MUMBAI, Feb 24 — Sensex plunges 1,069 points in a sharp market correction on Tuesday as heavy selling in information technology stocks dragged benchmark indices significantly lower, pushing the NSE Nifty below the crucial 25,450 support level.
The BSE Sensex declined over 1.2% during intraday trade, marking one of the steepest single-session losses in recent weeks. The NSE Nifty 50 fell nearly 1.4%, reflecting broad-based weakness across sectors.
Market participants attributed the decline to a combination of global tech weakness, profit booking, and cautious investor sentiment amid volatile international cues.
IT Stocks Lead the Sharp Decline
The primary drag on the market came from the information technology sector.
The Nifty IT index dropped approximately 4.7%, making it the worst-performing sector of the session. Shares of Tech Mahindra and HCL Technologies fell around 6% each, while other heavyweight IT names also registered steep losses.
Investors reacted to concerns about global demand outlook and potential moderation in technology spending by overseas clients. Given the sector’s heavy weightage in benchmark indices, the IT sell-off amplified the overall market decline.
Broader Market Weakness
The selling pressure extended beyond IT stocks.
Banking and financial shares traded lower, although losses were relatively contained compared to technology counters. Auto and metal stocks also slipped as market breadth turned decisively negative.
On the Bombay Stock Exchange, declining stocks significantly outnumbered advancing ones, signaling widespread participation in the downturn.
Mid-cap and small-cap indices mirrored the weakness, indicating that risk aversion was not limited to large-cap counters.
Global Market Influence
Global cues played a major role in shaping domestic market direction.
Overnight losses in U.S. equities, particularly technology-heavy indices, contributed to cautious positioning among Indian investors. Asian markets also traded mixed to lower, reinforcing risk-off sentiment.
Rising U.S. Treasury yields and a firm U.S. dollar index added pressure on emerging market equities, including India.
Market participants cited uncertainty around global growth prospects and sector-specific technology headwinds as contributing factors.
Currency and Commodity Impact
The Indian rupee weakened against the U.S. dollar during the session, trading near ₹90.95 per dollar.
A stronger dollar typically pressures emerging market currencies and may affect capital flows. Additionally, firm crude oil prices contributed to macroeconomic concerns.
While the energy sector remained relatively stable, rising oil prices are closely monitored due to their impact on inflation and trade balances.
Institutional Activity and Derivatives Positioning
Foreign institutional investor (FII) activity remains critical to market stability.
Recent inflows had supported valuations, but increased volatility in global markets may influence overseas investor positioning.
Derivatives data indicated higher hedging activity, with traders increasing protective positions amid heightened uncertainty.
Options volumes surged during the session, reflecting growing caution among participants.
Technical Levels Under Watch
Market technicians identified the 25,450 level on the Nifty as a key technical support zone.
With the index slipping below that threshold, analysts warned of potential further downside if selling persists.
The Sensex, after plunging 1,069 points, is now approaching near-term support bands that could determine short-term market direction.
Stabilization in IT stocks may be necessary for any meaningful rebound.
Investor Sentiment
Investor sentiment remains fragile following the sharp correction.
Advisory desks noted that profit booking in high-valuation sectors often accelerates during periods of global uncertainty.
While long-term fundamentals remain intact, short-term volatility has increased, prompting cautious positioning.
Market participants will closely monitor global developments, currency movement, and sector-specific updates in the coming sessions.
Outlook
Near-term direction will depend on:
- Stabilization in global technology stocks
- U.S. bond yield movement
- Dollar index trends
- Institutional fund flows
- Domestic macroeconomic signals
If buying emerges at lower levels, benchmarks could attempt a recovery. However, continued weakness in technology counters may keep pressure on indices.
For now, Sensex plunges 1,069 points marks a significant shift in short-term momentum, underscoring the sensitivity of Indian markets to global tech developments.