Indian equity markets witnessed a sharp downturn on Tuesday, February 24, 2026, as the benchmark Sensex and Nifty indices slumped nearly 1% in early trade. The primary driver of the rout was a brutal selloff in the Information Technology (IT) sector, compounded by escalating global trade uncertainty following U.S. President Donald Trump’s latest tariff maneuvers. By mid-morning, the BSE Sensex had shed over 800 points to trade near 82,481, while the NSE Nifty 50 dropped 230 points to slip below the 25,500 mark.
The IT index bore the brunt of the damage, with industry giants like TCS, Infosys, and HCL Technologies leading the losers. Investor confidence in the tech sector was severely rattled by reports from the U.S. highlighting a new wave of AI-led disruption. Specifically, a massive overnight crash in IBM shares—sparked by fears that advanced AI tools are now capable of automating legacy system upgrades—spilled over into Dalal Street. Analysts noted that the weakness in Indian IT ADRs (American Depository Receipts) suggests a continued period of pressure for the segment as the industry grapples with shifting demand
Adding to the domestic tech rout was a fresh surge in global trade anxiety. Following a U.S. Supreme Court ruling that struck down previous trade barriers, President Trump intensified his rhetoric, signaling a “tougher” 15% tariff under the Trade Act of 1974 for countries that “play games” with the court’s decision. Although the effective rate for many Indian goods had recently seen a decrease under an interim trade deal, the threat of new, unpredictable surcharges has left investors wary. The uncertainty was further exacerbated by the European Union’s decision to freeze its own trade talks with the U.S. in light of the tariff volatility.
Market sentiment was also weighed down by rising crude oil prices, with Brent crude climbing toward $72 per barrel amid heightened tensions in the Middle East. A weakening Rupee, which slipped against the dollar on Tuesday, further stoked fears of persistent inflation and continued capital outflows by Foreign Institutional Investors (FIIs). While banking and steel stocks like SBI and Tata Steel offered some resistance to the downward trend, the broader market remains on edge ahead of President Trump’s State of the Union address, which is expected to provide further clarity on his administration’s economic and trade trajectory.
