Sensex, Nifty slide over 1% as IT rout and weak global cues weigh on markets

Indian benchmark indices fell sharply on Friday afternoon, dragged lower by sustained selling in information technology stocks amid fragile global sentiment and concerns over artificial intelligence-led disruption to the sector.

By 1.50pm, the BSE Sensex was down 916.85 points, or 1.1 per cent, at 82,758.07. The broader Nifty 50 declined 285.75 points, or 1.11 per cent, to 25,521.45.

All 16 major sectoral indices were trading in the red. The metal index slipped around 3 per cent, led by a 6 per cent fall in Hindalco after the company reported a 45 per cent decline in quarterly profit. The weakness extended to the broader market, with the Nifty Smallcap100 and Nifty Midcap100 indices falling 2 per cent and 1.8 per cent respectively. Market breadth remained negative, with more than 2,500 shares declining against fewer than 1,000 advancing.

The IT index fell for a third consecutive session, losing about 5 per cent as investors reacted to concerns that rapid advances in artificial intelligence could disrupt the sector’s labour-intensive business model. The index had already dropped 5.5 per cent in the previous session.

Heavyweights such as Infosys, Tata Consultancy Services, HCL Technologies and Tech Mahindra were among the biggest drags on the market.

The IT index is down more than 11 per cent this week and has declined nearly 17 per cent so far in 2026, exceeding its fall for the entirety of last year.

Ajit Mishra, senior vice-president (research) at Religare Broking, said the sharp correction in IT stocks had dented investor confidence, with traders reacting to heavy global selling in technology counters.

Sentiment was further dampened by weakness in overseas markets. Asian indices including Hong Kong’s Hang Seng, Japan’s Nikkei 225 and Shanghai’s SSE Composite traded lower.

In the United States, the Nasdaq Composite fell more than 2 per cent overnight ahead of key inflation data, while the S&P 500 and the Dow Jones Industrial Average each dropped over 1 per cent. Stronger-than-expected US jobs data in January reduced expectations of an imminent interest rate cut by the Federal Reserve.

The India VIX, often referred to as the market’s fear gauge, jumped more than 10 per cent to 12.86, signalling heightened uncertainty and risk aversion among investors.

VK Vijayakumar, chief investment strategist at Geojit Investments Limited, said markets had entered a turbulent phase, with the sell-off in IT — a key profit driver for corporate India — weighing heavily on overall sentiment. He added that the full impact of the recent AI-related shock on the sector remained unclear.

Meanwhile, the rupee weakened by 8 paise to 90.69 against the US dollar in early trade, pressured by a stronger American currency and negative domestic equities.

Anand James, chief market strategist at Geojit Investments Limited, said the Nifty could test the lower end of the 25,700–26,220 range observed earlier this week. Immediate support is seen at 25,500, with further weakness potentially dragging the index towards 24,571.

A sustained move above 25,750 may ease bearish momentum, while reclaiming the 25,830–25,900 zone could signal a revival in positive sentiment, he added.

With agency input