Indian equity benchmarks Nifty 50 and BSE Sensex ended sharply lower on Tuesday amid weak global cues, a selloff in IT stocks, fresh tariff threats from US President Donald Trump, and geopolitical concerns.

Nifty 50 closed at 25,424.65, down 288 points (1.12%)
BSE Sensex ended at 82,225.92, down 1,069 points (1.28%)
Investor wealth eroded by approximately ₹4.6 lakh crore

Top Reasons for the Market Fall

IT Stocks Take a Fresh Hit

Technology stocks led the decline after AI firm Anthropic announced that its Claude Code tool could help modernise legacy systems built on COBOL.

This raised concerns over cost disruption in traditional IT services.

Major losers included:

Tata Consultancy Services (TCS)
Infosys
HCL Technologies
Wipro
Tech Mahindra

The Nifty IT index fell over 2%.

Overnight in the US, IBM plunged 13%, adding to global tech worries.

Fresh Tariff Warning from Trump

Market anxiety increased after Trump signalled tougher trade measures. Following a ruling by the Supreme Court of the United States, which invalidated certain tariffs, Trump said he may impose a 15% universal tariff under Section 122 of the Trade Act of 1974.

His comments heightened fears of renewed global trade tensions.

US Tech Rout Spills Over to Asia

Wall Street weakness dampened sentiment globally:

S&P 500 fell 1.0%
Nasdaq Composite declined 1.1%
MSCI Asia-Pacific ex Japan Index slipped 0.2%

Concerns that AI-driven disruption could impact tech profitability also pressured markets.

Rupee Weakens

The Indian rupee depreciated to 90.95 against the US dollar. A weaker currency:

Triggers FII outflows
Raises import costs (especially crude oil)
Pressures corporate margins
Fuels inflation concerns

Though foreign institutional investors (FIIs) have recently turned buyers in select sectors like capital goods and financials, IT stocks remain under pressure.

Geopolitical Concerns Over Iran

Geopolitical risks added to the nervous mood. Trump indicated he was considering possible military action against Iran if diplomatic talks fail.

Iran’s Foreign Ministry warned that any US strike would be treated as an act of aggression, escalating global uncertainty.

Key Entities

Nifty 50 – Indian Benchmark Index
BSE Sensex – Indian Benchmark Index
Donald Trump – Former US President
Anthropic – US AI Company
TCS, Infosys, HCL Technologies, Wipro, Tech Mahindra – Indian IT Firms
IBM – US Technology Company
Supreme Court of the United States – US Apex Court
S&P 500 & Nasdaq Composite – US Stock Indices
MSCI Asia-Pacific ex Japan Index – Regional Equity Index
Iran – Middle Eastern Nation

Final Verdict

Today’s market crash was driven by a combination of global trade uncertainty, AI-led disruption fears in the IT sector, US market weakness, currency depreciation, and geopolitical tensions.

While strong domestic macros and renewed FII interest offer medium-term support, volatility may persist in the near term — especially in IT stocks and globally sensitive sectors.