Stock market today: Nifty50 and BSE Sensex, the equity benchmarks, crashed in trade on Friday amid weak global cues and the continued IT stocks selloff. While Nifty50 went below 25,600, BSE Sensex was down over 700 points. At 10:45 AM, Nifty50 was trading at 25,570.30, down 237 points or 0.92%. BSE Sensex was at 82,943.66, down 731 points or 0.87%.The stock market slide was led by continued selloff in IT shares which weighed heavily on market sentiment amid rising concerns about disruption driven by artificial intelligence. Large-cap technology stocks such as Infosys, TCS, HCLTech and Wipro led the losses. The crash wiped out approximately Rs 4.62 lakh crore in investor wealth, reducing the total market capitalisation of BSE-listed companies to around Rs 467 lakh crore.
Why is stock market down today? Top 5 reasons
IT sector stocks crashSelling pressure in IT stocks intensified for a second straight session after the American depositary receipts of Infosys and Wipro dropped nearly 10 percent overnight. During Friday’s trading, the Nifty IT index fell more than 4 percent, taking its two-day decline close to 10 percent. Major sector players including TCS, Infosys, Wipro, Tech Mahindra, HCLTech and Mphasis declined between 4 and 6 percent, indicating widespread weakness across the segment.Negative sentiment strengthened after US-based artificial intelligence startup Anthropic introduced a new enterprise-oriented tool designed for corporate legal teams. The company, known for its Claude chatbot, said that the platform can automate several tasks such as contract reviews, non-disclosure agreement sorting, compliance processes, preparation of legal briefs and standardised responses. This development has raised concerns about the long-term demand outlook for traditional IT services.“Tech stocks, reeling under the Anthropic shock, are unlikely to recover soon,” warned V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. He added that Indian IT may continue to face pressure in the near term, while a rotation of capital toward stronger-performing sectors could support stocks outside the technology space.Weak global equity marketsGlobal market sentiment remained fragile after sharp losses on Wall Street on Thursday, driven largely by heavy selling in technology stocks. Investors turned cautious amid growing concerns that artificial intelligence could disrupt earnings visibility and compress margins across the sector.The Nasdaq, which has a high concentration of technology companies, fell around 2 percent, while broader US indices also declined as market participants evaluated fresh labour market data and positioned themselves ahead of the closely monitored January inflation figures. The Dow Jones Industrial Average dropped 669.42 points, or 1.34 percent, closing at 49,451.98. The S&P 500 slipped 108.71 points, or 1.57 percent, to 6,832.76, and the Nasdaq Composite declined 469.32 points, or 2.03 percent, ending at 22,597.15.Asian equities mirrored the weakness on Friday, pulling back from recent record levels as concerns over profitability pressures in the technology sector weighed on major stocks such as AppleDollar strength, weak rupeeA stronger US dollar, which extended gains for a third consecutive session to 96.93, along with a softer rupee, added to market pressure. Weak technical set-upThe Nifty closed in negative territory on Thursday, slipping out of its recent consolidation range and forming a short-term pattern of lower highs and lower lows. The 26,000 level continues to act as a significant resistance zone, supported by strong call writing activity and multiple failed attempts to move higher. Geopolitical tensions lingerOngoing geopolitical uncertainty in the Middle East has continued to weigh on investor sentiment after Donald Trump warned that the United States could consider action against Iran if negotiations over a nuclear agreement fail, even as diplomatic efforts remain underway. Adding to market unease, Trump indicated that deploying an additional aircraft carrier to the region is under consideration as Washington and Tehran prepare to restart discussions.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)