Markets erase two-day gains as Nifty IT falls 5%; Sensex drops over 1,000 points

Closing Bell: Indian equity benchmarks gave up their two-day rebound on Tuesday, weighed down by sustained selling in information technology stocks. The Sensex fell 1,069 points to close at 82,226, while the Nifty declined 288 points to settle at 25,425, slipping below the 25,450 mark.The Nifty IT index dropped nearly 5% in the session, extending its losing streak to five straight days. Over the past month, the index has tumbled 21%, reflecting persistent pressure in frontline technology counters. Coforge has slumped nearly 26% during this period, underscoring the scale of the correction.

Among the top Nifty losers were Tech Mahindra, HCLTech, Eternal and Infosys. The weakness was not confined to large caps.
In the broader market, LTIMindtree, KPIT Technologies, Persistent Systems, Coforge and Tata Technologies featured among the top midcap laggards. Eternal extended its slide, falling nearly 11% over the last five sessions.Broader weakness, selective bright spots

Banking stocks also edged lower, with the Nifty Bank index slipping 217 points to 61,047. The Nifty Midcap index declined 189 points to 59,066, signalling broader risk aversion. Market breadth remained firmly negative, with the NSE advance-decline ratio at 2:5.Also Read: Who is Alap Shah? The co-author of the viral AI crisis report roiling global markets

Textile stocks came under pressure after the government cut the RoDTEP incentive by 50%, dragging shares of Gokaldas Exports down over 5%.

Amid the weakness, a few counters bucked the trend. One MobiKwik gained more than 2% after receiving BSE approval to commence its stock broking business. Mangalore Refinery and Petrochemicals rose over 2% after announcing a board meeting on March 3, 2026, to consider an interim dividend for FY26.

For now, the sharp correction in technology stocks remains the dominant theme, leaving benchmarks on the back foot and investors wary of further volatility.

Also Read: IT stocks may have priced in too much AI risk: Kotak Institutional Equities