The Nifty 50 closed 288.35 points lower (–1.12%) at 25,424.65, while the Sensex fell 1,068.74 points (–1.28%) to settle at 82,225.92.
The fall came after US President Donald Trump revived tariff threats over the weekend, announcing 15% new temporary global tariffs and warning countries against backing out of negotiated trade deals. Even though the US Supreme Court had ruled his earlier tariffs unlawful, the fresh announcement unsettled global markets.
Broader markets held up relatively better.
Nifty MidCap ended 0.32% lower
Nifty SmallCap slipped 0.55%
While benchmarks cracked sharply, mid and small caps saw comparatively contained damage.
Impact on the stock market
Sector-wise performance
The biggest damage was visible in the technology sector.
The Nifty IT index plunged 4.74%, ending at 30,053.50, after hitting a two-year low intraday. This was the steepest sectoral decline of the day.
The Nifty Realty index followed, falling 2.54%, reflecting worries that weakness in IT could spill over into property demand and commercial leasing.
On the positive side, the Nifty Metal index outperformed, offering some cushion to the broader market.
| Sector/Index | Performance |
| IT & BPM sector | -4.74% |
| Healthcare sector | 0.22% |
| Oil & Gas sector | 0.50% |
| Real estate sector | -2.54% |
| PSU Bank in India | 0.29% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| NTPC | 382.75 | 1.94 |
| Coal India | 430.95 | 1.16 |
| JSW Steel | 1,254.50 | 1.13 |
| Hindalco | 922.85 | 0.73 |
| HUL | 2,358.60 | 0.56 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| LT Technology | 3,148.60 | –8.45 |
| AFFLE 3I | 1,398.50 | -7.36 |
| LTIMindtree | 4,501.00 | -6.84 |
| Tech Mahindra | 1,345.40 | -6.63 |
| KPIT Tech | 760.50 | -6.42 |
Market aftermath: Impact on stocks
Bharti Airtel: NBFC Expansion Triggers Investor Caution
Shares of Bharti Airtel dropped over 3%, trading near ₹1,933, making it one of the top Nifty losers.
The fall came after Airtel announced plans to invest up to ₹20,000 crore into its newly licensed NBFC arm, Airtel Money Limited. The company will own 70%, while Bharti Enterprises will hold 30%.
On paper, this looks like expansion. But markets are questioning execution risk.
The ₹20,000 crore capital infusion could potentially build an asset base of nearly ₹1 lakh crore, but investors are cautious about:
- Credit risk
- Regulatory compliance
- Capital allocation discipline
Despite today’s fall, Airtel stock is still up 21% in one year, outperforming the Nifty’s 13.5% rise.
This looks like short-term caution rather than long-term structural doubt.
Realty Stocks: IT Stress Spills Over
Real estate stocks came under pressure as investors worried about the knock-on effects of the IT sector slowdown.
The Nifty Realty index fell 1.42% intraday, with all 10 constituents trading in the red.
Major declines included:
- SignatureGlobal down 2.9%
- Prestige Estates down 2.7%
- Godrej Properties down 1.9%
- DLF down 1.1%
The index has:
- Fallen 3.6% in one week
- Declined 8.4% year-to-date
Why does IT matter for real estate?
Because:
- IT drives office leasing demand
- Tech salaries support urban housing demand
- Corporate expansion fuels commercial real estate
If IT slows structurally due to AI disruption, property demand could moderate.
Experts suggest the “best phase” of the real estate cycle may be behind us, though selective residential plays could still perform.
Midcap IT Stocks: Selling Gets Brutal
The real damage today was in midcap IT stocks.
While frontline IT stocks were down 4–7%, midcaps plunged even deeper — between 4% and 8%.
Key declines:
- Persistent Systems down 7.7%
- Coforge down 6.6%
- L&T Technology Services down 5.6%
- Tata Elxsi down 5.2%
- KPIT Technologies down 4.9%
This sharper fall in midcaps reflects higher valuation sensitivity.
The trigger? Fresh concerns that artificial intelligence tools could reduce demand for traditional IT services, especially legacy software modernisation — a major revenue driver.
Brokerages have turned cautious:
- Downgrades across the sector
- Target price cuts
- Concerns over pricing pressure
Investors are reassessing whether growth assumptions need recalibration.
This isn’t just panic — it’s valuation reset territory.
Crude Oil: Geopolitics Back In Focus
While equities struggled, crude oil moved higher.
At 9:57 am Tuesday:
- Brent crude was at $71.65, up 0.76%
- WTI crude was at $66.85, up 0.81%
- MCX crude traded near ₹6,097, up 0.86%
Oil prices rose after Trump warned Iran of “serious consequences” if it fails to reach a nuclear agreement.
Although diplomatic talks are ongoing and mediated by Oman, the rhetoric has added a risk premium to crude.
Meanwhile, tariff uncertainty continues to cloud global demand expectations. Trump also warned that countries attempting to “play games” on trade could face even higher tariffs.
For India, higher oil prices mean:
- Potential pressure on inflation
- Impact on fiscal math
- Currency sensitivity
So crude remains a key macro variable to watch.
Conclusion
Today’s market fall wasn’t random.
It was driven by:
- Renewed US tariff uncertainty
- AI-led disruption fears in IT
- Spillover worries into real estate
- Global geopolitical tensions
The Nifty at 25,424 and Sensex at 82,225 reflect a risk-off mood, especially in high-valuation tech stocks.
But broader markets did not collapse.
Metals held up. Midcaps did not crash. Select stocks continue to show resilience.
The bigger story now is whether IT valuations need structural repricing or if this is just an emotional reaction to AI headlines.
As always, volatility creates clarity.
For more stock market insights, check out the StockGro blog.
