Indian stock markets opened sharply lower as Sensex plunged over 700 points and Nifty slipped below 25,600, dragged by persistent selling in IT stocks amid rising concerns over artificial intelligence disruption and weak global tech cues.
Markets Under Pressure Despite Institutional Support
Mumbai: The week's trading began on a negative note for the Indian stock market. The Sensex fell by over 700 points at the opening bell, while the Nifty slipped below 25,600. Investor caution and weak global cues were clearly evident in early trade.
The biggest reason for the market decline was the ongoing pressure in the IT sector. Uncertainties related to artificial intelligence and growing concerns about the future of tech companies led to a sustained selloff in IT stocks. This directly impacted major indices and weakened the market sentiment.
Stock Market Close: Sensex drops 559 points, Nifty falls below 25,850 as IT shares drag
Derivative data also indicates caution in the market. Call open interest is recorded at 26,000 and put open interest is recorded at 25,500, while the PCR remains at 0.61. This indicates that traders are currently anticipating range-bound volatility and the possibility of downside pressure.
Global cues were also not in the Indian market's favor. US tech stocks saw a sharp decline, which also impacted Asian markets. Markets in Japan and Australia traded weak, while Korea's market saw a slight gain. These mixed signals impacted investor sentiment.
Sensex falls over 200 points in pre-open; Nifty shows little change
However, amid the decline, participation from foreign and domestic institutional investors has provided some stability to the broader market. Analysts believe that market volatility may persist until there is a clear improvement in the global tech sector. Investors are advised to adopt a cautious strategy for now.
