Why is stock market down today? Nifty50 goes below 25,450; BSE Sensex drops over 900 points - top reasons for crash
Times of India
by TOI BUSINESS DESKFebruary 24, 2026
AI-Generated Deep Dive Summary
The Indian stock market experienced a sharp decline on Tuesday as the Nifty50 dropped below 25,450 and the BSE Sensex fell over 900 points. This downturn was driven by several key factors, including fresh tariff threats from U.S. President Donald Trump, a rout in IT stocks, and weak global market cues. The decline eroded investor wealth by approximately Rs 2.94 lakh crore, reflecting broader concerns about economic stability and trade tensions.
One major contributor to the crash was the weakness in the IT sector, with shares of companies like Infosys, HCL Technologies, and Tata Consultancy Services (TCS) under significant selling pressure. This rout was triggered by news that Anthropic’s Claude Code tool could potentially disrupt legacy COBOL-based systems, leading to a selloff not only in Indian markets but also in the U.S., where IBM shares fell sharply. The implications of AI-driven cost efficiencies in COBOL-dependent industries, such as banking and retail, have created uncertainty among investors.
Another critical factor was Trump’s recent comments on tariffs following the U.S. Supreme Court ruling that invalidated certain trade powers. His threat to impose a 15% universal tariff under Section 122 of the Trade Act of 1974 has heightened global investor anxiety, particularly in Asia, where markets are already grappling with geopolitical risks and weak sentiment.
The broader impact of these developments highlights why this matters to global investors. The interconnectedness of financial markets means that U.S. trade policies and tech sector volatility can have ripple effects worldwide. For India, while foreign institutional investors (FIIs) have shown renewed interest due to improving corporate earnings, the IT sector remains vulnerable to external shocks. This dynamic underscores the importance of monitoring both domestic economic resilience and global trade tensions in understanding market movements.
In summary, the Indian stock market’s downturn reflects a complex interplay of factors, including U.S. tariff threats, IT sector pressures, and global market sentiment. These issues not only affect investor wealth but also highlight the broader
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Originally published on Times of India on 2/24/2026