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Indian stock market crashes as Sensex plunges 1,300 points and ₹6.3 lakh crore in investor wealth evaporates. Explore 6 key reasons behind today’s market fall including IT selloff, AI disruption fears, Trump tariff threats, rupee weakness, and global volatility.
Indian equity markets witnessed a sharp selloff as benchmark indices crashed on Tuesday, erasing nearly ₹6.3 lakh crore in investor wealth. The BSE Sensex fell over 1,326 points to hit an intraday low of 81,968, while the Nifty 50 slipped below the 25,350 mark amid heavy selling in IT and auto stocks.
Total BSE market capitalisation dropped to approximately ₹462 lakh crore, reflecting widespread panic triggered by global tech disruption fears, geopolitical tensions, and macroeconomic headwinds.
| Index | Intraday Low | Points Lost | % Change |
|---|---|---|---|
| BSE Sensex | 81,968 | -1,326 | ~ -1.6% |
| Nifty 50 | Below 25,350 | -374 | ~ -1.5% |
| Nifty IT Index | 30,849 | -2%+ | Sector drag |
| BSE MCap | ₹462 lakh crore | -₹6.3 lakh crore | Wealth erosion |
Heavy selling in IT stocks was the primary trigger.
Shares of:
fell between 2% and 6%.
The catalyst was Anthropic’s announcement that its Claude Code tool can modernize legacy COBOL systems using AI automation.
COBOL still powers:
If AI significantly reduces modernization costs, traditional IT services firms could face margin compression.
| Metric | Value |
|---|---|
| Current Price | ₹1,334 |
| % Fall | -6.47% |
| Market Cap | ₹3,62,627 Cr |
| P/E Ratio | 21.98 |
| Dividend Yield | 4.50% |
| 52W High / Low | ₹1,780 / ₹1,302 |
| Beta | 0.86 |
While valuation remains reasonable relative to peers, AI disruption risk has triggered sentiment-based selling.
Former US President Donald Trump warned of introducing a 15% global tariff under Section 122 of the Trade Act of 1974 after the Supreme Court struck down earlier tariffs.
This revived fears of:
Indian IT and auto companies with U.S. exposure are particularly vulnerable.
Overnight in the U.S.:
| Index | % Change |
|---|---|
| S&P 500 | -1.0% |
| Nasdaq | -1.1% |
| IBM | -13% |
The Nasdaq decline reflected concerns about AI displacing traditional software businesses.
Asian markets followed:
| Index | % Change |
|---|---|
| MSCI Asia ex Japan | -0.2% |
| South Korea | Declined |
| Japan Nikkei | +0.7% |
Global risk-off sentiment amplified selling in India.
Tuesday’s selloff coincided with weekly Nifty derivatives expiry.
Key effects:
When large options positions are squared off, even moderate selling can snowball into sharper index declines.
The Indian Rupee slipped to 90.95 against the US dollar.
Currency weakness combined with global uncertainty typically accelerates equity volatility.
Trump signaled possible military action against Iran if negotiations fail.
Iran responded that any U.S. strike would be treated as aggression.
Oil market implications:
| Sector | Impact | Reason |
|---|---|---|
| IT | High Negative | AI disruption + US exposure |
| Auto | Negative | Global demand concerns |
| Banking | Moderate | Risk sentiment pressure |
| FMCG | Defensive | Limited downside |
| Energy | Volatile | Oil risk |
The market reaction appears to be a mix of:
India’s long-term growth fundamentals remain intact, but near-term volatility is elevated.
| Metric | Value |
|---|---|
| Investor Wealth Loss | ₹6.3 lakh crore |
| BSE Market Cap After Fall | ₹462 lakh crore |
| IT Index Decline | 2%+ |
| Sensex Intraday Fall | 1,326 points |
Key Nifty levels:
| Support | Resistance |
|---|---|
| 25,200 | 25,800 |
| 25,000 | 26,200 |
If 25,200 breaks decisively, downside risk toward 25,000 may intensify.
Today’s 1,300-point crash is a combination of:
This appears to be a sharp valuation reset rather than a structural collapse of India’s economy.
However, tech-heavy portfolios may continue facing pressure until clarity emerges on AI’s real impact on legacy IT modernization revenues.
Volatility likely to remain high in the near term.
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