Indian equity markets opened Thursday in full risk-off mode, with panic selling in IT stocks triggering a brutal ₹1.3 lakh crore wealth wipeout in a single session, dragging Sensex down over 450 points and forcing Nifty below the critical 25,850 mark. The sharp breakdown was driven by fresh AI disruption fears, fading US rate-cut hopes after strong jobs data, and earnings pressure, sparking one of the heaviest tech-led sell-offs in recent months.
Market Snapshot (Live Mid-Session Data)
| Index | Level | Change | % Move |
|---|---|---|---|
| Sensex | 84,220 | -450 pts | -0.53% |
| Nifty 50 | 25,836 | -118 pts | -0.45% |
| Nifty IT | — | -5% | Sharp Breakdown |
Sector Damage Concentration: IT, Media, Select Realty
Relative Strength: FMCG, Banks, Financials, Metals
What Triggered Today’s Sharp Market Sell-Off?
1️⃣ Massive IT Sector Capitulation (Biggest Drag)
A fresh wave of panic selling crushed Indian IT stocks, dragging the Nifty IT index down over 5% and erasing nearly ₹1.3 lakh crore in total market capitalisation in a single session.
IT Bloodbath—Worst Hit Stocks
| Stock | Intraday Fall |
|---|---|
| TCS | -4.3% |
| Infosys | -4.7% |
| Wipro | -4.5% |
| HCL Tech | -4.1% |
Key Triggers:
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Disruptive AI platform launch by Anthropic
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Rising fears of automation-led pricing pressure
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Slowing deal pipeline visibility
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US job data pushing rate cuts further away
2️⃣ US Jobs Data Shock → Rate-Cut Hopes Fade
The US added 1.3 lakh jobs, with unemployment slipping to 4.3%, forcing traders to push back expectations of early Fed rate cuts.
This triggered:
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Rise in US bond yields
-
Global risk-off positioning
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Heavy sell-off in growth & tech stocks
3️⃣ HUL Q3 Earnings Miss Adds FMCG Pressure
Hindustan Unilever (HUL) reported:
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Q3 Net Profit: ₹2,118 crore (-30% YoY)
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Revenue Growth: +6% YoY
This added further pressure on sentiment, despite FMCG showing relative stability.
Sectoral Heatmap—Where Is the Real Damage?
| Sector | Trend | Comment |
|---|---|---|
| IT | Sharp Sell-Off | AI + US rates panic |
| Media | Weak | Risk-off pressure |
| FMCG | Mixed | HUL drag |
| Banks & Financials | Resilient | Selective buying |
| Metals | Stable | China optimism |
Key Stock-Specific Market Movers
| Stock | Trigger | Move |
|---|---|---|
| LG Electronics India | Q3 profit -61% YoY | -8% |
| Divi’s Labs | Q3 miss | -4% |
| Lenskart Solutions | Profit surge 70x YoY | +12% |
| SBI | M-cap crosses ₹11 lakh cr | +1.5% |
| Shriram Finance | Multibagger rally | +2% |
Why This Matters for Traders (Market Impact Analysis)
| Factor | Market Impact |
|---|---|
| IT Breakdown | Index drag + FII selling |
| US Rate Delay | Tech & midcap pressure |
| HUL Weak Q3 | FMCG momentum slowdown |
| Bond Yield Rise | Equity risk premium spike |
Trading Insight:
Short-term sentiment remains fragile. Any Nifty bounce above 26,000 may face aggressive supply.
Technical Market Levels to Watch
| Index | Support Zone | Resistance Zone |
|---|---|---|
| Nifty 50 | 25,750 – 25,700 | 26,000 – 26,100 |
| Sensex | 84,000 – 83,800 | 84,800 – 85,000 |
| Nifty IT | 4-Month Low Zone | Heavy overhead supply |
Quantitative Forward Market Signals
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Expected IT Volatility: 18–25% surge over next 3 sessions
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Short-Term Nifty Range: 25,700–26,050
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FII Flow Bias: Negative → Neutral (if US bond yields cool)
Expert Market View
“Tech stocks could take longer to recover. Fund rotation from IT to earnings-driven sectors like autos, telecom, hotels and financials may continue.”
— V.K. Vijayakumar, Geojit Financial Services
Final Market Take
The ₹1.3 lakh crore IT wealth wipeout, combined with US rate uncertainty and Q3 earnings pressure, has pushed Indian markets into short-term risk-off mode.
Unless global bond yields cool sharply, volatility is likely to stay elevated, keeping Nifty under pressure below the 26,000 psychological mark.
FAQs
Q1. Why did Indian markets fall today?
Due to IT stock panic, US job data shock, fading Fed rate cut hopes, and weak HUL Q3 earnings.
Q2. Why did IT stocks crash sharply?
AI disruption fears, pricing pressure, a weak deal outlook, and US bond yield spike.
Q3. Is this correction healthy or dangerous?
Short-term dangerous for IT-heavy portfolios, but selective opportunities may emerge.
Q4. What should traders do now?
Avoid fresh IT longs. Focus on banks, select FMCG, autos, and financials.
