Why were IT stocks down today? Fears of AI-led disruption behind Sensex, Nifty drop

Stock markets: The 30-share BSE Sensex tanked 813.13 points, or 0.97 per cent, to 82,481.53 in early deals on Tuesday.

Updated on: Feb 24, 2026, 15:15:09 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

IT stocks were among the laggards in the Sensex and Nifty drop on Tuesday, a slump of nearly one per cent in early trade that was driven by fears of AI (artificial intelligence)-led disruptions.

The Bombay Stock Exchange building on Dalal Street in Mumbai. (Bloomberg/File)

The 30-share BSE Sensex tanked 813.13 points, or 0.97 per cent, to 82,481.53 in early deals, according to data cited in a PTI news agency report. The 50-share NSE Nifty declined 230.15 points, or 0.89 per cent to 25,482.85.

Eternal dropped the most from the Sensex pack, declining 3.82 per cent, followed by HCL Technologies, Infosys, Tech Mahindra, Tata Consultancy Services, Bharti Airtel, Bajaj Finance, Bharat Electronics Ltd, Trent, Adani Ports, ITC, and Titan.

TCS, Infosys, HCLTech and Wipro lost 2.5 per cent - 4 per cent, according to a Reuters report.

Why were IT stocks down?

The trigger for drop in Asian stock markets is a report released Sunday by Citrini Research, a New York-based financial services company, which outlined forward-looking scenarios highlighting areas of the global economy potentially vulnerable to AI disruption. Industries such as credit card services and food delivery platforms were identified as being especially exposed to new automation tools.

“Policy response has always lagged economic reality, but lack of a comprehensive plan is now threatening to accelerate a deflationary spiral,” the report says, according to Associated Press.

Further dampening sentiment was an announcement from Anthropic stating that its Claude chatbot can assist in modernizing COBOL - the legacy programming language widely used on IBM (International Business Machines Corp) computers. Following the news, IBM shares dropped more than 13 per cent in New York trading, reflecting investor concerns about competitive and technological shift.

IBM stocks' 13 per cent plunge on Monday was its biggest single-day percentage loss since October 2000. With the decline, IBM shares fell 27 per cent in February, on track for its biggest one-month slide since at least 1968, according to data compiled by Bloomberg.

Besides, rising crude oil prices and renewed concerns over global trade after US President Donald Trump's latest tariff remarks also weighed on investors' sentiment, traders said, as per PTI news agency.

On Monday, the 30-share BSE Sensex climbed 479.95 points to settle at 83,294.66, while the NSE Nifty advanced 141.75 points to close at 25,713.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Get the latest India News, breaking headlines and real-time updates from across the country. Stay informed about politics, government policies, crime, weather and major national developments.