bell, IT stocks came under heavy selling pressure in early trade. Among the gainers, Tata Steel Ltd led with a rise of 0.31%. It was followed by State Bank of India Ltd, which gained 0.28%. Asian Paints Ltd moved up 0.23%, while Axis Bank Ltd added 0.14%. Power Grid Corporation of India Ltd also opened slightly higher, rising 0.13%.
On the losing side, Eternal Ltd saw the sharpest fall, dropping 3.84%. HCL Technologies Ltd declined 3.54%, Infosys Ltd fell 3.46%, Tech Mahindra Ltd slipped 3.04%, and Tata Consultancy Services Ltd was down 2.98%, reflecting the sharp sell-off in IT stocks at the start of trade.
Markets came under pressure as risk sentiment weakened following fresh uncertainty around US trade policy. Investors turned cautious after comments from US President Donald Trump on tariffs created concerns about the global trade outlook.
Wall Street slid overnight after President Trump warned countries not to walk away from newly negotiated trade deals. His remarks came after the US Supreme Court struck down the emergency tariffs. However, Trump said he could impose much higher duties under other trade laws if required.
The possibility of fresh tariffs and renewed trade tensions unsettled global investors. As a result, markets reacted negatively, with risk appetite taking a hit across equities.