Nifty slides 1.16% as Kospi hits circuit breaker (2026)

Global risk-off returns to equities

Asian equity markets saw a sharp downturn as investors sold technology stocks amid concerns that recent gains had become excessive. The risk-off mood spread beyond Asia, with market commentary pointing to gloomy trading globally and renewed “AI bubble” fears. The selling pressure was not limited to equities, with Bitcoin reported down 51%. In equities, the most dramatic moves came from South Korea, where a steep intraday fall triggered market safeguards. The combination of tech-led volatility, concerns around interest rates, and geopolitical risks set the backdrop for a broad pullback.

South Korea’s Kospi triggers circuit breakers

South Korea’s Kospi experienced extreme volatility during the week. In one session, trading on the Kospi was temporarily suspended after the index plunged 8%, triggering a circuit breaker designed to limit panic selling. The halt lasted 20 minutes, and the index later finished the day down 5.8%. The Korea Exchange’s 20-minute halt was described as the third circuit-breaker trigger within the week and the fifth occurrence this year.

On another day, the Kospi fell as much as 10%, again forcing a 20-minute halt after market-wide circuit breakers were triggered. Separately, Bloomberg reported the Kospi Index closed 4.3% lower on Tuesday and extended its decline from a record high in late February to nearly 20%, a threshold typically considered bear market territory. The pullback was also described as bringing the Kospi close to the 5,000 level, a milestone promoted by President Lee Jae Myung and reached in late January.

Semiconductor stocks lead the technology selloff

The pressure in South Korea was concentrated in AI-linked technology stocks, particularly semiconductors. Semiconductor giants Samsung Electronics and SK Hynix were reported down nearly 13% and 12% in one wave of selling, reflecting concerns that the rally had become stretched. In another report focused on a later session, both stocks were said to have dropped over 5% as the tech selloff continued.

There was also evidence of quick reversals as volatility stayed elevated. After a steep drop on Tuesday, the Kospi was reported to have rebounded by 3% on Wednesday morning, while Samsung rose 7%, recovering a substantial part of its earlier decline. Separately, commentary referenced a one-day rebound of 10% on March 5 that pushed the Kospi back above its 30-day moving average.

Indian markets fall on weak global cues

Indian benchmark indices fell sharply amid the global risk-off tone, weakness in technology stocks, and profit booking after a recent rally. On Tuesday, the BSE Sensex ended 893.39 points, or 1.16%, lower at 76,200.68. The NSE Nifty 50 declined 278.80 points, or 1.16%, to close at 23,824.10.

The decline was attributed to a mix of factors cited in the market coverage: a sharp correction in South Korean equities, renewed fears of US rate hikes, weakness in IT stocks, and broad-based profit booking. The move came despite stable crude prices and easing geopolitical tensions being noted in the same context. The session was also framed as the biggest single-day decline for the benchmarks in nearly two weeks.

Investor anxiety points: rates, oil, currency, positioning

Beyond equities, several cross-market signals were highlighted as adding to risk appetite concerns. Market commentary flagged renewed fears around the US interest-rate outlook, and one segment cited strong US jobs data as a key reason for risk rising again. Brent crude was described as approaching $100 amid Iran escalation, adding another macro variable for equity markets.

Currency and positioning indicators were also referenced. USD/JPY was cited at around 160, described as a 40-year low, with the US-Japan yield gap near 300 basis points and the carry trade described as being at maximum risk. In derivatives, FII shorts were described as at or near all-time highs in index futures. Breadth and sentiment indicators were also flagged as weak, including a falling put-call ratio and a weak advance-decline ratio.

Foreign flows and the 2026 context

Foreign investor selling was presented as an overhang for Indian equities in 2026. One data point cited that foreign investors have pulled over ₹2.87 lakh crore from Indian stocks in 2026. The same broader discussion framed the latest fall as part of a global pressure environment that included steep declines in other assets.

In this backdrop, questions surfaced on whether the move is a normal correction after record highs or the start of a larger market reset. The reporting did not offer a single definitive answer, but it did present multiple markers that investors are watching, including drawdowns from peaks and key technical levels.

Bear-market debate and historical context

Market discussion around India also referenced bear-market thresholds and prior drawdowns. In one segment, the Nifty was described at around 23,000 and about 1,000 points away from “official bear territory,” while also stating that the index was down 11.8% from its all-time high. Another stated that bear market confirmation would occur if the Nifty breaks 21,022.

A brief history of major Nifty bear markets was also listed for context: 2000–2002 (Dot-com) with a 53% fall, 2008–09 (GFC) with a 60% fall, and 2020 (COVID) with a 40% fall. These were presented as reference points for how drawdowns can vary across cycles.

What analysts and veterans are saying

Veteran investor Marc Faber warned that Indian equities could correct by as much as 20% from current levels. In an interview cited with Business Standard, he said India may have entered a bear market phase and suggested earnings expectations could eventually disappoint investors. The same coverage noted his comments came despite India’s strong economic growth trajectory and relatively cheaper valuations compared with peak levels seen in 2024.

On South Korea, strategist commentary presented a different framing. Timothy Moe, chief Asia Pacific regional equity strategist and co-head of macro research in Asia, wrote that while the peak-to-trough move meets a widely accepted bear-market definition, it is more appropriate to view the decline in the context of exceptionally strong gains during the past year, and he viewed it as a correction likely followed by recovery after consolidation. At the same time, separate commentary cautioned that a rebound could still be a “dead-cat bounce,” and another technical framework suggested a potential decline toward 4,000 or lower if a distribution phase leads to markdown.

Key levels to watch on Nifty

Despite the sharp fall, technical analysts cited in the coverage said the broader market structure remains intact. Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty weakened in the short term after breaking below its previous swing low and slipping beneath the 50-hour exponential moving average. He also noted the index found support at a key rising trendline connecting multiple recent highs and lows.

De placed immediate resistance at 23,950-24,000. He flagged crucial support at 23,700, adding that a break below that level could trigger a deeper correction. These levels were highlighted as near-term reference points for traders assessing whether the move remains a correction or becomes more directional.

Snapshot: the numbers investors tracked

Conclusion

The week’s market action was defined by a technology-led selloff in Asia, circuit breakers in South Korea, and a sharp drop in Indian benchmarks on weak global cues and profit booking. In India, attention has narrowed to near-term Nifty levels such as 23,950-24,000 resistance and 23,700 support, while broader debate continues around whether the pullback remains a correction. Globally, investors are also tracking oil, rates, and positioning signals as the next sessions unfold.