Sensex, Nifty slide Feb 24: 6 drivers of IT rout

What happened in the market

Indian equity benchmarks ended sharply lower on Tuesday, February 24, as heavy selling in information technology stocks dragged the broader market down. The move snapped a two-day winning streak and extended the volatile tone seen through the month. Traders pointed to a mix of sector-specific pressure in IT and global risk factors that kept investors defensive.

By the close, the BSE Sensex fell 1,068.74 points to 82,225.92. The NSE Nifty 50 declined 276.35 points to 25,436.65, slipping below the 25,450 mark during the session. Broader indices also weakened, showing that the selling was not limited to large caps.

The day’s key numbers

The market’s breadth showed clear risk-off positioning. Decliners outnumbered advancers sharply on the BSE, and hundreds of stocks slipped to fresh 52-week lows. Sectorally, IT was the biggest drag, while a few pockets such as metals managed to close higher.

IT sell-off: the main trigger

Selling was concentrated in technology counters through the session, pulling the headline indices lower. The Nifty IT index fell 4.74% and was described as being down over 20% over the last month. Several frontline names ended deep in the red, reflecting broad-based liquidation rather than stock-specific weakness.

Among the sharper moves cited, LTIMindtree fell 6.43% to Rs 4,521, Tech Mahindra dropped 6.17% to Rs 1,352, HCLTech slipped 5.83% to Rs 1,343, and Coforge declined 5.24% to Rs 1,221.50. The weakness was also reported across other major IT names including Infosys, Tata Consultancy Services, Wipro, Persistent Systems, and Mphasis.

AI disruption fears return to the centre

A fresh wave of concern around artificial intelligence and automation tools added to the pressure on Indian IT stocks. The market reaction followed reports linked to Anthropic launching products such as its Claude Cowork Agent and commentary that its Claude Code Tool can help modernise legacy systems built on COBOL. This sharpened investor focus on whether automation could reduce the need for traditional, labour-intensive outsourcing work.

Another specific catalyst mentioned was a widely shared Citrini Research note titled “The 2028 Global Intelligence Crisis”. The note argued that AI could structurally erode the labour arbitrage model that has historically supported Indian IT services. In this tape, even routine earnings and demand discussions struggled to offset fears of contract cancellations and margin pressure.

Global cues: tariffs, yields, and geopolitics

Global risk sentiment also weighed on Dalal Street. The article text referenced renewed uncertainty around U.S. tariff policy and attention on the U.S. Supreme Court verdict on Trump’s tariffs, with potential implications for India-U.S. trade relations and domestic sentiment. It also noted that foreign investor selling and rising bond yields contributed to the pressure.

Geopolitical headlines were another overhang, including mentions of escalating tensions in the Iran–Israel conflict and comments hinting at potential escalations in the Iran-U.S. conflict. Some separate market-day headlines in the supplied text also linked sharp equity falls to oil moving above $118 and large market-cap erosion, including figures such as ₹1,200,000 crore (₹12 lakh crore) and ₹940,000 crore (₹9.4 lakh crore) wiped out in those sessions.

What market participants said

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the weakness in tech stocks tied to potential AI impact was continuing. He added that weakness in the ADRs of Indian IT companies suggested the segment could remain under pressure.

Ajit Mishra, SVP, Research at Religare Broking, linked the fall to renewed concerns over global trade developments, geopolitical tensions that kept crude elevated, and persistent pressure on technology stocks amid fears of AI-led disruption. Vinod Nair of Geojit Investments also pointed to AI-driven disruption concerns and trade and tariff worries adding to risk aversion. Ponmudi R of Enrich Money said investors refrained from building aggressive positions amid mixed global cues and global macro uncertainty.

How other sectors and broader market behaved

While IT dominated the downside, the sectoral picture was mixed in parts. The supplied text said 5 out of 11 key sectoral indices ended in positive territory, with the Nifty Metal index ending 0.93% higher as the top gainer on the day. At the same time, broader indices remained weak, with the Nifty Midcap 100 down 0.32% and the Nifty Smallcap 100 down 0.55%.

The breadth data reinforced that the correction extended beyond a few heavyweights. With 357 stocks hitting 52-week lows versus 91 touching fresh 52-week highs, the session reflected defensive positioning and reduced appetite for risk.

Recent context: February volatility shows up again

The broader narrative in the supplied material suggests February has seen repeated sessions with declines exceeding 1% in the benchmarks. It also included details of a separate down session on February 13, when the Sensex closed at 82,626.76, down 1,048.16 points, while the Nifty ended at 25,471.10, down 336.10 points.

Why the sell-off matters

The February 24 move stood out because it was driven by a sharp, thematic de-rating in a key index heavyweight sector. With IT companies having meaningful exposure to the U.S. market, changes in global tech sentiment, U.S. rate expectations, and AI narratives can quickly transmit into Indian benchmarks.

For investors, the session highlighted two parallel sensitivities: headline risk from geopolitics and crude oil, and sector-specific shocks such as AI-led disruption fears. The combination can tighten risk appetite quickly, even when parts of the market show relative resilience.

Conclusion

Indian equities closed lower on February 24 with IT stocks at the centre of the sell-off, while global tariff uncertainty, bond yield moves, and geopolitical tension added to the cautious tone. The next cues for traders remain tied to global developments that influenced the session, including U.S. policy signals, tech-sector risk sentiment, and geopolitical headlines that keep crude oil volatile.