Sensex falls 790 points; Nifty IT slides 3.7%

What happened in the market

Indian equities turned lower in the session as the Sensex fell more than 600 points and the Nifty slipped below the 24,450 mark, with technology stocks taking the biggest hit. The move came after earlier sessions that showed intraday reversals, with markets struggling to hold on to gains as profit booking emerged. Sectoral action was uneven, with IT sharply underperforming even as some pockets such as banking were referenced as supportive in live market commentary.

The session also coincided with heightened uncertainty in global cues, including headlines around US-Iran developments referenced in live updates. That uncertainty was reflected in volatility indicators in recent market coverage, including a sharp jump in India VIX.

Closing levels: Sensex, Nifty, Bank and IT

The key indices were in the red, led by a steep decline in Nifty IT.

IT stocks led the sell-off

The technology pack was at the centre of the decline. In the day’s narrative highlights, Tech Mahindra was cited as falling 4% and Infosys 3% as the benchmarks slipped.

A separate market update from February 12, 2026, shows how sharp IT-led corrections have been in recent sessions: Tech Mahindra fell 6.40%, Infosys dropped 5.97%, TCS declined 5.77%, HCL Technologies slipped 5.20%, and Wipro fell 4.79%. Those moves underline how quickly heavyweight IT names can pull the headline indices lower when the sector de-rates in a single session.

Volatility rose as uncertainty stayed high

Market coverage also pointed to volatility picking up alongside the drawdown. In one of the live update snippets, India VIX was reported to have risen 9% during a session when benchmarks erased intraday gains and the Nifty hovered around 24,400.

On January 12, 2026, India VIX was reported up 9.33% to an intraday high of 11.95 points, later still higher at 11.56 points (up 5.76%). The repeated references to VIX strength highlight that traders have been pricing in wider near-term swings, particularly around geopolitical headlines and the start of the earnings season.

Market breadth and the “positive breakout” screen

Breadth was described as weak in the live market thread, which is consistent with the day’s risk-off tone. In another session update, market breadth was explicitly negative on the Nifty, with 30 stocks declining and 20 advancing.

At the same time, a “Positive Breakout” note flagged that 14 stocks crossed above their 200-day moving averages (200 DMAs). The data snippet did not list the names, but the signal is often watched as a longer-term technical improvement indicator even when headline indices are under pressure.

Institutional flows: FII selling versus DII support

Flows were another key theme in the broader set of updates. Foreign Institutional Investors (FIIs) were reported as net sellers, with equity outflows of Rs 102 crore on February 24. Domestic Institutional Investors (DIIs), in contrast, were reported as net buyers with purchases of Rs 3,161 crore on the same day.

The divergence matters because it can shape intraday market resilience. Strong domestic buying can cushion declines, but heavy selling in index heavyweights, particularly IT and large financials, can still dominate index direction.

Technical levels traders were watching

Some of the market commentary included clearly defined levels for the Nifty. In one update, Nifty was described as trading below 25,600 with technical resistance at 25,670.

Another technical view said that if Nifty falls below 25,300 (and Sensex below 82,000), the indices could slip toward 25,150 to 25,050 (and 81,400 to 81,200 for Sensex). A separate note said the Nifty needs to hold the 25,500 to 25,600 support zone, while a sustained breakout above 25,800 to 25,850 would be important to stabilise near-term momentum.

How recent sessions have played out

Recent snapshots show alternating phases of sharp down days, intraday reversals, and limited follow-through.

Why this move matters for investors

The day’s decline reinforces a pattern seen across the updates: IT remains a high-beta driver for headline indices when risk sentiment weakens. A Nifty IT drop of 3.71% versus a 0.83% fall in the Nifty 50 shows clear sectoral divergence.

It also underlines how volatility can rise even when some sectors are supportive. Live commentary referenced banking stocks helping keep the Nifty above 24,500 earlier, but a later reversal and weak breadth indicate that leadership has not been consistent.

What to watch next

Investors will likely track whether volatility cools and whether the market can hold key support zones mentioned in the technical commentary. Institutional flow trends, especially whether FII selling persists versus DII support, will remain important.

Earnings-season caution and geopolitical uncertainty were repeatedly cited as overhangs in the updates. The next set of market moves is likely to be shaped by how these factors evolve, alongside sector rotation between IT, financials, and metals that was visible in recent sessions.

Conclusion

Benchmarks ended lower with the Sensex down 790.25 points and the Nifty at 24,371.55, while Nifty IT fell 3.71%, keeping pressure on broader sentiment. Near-term direction will hinge on volatility, sector leadership, and whether support levels highlighted by analysts can hold amid shifting global cues.