MUMBAI, Feb 24 — Sensex down 800 points in a sharp sell-off on Tuesday as heavy pressure in IT stocks dragged benchmark indices lower, while the NSE Nifty slipped below the key 25,500 level amid weak global cues and rising volatility.
The BSE Sensex declined around 800 points during intraday trade, marking one of the steepest single-session declines in recent weeks. The NSE Nifty 50 dropped more than 240 points, breaching immediate support levels as investors trimmed exposure to technology heavyweights.
IT Stocks Lead the Decline
The downturn was driven primarily by aggressive selling in information technology stocks.
The Nifty IT index fell over 3%, making it the worst-performing sector of the session. Major software exporters saw significant declines as global demand concerns resurfaced.
Technology companies derive a large share of revenue from the United States and Europe. Weak global tech sentiment, coupled with currency movement, weighed heavily on valuations.
Broader Market Weakness
Selling pressure was not limited to IT stocks.
Auto, metal, and financial counters also traded in the red, although declines were comparatively moderate. Market breadth remained negative, with declining stocks outnumbering advancing ones across both the BSE and NSE.
Mid-cap and small-cap indices also recorded losses, reflecting broader risk aversion among traders.
Global Cues Add Pressure
International markets contributed to the cautious mood.
Overnight losses on Wall Street and mixed Asian equity performance created a risk-off environment. Investors remained wary ahead of key global economic data releases.
Rising US bond yields and a firm dollar index added further pressure on emerging market equities, including India.
Rupee Weakens Against Dollar
The Indian rupee weakened during the session, trading near ₹90.95 against the US dollar.
A stronger dollar typically pressures emerging market currencies and raises import costs. Rising crude oil prices also contributed to currency weakness.
Currency fluctuations can affect sectors with overseas exposure, particularly IT and export-oriented companies.
Institutional Flow Dynamics
Foreign institutional investor (FII) activity remains closely watched.
Recent inflows had supported Indian equities, but heightened global volatility may prompt cautious positioning. Derivatives data showed rising hedge positions, indicating traders are preparing for continued swings.
Domestic institutional investors (DIIs) were seen providing partial support at lower levels.
Technical Levels in Focus
Market technicians identified the 25,500 level on the Nifty as a key technical zone.
With the index slipping below that threshold, analysts suggested further downside cannot be ruled out if selling persists.
The Sensex, after falling 800 points, is testing near-term support bands. Sustained weakness in IT stocks may extend the correction.
Volatility Rises
India’s volatility index ticked higher during the session, reflecting increased uncertainty.
Options activity surged as traders hedged against further downside. Elevated turnover in both cash and derivatives segments signaled strong participation during the decline.
Short-term traders adjusted positions ahead of weekly derivatives expiry, amplifying intraday movements.
Earnings Sensitivity
Investors are also evaluating the potential impact on upcoming earnings.
IT firms face headwinds from global demand trends, currency shifts, and cautious corporate technology spending in key markets.
Market participants said forward guidance from large IT companies will be crucial in determining whether the correction stabilizes.
Outlook
The immediate direction of the market will depend on:
- Stabilization in IT stocks
- Global equity performance
- Dollar movement
- Crude oil prices
- Institutional fund flows
If buying emerges at lower levels, the market could attempt a rebound. However, sustained selling pressure may keep indices under stress in the near term.
For now, Sensex down 800 points reflects heightened caution among investors amid sector-specific weakness and fragile global sentiment.