Markets opened sharply lower on Tuesday, February 24, with the shedding 781.09 points or 0.94 per cent to trade at 82,513.57 by 9.52 am, after opening at 83,052.54 against its previous close of 83,294.66. The 50 dropped 214.70 points or 0.83 per cent to 25,498.30 by 9.53 am, having opened at 25,571.25, the same as its previous close of 25,571.25, as global headwinds dominated sentiment on a monthly derivatives expiry day.
The selloff was driven by a sharp overnight decline on Wall Street, where the Dow Jones plunged 822 points or 1.7 per cent, the S&P 500 fell 1 per cent, slipping back into negative territory for 2026, and technology stocks bore the brunt of selling pressure. “Wall Street stocks tumbled on fears of AI-driven disruption… persistent concerns over AI’s disruptive potential and President Trump’s erratic trade policy has been a primary source of market volatility throughout the first year of his second term,” said Devarsh Vakil, Head of Prime Research, HDFC Securities.
crashed 13 per cent, its steepest single-day loss since October 2000, after Anthropic unveiled an AI tool capable of modernising Cobol, the legacy language underpinning IBM’s core business. Accenture and fell sharply in sympathy. The drag spilled over to Indian IT counters, with leading the Nifty losers, falling 4.36 per cent to ₹1,364.00. Infosys dropped 3.54 per cent to ₹1,280.50 and TCS declined 3.47 per cent to ₹2,583.40. “The weakness in the ADRs of Indian IT companies indicates that this segment will continue to remain under pressure,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Telecom major fell 3.76 per cent to ₹1,922.30, while food delivery platform Eternal slid 3.47 per cent to ₹258.70, adding to the broad-based losses.
On the gainers’ side, edged up 0.31 per cent to ₹2,437.20, while Dr. Reddy’s Laboratories rose 0.30 per cent to ₹1,311.30. Hindalco gained 0.29 per cent to ₹918.90, added 0.28 per cent to ₹427.20, and Axis Bank advanced 0.27 per cent to ₹1,390.40. The marginal gains in metals, pharma, and banking stocks offered limited cushion against the broader decline.
Renewed tariff uncertainty added to investor anxiety. President Donald Trump’s rollout of a 10–15 per cent global tariff framework, effective Tuesday, rattled export-oriented sectors. “The EU freezing the deal with the US in the light of the tariff changes and Trump’s warnings to countries backing away from deals indicate that the tariff drama has more in store for economies and markets,” Vijayakumar said. Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, noted that “investor sentiment turned risk-averse amid persistent concerns over AI-driven disruption across industries and renewed tariff tensions after President Donald Trump warned of imposing much higher tariffs on countries that play games.”
On the institutional front, Foreign Institutional Investors turned net buyers on February 23, purchasing equities worth ₹3,843 crore, also turning net buyers for the month. Domestic Institutional Investors, however, offloaded equities worth ₹1,292 crore. “FIIs have been buyers in ten out of the last seventeen trading sessions indicating their renewed interest in India… the improving corporate earnings in India is the principal reason for this change in FII stance,” Vijayakumar said, adding that capital goods and financials could remain resilient while IT stays weak.
From a technical standpoint, the Nifty is holding between the 0.382 and 0.50 Fibonacci retracement levels of its recent decline. “The 26,000 strike holds the highest Call open interest at 1.85 crore contracts, capping the upside, while the 25,500 strike has significant Put open interest of 1.31 crore contracts, offering strong support,” said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, adding that India VIX at 14.17 indicates moderate volatility and the index is likely to remain range-bound between 25,500 and 26,000 in the near term.
On the banking front, Bank Nifty closed the previous session at 61,264.25, up 0.15 per cent. “As long as 60,600 is defended, the broader bias stays positive, with banking stocks likely to maintain relative outperformance amid expiry-driven volatility,” said Ponmudi R, CEO of Enrich Money. Vakil noted a recovery was anticipated “supported by continued short covering on the monthly derivative expiry day and emerging buying interest from FPIs in the cash markets.”
Crude oil edged up to $66.52 a barrel, supported by the resumption of US-Iran nuclear talks, while Asian equity markets opened tentatively, rattled by Wall Street’s overnight losses. “President Trump’s State of the Union address today and the message that he would convey will be keenly watched by markets globally,” Vijayakumar added.