The Indian domestic indices experienced significant pressure in today's trading session, with technology stocks bearing the brunt of the sell-off. According to reports from The Financial Express, the Sensex fell 1% while the Nifty dropped below the 23,600 mark, down nearly 1%. The biggest damage was visible in the IT space, where the Nifty IT Index plunged more than 1,000 points in intraday trading, falling over 3.6% and slipping below the 28,300 level. All 10 constituents of the Nifty IT index are trading in the red, reflecting widespread selling across the technology sector. The latest session saw the Sensex crash 1,566 points, or 2%, to an intraday low of 74,449, while the Nifty 50 ended at 23,379.55, down 436 points, or 1.83%. In these four consecutive sessions, the Sensex has crashed 3,400 points, or 4.4%, while the Nifty 50 has shed 4%, indicating sustained market weakness. Latest reports confirm that investors reportedly lost nearly ₹7 lakh crore in a single trading session, as the market faces massive pressure.
The primary driver behind today's tech stock decline was the announcement of OpenAI's new initiative. As reported by The Financial Express, on Monday, OpenAI announced the launch of OpenAI Deployment Company with an initial investment of $4 billion. The company stated the initiative is aimed at helping organisations deploy AI systems across critical business operations, with plans to deploy specialised engineers to work closely with organisations handling complex operational environments. According to Sumit Pokharna, VP – Fundamental Research at Kotak Securities, this announcement has triggered an immediate sell-off, causing the Nifty IT index to slump as everything moves from headcount billing to outcome-based pricing, which is not conducive for Indian IT services companies.
According to Sunny Agrawal, Head of Fundamental Research at SBI Securities, technology stocks have been under pressure over the past six to eight months due to muted earnings growth and growing concerns around AI's impact on future revenue visibility. As reported by The Financial Express, current estimates for FY27 suggest revenue growth could remain largely flat or in the range of 3–4%, reflecting a very modest growth outlook for the industry. Pokharna noted that growth is missing, with Q4 numbers not being impressive and guidance not very encouraging, while there are multiple concerns around deflation risk due to AI adoption.
The sell-off in IT shares was widespread, affecting both large-cap and mid-cap technology companies. According to The Financial Express, Persistent Systems emerged among the biggest losers, falling close to 5%, while Tata Consultancy Services dropped around 4%. Other major names including Tech Mahindra, HCLTech, Wipro, Coforge and Mphasis remained under pressure during the intraday trading session. Infosys and L&T Technology Services also declined sharply, reflecting the broad-based nature of the technology sector's weakness. The broader market decline was even more severe, with the Nifty Midcap 150 index tanking 2.53% and the Nifty Smallcap 250 index plunging 3%, indicating widespread selling across all market segments.
Adding to the tech sector's challenges, the Indian rupee slipped 35 paise to touch a record low of 95.63 against the US dollar amid rising crude oil prices and persistent foreign fund outflows, as reported by The Financial Express. Foreign portfolio investors have continued to reduce exposure to Indian equities, with FPIs remaining net sellers in the cash segment for several months. Since July last year, they have pulled out nearly ₹4.5 lakh crore from Indian equities, contributing to the overall market weakness and making technology stocks among the first sectors to see heavy selling during periods of global uncertainty due to their close linkage to global growth and business spending trends. Latest market reports indicate that investors are now watching global tensions, crude oil prices, and foreign selling very closely as key factors driving current market volatility.
