India’s stock market witnessed a sharp fall on Tuesday morning as heavy selling in IT stocks and weak global signals. |
Mumbai: India’s stock market witnessed a sharp fall on Tuesday morning as heavy selling in IT stocks and weak global signals dragged benchmark indices lower.
At around 10:42 am, the Sensex was down 741 points or 0.89 percent at 82,553. The Nifty slipped below the key 25,500 mark to trade at 25,482.85, falling 205 points or 0.80 percent.
Here are the five main reasons behind today’s market crash:
Heavy Selling in IT Stocks
IT shares saw strong selling pressure after rising concerns about Artificial Intelligence (AI).
Anthropic, an AI company, claimed that its “Claude Code” tools can modernise old software systems at lower cost and less complexity. This raised fears that traditional IT services companies may face business pressure in the future.
The Nifty IT index fell 2.84 percent, making it the worst-performing sector in early trade.
Rupee Weakens Against Dollar
The Indian rupee fell by 7 paise to 90.96 against the US dollar in early trade.
The fall was due to rising global crude oil prices and a stronger dollar. Weakness in domestic stock markets also put pressure on the rupee. However, foreign institutional investor (FII) inflows prevented a sharper fall.
Sharp Fall in US Markets
US stock markets closed sharply lower on Monday.
The Dow Jones fell more than 820 points (over 1.6 percent) and failed to hold the 49,000 level. The S&P 500 and Nasdaq also declined. The S&P 500 has moved back into negative territory for 2026.
The weakness in US markets negatively affected investor sentiment in India.
Trump’s Fresh Tariff Warning
US President Donald Trump maintained a strict stance on tariffs despite a Supreme Court decision.
He warned that countries “playing games” with the US would face higher tariffs. There is uncertainty around a proposed 15 percent tariff for 150 days. The European Union has expressed concern and paused trade agreement talks, increasing global trade tensions.
IBM Crash After AI Concerns
IBM shares fell 13 percent, marking their biggest single-day drop since October 2000.
The fall followed a blog post by Anthropic, which raised questions about IBM’s traditional business model. Investors fear that fast AI adoption could reduce demand for legacy systems and impact revenue of established tech firms.
Disclaimer: This article is for informational purposes only and not investment advice. Stock market investments are subject to risks. Investors should consult certified financial advisors before making any investment decisions.
