The Indian equity markets faced a decline on Tuesday, erasing gains from the previous session, mirroring a sell-off in US equities influenced by AI disruptions impacting global technology stocks. Sensex dropped 577 points to 82,717, while Nifty fell 161 points to 25,552 by 9:26 am. Main broad-cap indices, including Nifty Midcap 100 and Nifty Smallcap 100, also experienced declines in line with the benchmark indices.
Major sectoral indices, except Nifty metal and oil and gas, traded in the red. Nifty IT saw a significant drop of 2.84%, while Nifty realty and media also faced losses of 0.90% and 0.32%, respectively. Market sentiment was affected by renewed tariff-related uncertainties, following US President Donald Trump’s introduction of a new global tariff framework.
Despite some clarity provided by recent adjustments in the US–India trade arrangement, President Trump’s tariff announcements introduced near-term uncertainty for export-oriented sectors. Analysts noted that this uncertainty might keep risk appetite in check at the beginning of the session. Market watchers highlighted that immediate support for Nifty is expected in the 25,600-25,500 range, with resistance at the 25,800 level.
In Asian markets, China’s Shanghai and Shenzhen indices showed gains, while Japan’s Nikkei and South Korea’s Kospi also saw positive movements. However, Hong Kong’s Hang Seng Index experienced a decline. The US markets recorded significant losses, with Nasdaq, S&P 500, and Dow Jones all ending lower. On February 23, foreign institutional investors (FIIs) were net buyers of equities worth Rs 3,483 crore, while domestic institutional investors (DIIs) were net sellers of equities worth Rs 1,292 crore.
