The Indian stock market experienced a significant downturn on Tuesday, February 24, 2026, as a broad market sell-off pushed over 260 stocks to their 52-week lows on the National Stock Exchange (NSE).Key players like Tata Consultancy Services (TCS) and Infosys from the technology sector, along with wind energy firm Suzlon Energy and electric vehicle manufacturer Ola Electric Mobility, were among those heavily impacted.The benchmark Nifty50 index declined by 288.35 points, or 1.12 percent, to settle at 25,424.65 points.Meanwhile, the S&P BSE Sensex, India's other main index, dropped 1,068.73 points, or 1.28 percent, closing at 82,225.92 points.This sharp decline erased more than ₹4 lakh crore (approximately $48 billion) in investor wealth by the end of the trading day. The market's fall snapped a two-day streak of gains, reflecting negative investor sentiment from both domestic and international factors.[indianewsnetwork+8]
Technology Stocks Lead Major Sell-off
The Information Technology (IT) sector suffered a severe rout, acting as the primary catalyst for the broader market's decline. The Nifty IT index plunged 4.74 percent, reaching a 30-month low. This marked the fifth consecutive trading session of losses for the sector, which has seen a substantial ₹5.05 lakh crore (approximately $60.5 billion) wiped off its market capitalization in February alone. Allconstituents of the Nifty IT index traded lower during the session.[icicidirect+3]
Heavyweight IT companies bore the brunt of the selling pressure. Tata Consultancy Services (TCS) shares fell 3.5 percent, while Infosys stock declined 3.7 percent on Tuesday. These two companies were among the biggest contributors to the Sensex's overall fall. Other prominent IT firms like Wipro, HCL Technologies, Tech Mahindra, Persistent Systems, and Coforge also faced significant drops, with some losing more than 4 percent of their value. TheNifty IT index's month-to-date decline widened to 20 percent.[5paisa+5]
AI Disruption Fears Drive IT Sector Weakness
The intensified selling in IT stocks was largely triggered by growing anxieties about artificial intelligence (AI) and its potential to disrupt traditional business models. Specifically, the recent announcement by US-based AI firm Anthropic regarding its new tool, "Claude Code," fueled these concerns. This tool is designed to assist in modernizing legacy systems built on older programming languages like COBOL.[indiatoday+5]
Market analysts are now debating the long-term implications of AI for the Indian IT services industry, which has historically relied on a labor-arbitrage model. Global research and broking house Jefferies downgraded six Indian IT companies, including TCS and Infosys, to 'Hold' or 'Underperform' ratings. Thefirm cited concerns about structural changes linked to AI tools and cut earnings estimates for IT firms by 1-4 percent. Similarly, CLSA reduced price targets for eight major IT stocks, including Coforge, HCL Technologies, and Wipro.[indianewsnetwork+8]
Balaji Rao Mudili, a Research Analyst at Bonanza, suggested that markets often overreact to major technological shifts. He compared the current AI fears to past concerns about blockchain impacting financial stocks, noting that those industries ultimately adapted. However, Siddharth Maurya, Founder and Managing Director at Vibhavangal Anukulakara, views the current IT sector sell-off as a sign of a structural shift rather than a normal correction. He stated that "high-quality IT stocks that can show a clear path of AI integration and an evolving revenue stream could be leaders in the medium term."[5paisa+2]
Suzlon Energy and Ola Electric Hit New Lows
Outside the IT sphere, other prominent companies also faced significant downward pressure. Suzlon Energy Limited, a key player in the renewable energy sector, continued its downtrend, hitting a new 52-week low of ₹43.52 per share on Tuesday. The stock had previously touched ₹43.85 on Monday. Suzlon's shares have now tumbled over 40 percent from their 52-week high of ₹74.30, recorded in May 2025. The stockhas lost 18 percent of its value in 2026 alone and nearly 25 percent in the last six months.[businesstoday+3]
This decline for Suzlon comes despite the company reporting strong financial performance, including a 14.8 percent rise in net profit year-on-year to ₹445.2 crore for the December 2025 quarter, with revenue increasing by 42.4 percent. Analysts attribute the stock's underperformance to valuation concerns and broader market sentiment, despite its solid operational and growth indicators. On Tuesday,Suzlon also announced a leadership change, elevating JP Chalasani and appointing Ajay Kapur as the new Group Chief Executive Officer.[businesstoday+3]
Ola Electric Mobility Limited, a prominent electric two-wheeler manufacturer that debuted on the exchanges in August 2024, also saw its shares hit a new all-time low. The stock touched ₹25.70 on Monday, February 23, 2026, marking a 3.3 percent decline for the day. This represents a staggering 64 percent drop from its 52-week high of ₹71.24, which it reached in September 2025. Emkay Global Financial Services downgraded Ola Electric to a 'Sell' rating, slashing its target price significantly. The downgrade followed the company's third-quarter results for fiscal year 2026 (Q3FY26), where it reported a net loss of ₹487 crore and a sharp 55 percent year-on-year drop in revenue to ₹470 crore. Emkay Global cited concerns over the company's survival amidst sharp operational deterioration.[businesstoday+8]
Broader Market Pressures and Investor Caution
The widespread market weakness was not confined to specific sectors but was exacerbated by a confluence of global and domestic macroeconomic pressures. Renewed global trade anxieties played a significant role, following threats of universal tariffs by US President Donald Trump. Such tariff discussions create uncertainty for businesses worldwide and can lead companies to delay spending, making global investors more cautious.[indianewsnetwork+3]
Adding to the unease were escalating geopolitical tensions between the United States and Iran, which caused Brent crude oil prices to surge. Crude oil prices crossed $72 per barrel, nearing a six-month high. Higher oil prices are generally detrimental for India, as the nation imports most of its crude oil, potentially increasing inflation, widening the trade deficit, and putting pressure on the Indian rupee. The strengthening US dollar index also contributed to market jitters.[indiatoday+5]
Volatility in the National Stock Exchange was further amplified by the expiry of monthly Futures & Options (F&O) contracts. Broader market indices also reported declines, with the Nifty Midcap100 and Nifty Smallcap100 showing dips of 1.1 percent. Investors engaged in profit booking amidst an overall weak sentiment across the market. The India VIX, a measure of market volatility, rose by 4.3 percent, reaching a value of 14.79.[angelone+4]
The current marketscenario indicates selective weakness and cautious sentiment rather than a market-wide crisis. While headline indices may appear calm, a closer look reveals underlying stress in various segments. Every market correction brings both fear and opportunity. Investors are advised to assess whether the drops are temporary, part of a sector rotation, or reflect fundamental changes in company performance. The market remains under pressure, and volatility is expected to continue as investors await further economic data and clarity on global developments.[indianewsnetwork]
