SENSEX Drops Over 800 Points, NIFTY50 Below 25,500: Here Is Why Markets Are Falling on Tuesday

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Posted February 24, 2026

SENSEX Drops Over 800 Points, NIFTY50 Below 25,500: Here Is Why Markets Are Falling on Tuesday

The Indian stock market witnessed a sharp sell-off on Tuesday, February 24, sending shockwaves across Dalal Street. The SENSEX crashed over 800 points, while the NIFTY50 slipped below the crucial 25,500 mark, triggering panic among investors. Heavy selling pressure in IT stocks, weak global cues, rising geopolitical tensions, and uncertainty around artificial intelligence disruption combined to create the perfect storm for today’s market meltdown.

By mid-morning, investor sentiment had turned extremely cautious as markets struggled to find any meaningful support. So, what exactly caused this sudden fall? Let’s break it down in simple terms.

Market Snapshot – What Happened Today?

Early Morning Sell-Off Explained

Right from the opening bell, Indian markets were under pressure. Bears dominated the session as selling accelerated across sectors. Within minutes, both benchmark indices slipped sharply into the red, triggering widespread concern among retail and institutional investors alike.

The SENSEX plunged as much as 813 points, while NIFTY50 hit an intraday low of 25,482, breaching key psychological support levels.

Key Index Levels and Intraday Lows

  • SENSEX: Down 742 points at 82,552

  • NIFTY50: Down 206 points at 25,508

  • NIFTY IT: Down 3.15%

  • NIFTY Midcap 100: Down 0.73%

  • NIFTY Smallcap 100: Down 0.90%

The overall market breadth remained extremely negative, with declining stocks massively outnumbering advancing shares, signaling a broad-based sell-off.

Top Reasons Behind Today’s Market Fall

Global Market Weakness

Indian markets do not operate in isolation. Weak global cues, especially from the US markets, heavily influenced today’s sell-off. Overnight, Wall Street witnessed sharp declines, which spooked investors worldwide.

Trump’s Tariff Shockwaves

Former US President Donald Trump reignited global trade tensions by announcing temporary 15% tariffs on multiple countries. This sudden policy move raised fears of a fresh global trade war, pushing investors towards risk-off mode.

Markets hate uncertainty, and this tariff shock introduced plenty of it.

Artificial Intelligence Disruption in IT Sector

The latest AI offering by Anthropic has intensified fears that traditional IT companies might lose business. Its new Claude Code tool can modernize legacy systems, including COBOL-based platforms, which form a major revenue base for Indian IT firms.

Investors fear that AI automation may drastically reduce demand for conventional IT outsourcing services.

Monthly Derivatives Expiry Pressure

Tuesday also marked the monthly expiry of February futures and options contracts, which typically brings increased volatility. Traders square off positions, leading to sharp intraday swings and sudden selling pressure.

IT Stocks Under Severe Pressure

Why Infosys, TCS, HCL, and Wipro Are Falling

The IT sector took the biggest hit today. Stocks like Infosys, TCS, HCL Technologies, Tech Mahindra, and Wipro dropped between 1.7% and 3.7%, dragging the indices lower.

AI Threat to Traditional IT Business Models

Artificial intelligence is rapidly reshaping how software is developed and maintained. Tools like Claude Code can automate tasks that once required large teams, reducing the need for traditional outsourcing.

This poses a direct threat to Indian IT companies, which depend heavily on legacy system maintenance contracts. Investors fear shrinking margins, declining revenues, and job losses, fueling aggressive selling.

Sectoral Performance Overview

Biggest Losers Today

  • NIFTY IT: -3.15%

  • Auto: -1%

  • FMCG: -0.8%

  • Realty: -0.7%

  • Media: -0.9%

  • Healthcare: -0.6%

Which Sectors Showed Resilience?

  • NIFTY Oil & Gas: +0.3%

  • Metal stocks: Marginal gains

  • PSU Banks: Mixed performance

Energy stocks gained due to rising crude oil prices, offering limited support to the broader market.

Broader Market Damage – Midcaps & Smallcaps Bleed

Why Broader Markets Are Falling Faster

Midcap and smallcap stocks faced even heavier selling pressure. These segments are typically more volatile, and during uncertain times, investors tend to exit risky positions first.

Retail Investor Panic Selling

Many retail investors, seeing sharp declines, rushed to book profits or cut losses, adding fuel to the fall. This panic selling intensified the correction in broader markets.

Global Cues and US Market Influence

Wall Street Crash and Its Ripple Effect

US markets closed sharply lower:

  • Dow Jones: -1.66%

  • S&P 500: -1%

  • Nasdaq: -1.13%

This downturn reflected fears of slower economic growth, rising tariffs, and AI-related business disruptions.

Fear of Rising Global Trade Tensions

Trump’s tariff announcements revived fears of escalating trade wars, which could impact global supply chains, corporate earnings, and investor confidence.

Stock-Specific Action – Top Gainers and Losers

Biggest Losers of the Day

  • Eternal: -3.84%

  • HCL Technologies

  • Infosys

  • Bharti Airtel

  • TCS

  • Tech Mahindra

  • Wipro

  • Bajaj Auto

  • Bajaj Finance

Stocks That Managed to Rise

  • ONGC

  • Coal India

  • State Bank of India

  • Power Grid

  • JSW Steel

  • Hindalco

Crude Oil Impact and ONGC Rally

Rising Oil Prices and Energy Stocks

Crude oil prices surged above $72 per barrel, lifting ONGC shares. Higher oil prices improve revenue prospects for upstream companies, explaining ONGC’s relative strength amid broader market weakness.

What Should Investors Do Now?

Short-Term Strategy

If you're a short-term trader, caution is the name of the game. Volatility remains high, and sharp swings could continue. Stick to strict stop-loss levels and avoid aggressive leveraged positions.

Long-Term Investment View

For long-term investors, corrections offer opportunities. High-quality stocks become available at discounted valuations. Focus on fundamentally strong companies and avoid panic-driven decisions.

Remember, every market crash creates tomorrow’s wealth.

Expert Opinions and Market Outlook

Technical Levels to Watch

  • NIFTY Support: 25,400 – 25,300

  • NIFTY Resistance: 25,700 – 25,850

Key Events That Could Move Markets Ahead

  • US inflation data

  • Federal Reserve policy cues

  • Global geopolitical developments

  • Corporate earnings updates

Risk Factors to Monitor Closely

  • Escalation of global trade tensions

  • Rapid AI disruption impacting IT earnings

  • Rising crude oil prices

  • Volatile foreign institutional investor flows

Conclusion

Tuesday’s sharp fall in the Indian stock market reflects a perfect mix of global uncertainty, AI disruption fears, tariff tensions, and technical pressures. While the sudden drop might seem alarming, seasoned investors understand that such volatility is part of the market cycle.

Rather than reacting emotionally, this is the time to stay calm, review portfolios, and look for smart buying opportunities. Markets may fall today, but history shows they always rise stronger tomorrow. 

Disclaimer

The information provided in this article is for educational and informational purposes only. It does not constitute financial, investment, legal, or tax advice. Please consult with a certified financial advisor or a SEBI-registered professional before making any investment decisions. The author and publisher are not responsible for any financial losses or legal consequences incurred as a result of using this information

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