The BSE Sensex declined over 500 points or 0.60% to a day’s low of 83,703, while the Nifty 50 was down 145 points, or down 0.5% to a day’s low of 25,808. Earlier this week, the frontline index reclaimed the 26,000 mark.
On the 30-stock Sensex, Infosys, TCS, Tech Mahindra, HCL Tech, HUL, and Eternal were the major laggards, falling up to 5%. Gains in ICICI Bank, Bajaj Finance, and SBI weren’t enough to turn the tide.
Here are the major factors behind today’s fall
1.) IT Selloff
The bloodbath was broad-based, with the Nifty IT index plunging nearly 4% as heavyweights such as Infosys, HCLTech, Mphasis and Wipro tumbled 4–5% each, dragging the entire sector deep into the red. The rout wiped out roughly Rs 1.3 lakh crore in market capitalisation, pulling the combined value of Nifty IT constituents down to around Rs 27.6 lakh crore.
The bearish sentiment stems from US artificial intelligence startup Anthropic, which unveiled a new tool designed specifically for corporate legal teams earlier this month. Anthropic, the company behind the Claude chatbot, said the product is capable of automating several legal functions, including contract reviews, non-disclosure agreement triage, compliance workflows, legal brief preparation and standardised responses.
“Tech stocks, reeling under the Anthropic shock, are unlikely to recover soon,” warned Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments. “Indian IT will continue to struggle. The switch from IT to other segments will help performing stocks in performing sectors.”
2.) US Jobs data
Sentiment remained cautious after a stronger-than-expected January jobs report. While the data reassured investors about the resilience of the U.S. economy, it also strengthened expectations that the Federal Reserve may slow the pace of interest-rate cuts, weighing on market mood.
While traders are still banking on at least one 25-basis-point cut in June, the probability that rates would hold steady that month crept up to 41% from 24.8%, according to the latest data from CME Group’s FedWatch tool.
3.) Weak HUL Q3
FMCG bellwether HUL declined 5% to drag the index lower. It reported a 30% decline in consolidated net profit to Rs 2,188 crore from continuing operations for the third quarter of FY26. The company’s revenue from continuing operations came in at Rs 16,441 crore, marking a 5.6% year-on-year jump from Rs 15,556 crore reported in the corresponding quarter of the previous financial year, HUL said in a regulatory filing.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for continuing operations stood at Rs 3,788 crore, higher by 3% from the same quarter last year. However, the EBITDA margin declined by 70 basis points YoY to 23.3%. One basis point is equal to 0.01% (one-hundredth of one percent).
4.) Profit Booking
– 50-share Nifty snapped a 4-day gaining streak on the bourses. “Nifty 50 opened with a mild gap-down, and near-term momentum has turned slightly subdued as profit booking dragged the index below the 25,900 mark. RSI is hovering in the mid-50s, indicating neutral momentum without strong directional conviction,” Ponmudi R, CEO of Enrich Money said.
On the downside, a sustained break below 25,800 could open room for short-term consolidation or a mild retracement towards the 25,700–25,600 zone. On the upside, a decisive breakout and close above 26,000, supported by strong volumes, is essential to revive bullish momentum towards 26,100–26,300. In the early hours, price action is likely to remain range-bound, with stock-specific triggers guiding intraday movement unless a strong directional catalyst emerges.
5.) Geopolitical tensions linger
Rising geopolitical tensions in the Middle East also rattled market sentiment after U.S. President Donald Trump warned of possible action against Iran if a nuclear deal is not reached, even as diplomatic talks continue. The discussions come amid rising tensions in the Middle East and ongoing negotiations aimed at curbing Iran’s nuclear ambitions. Netanyahu was expected to push for a tougher deal that not only halts Iran’s uranium enrichment but also restricts its ballistic missile programme and support for proxy groups such as Hamas and Hezbollah. Iran has indicated willingness to place limits on its nuclear programme in exchange for sanctions relief, though it has rejected broader demands beyond the nuclear issue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)