Market Impact Summary

Indian equities opened Friday under heavy pressure, extending Thursday’s brutal sell-off as AI-driven panic crushed IT stocks, triggering a ₹2.8 lakh crore erosion in investor wealth in just one session.

Contents

Live Market Snapshot (Closing Basis)Why Did Markets Crash So Sharply? Stock-Specific Action: Top Movers Trader’s Market Strategy: Key Levels That Matter Now What Traders Should Watch Next Final Verdict Frequently Asked Questions

The BSE Sensex collapsed 559 points to 83,675, while Nifty 50 slipped 147 points to close at 25,807, decisively breaking the 25,900 support zone, signaling fresh downside risk for short-term traders.

GIFT Nifty futures signaled a weak opening, pointing to continued volatility and fragile sentiment during Friday’s session.

Live Market Snapshot (Closing Basis)

Index	Level	Change
Sensex	83,675	🔻 -559 pts (-0.66%)
Nifty 50	25,807	🔻 -147 pts (-0.57%)
Nifty IT	10-month low	🔻 -5.5%
Total M-Cap Impact	₹472 lakh crore	🔻 ₹2.8 lakh crore wiped

Why Did Markets Crash So Sharply?

1️⃣ IT Sector Meltdown: AI Disruption Shockwave

The Nifty IT index plunged 5.5%, hitting 10-month lows, as fears of AI-led business model disruption triggered panic selling across frontline tech names.

Top IT Losers:

TCS 🔻 5.5%
Infosys 🔻 5.8%
HCL Tech 🔻 5.2%
Tech Mahindra 🔻 6.0%
Wipro 🔻 4.8%

The trigger: Global concerns that advanced AI platforms could structurally compress traditional IT outsourcing demand, denting long-term growth visibility.

2️⃣ US Macro Shock: Hot Jobs Data Kills Rate-Cut Hopes

Stronger-than-expected US jobs data sharply reduced expectations of early Federal Reserve rate cuts, leading to global tech sell-offs, directly impacting Indian IT stocks dependent on US revenue streams.

This macro shift flipped sentiment decisively to risk-off.

3️⃣ Massive Wealth Destruction: ₹2.8 Lakh Crore Vanished

The IT crash pulled down broader indices, leading to a single-day wipeout of ₹2.8 lakh crore in investor wealth, dragging total BSE market capitalization down to ₹472 lakh crore—a sharp sentiment blow.

Stock-Specific Action: Top Movers

🔻 Heavy Losers

TCS – ₹2,750 (🔻5.5%)
Infosys – ₹1,386 (🔻5.8%)
Tech Mahindra – ₹1,537 (🔻6.0%)

Relative Outperformers

Bajaj Finance – +3.1%
ICICI Bank – +1.7%
Trent – +1.6%

Trader’s Market Strategy: Key Levels That Matter Now

Index	Support	Resistance	Trade Bias
Nifty 50	25,650 → 25,500	25,950 → 26,100	Sell on Rise
Bank Nifty	48,850	49,600	Range-Bound Bearish
Nifty IT	10-month low zone	4% upside cap	Avoid Fresh Longs

Technical View:

A break below 25,800 confirms a short-term trend reversal.
Sustained trading below 25,650 may trigger accelerated stop-loss selling.
IT stocks remain high-risk trades amid the structural AI fear cycle.

What Traders Should Watch Next

US Inflation Data → Rate cut probability → Global tech sentiment
FII flows → Directional cue for Nifty
IT management commentary → AI impact clarity

Final Verdict

The market has entered a high-volatility danger zone. Unless Nifty decisively reclaims 26,000, sell-on-rise strategies dominate, with IT stocks staying under structural pressure.

Frequently Asked Questions

Why did Sensex crash 559 points today?

Sensex fell sharply due to heavy selling in IT stocks triggered by global AI disruption fears and stronger-than-expected US jobs data, which reduced hopes of early Fed rate cuts, leading to risk-off sentiment across global markets.

Why did Nifty fall below 25,800?

Nifty slipped below 25,800 support as IT stocks cracked up to 6%, triggering index-wide selling pressure. The breakdown indicates short-term trend weakness and rising volatility risk.

Why are IT stocks falling sharply?

IT stocks plunged after global concerns that advanced AI platforms could structurally reduce traditional IT outsourcing demand, leading to valuation de-rating and panic selling.

How much investor wealth was wiped out today?

Nearly ₹2.8 lakh crore in investor wealth was wiped out in a single session, as market capitalisation dropped sharply due to broad-based selling.

What are the key support levels for Nifty now?

Immediate Support: 25,650
Major Support: 25,500
A decisive break below 25,650 could accelerate downside momentum.

Should traders buy the dip in IT stocks now?

Short-term traders should avoid fresh longs in IT stocks, as structural AI disruption fears and global macro uncertainty keep risk elevated. Only positional investors may consider staggered accumulation at lower levels.

What should traders watch next?

US inflation data
FII fund flows
Global tech sector cues
Management commentary on AI impact

Is market volatility expected to remain high?

Yes. With critical technical supports breaking and global macro uncertainty rising, market volatility is likely to stay elevated in the near term.