Indian equity benchmarks faced heavy pressure, extending their losing streak on Tuesday. The 30-share BSE Sensex plunged 1,456.04 points, or 1.92 per cent, to settle at 74,559.24. Concurrently, the NSE Nifty50 index slumped 436.30 points, or 1.83 per cent, closing at 23,379.55.
Amidst this broad market decline, several metal stocks demonstrated remarkable resilience. Companies such as Vedanta Ltd, Hindustan Zinc Ltd, and Hindalco Industries Ltd saw their shares rise by up to 2.53 per cent during the trading session. This performance stood out even as the broader Nifty Metal sub-index ended 0.35 per cent lower, indicating selective strength within the sector.
IT Sector Sees Sharp Correction Amid AI Concerns
In contrast to the metals sector, information technology (IT) stocks witnessed the sharpest correction among sectoral indices, with the Nifty IT sub-index tumbling 3.73 per cent. Ravi Singh, Chief Research Officer at Mastertrust, attributed this sharp fall to recent developments in artificial intelligence.
"IT stocks fell sharply amid heavy pressure after OpenAI's latest enterprise push, as investors started questioning how AI could reshape the traditional IT services model over the next few years," Singh explained. He highlighted concerns that AI platforms are becoming increasingly capable of handling repetitive tasks, such as coding, testing, support, and workflow automation, which have historically been manpower-driven for Indian IT companies. "That naturally raises concerns around future hiring, billing growth, and pricing power, especially in low-complexity outsourcing work."
Singh added that while the market reaction might seem emotional in the short term, the shift represents an industry transition. Large IT firms are actively investing in AI, developing their own tools, and forging partnerships to remain competitive in the evolving technological landscape.
Nifty Outlook and Key Levels
Looking ahead, Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, provided a technical outlook for the Nifty50 index. "Going ahead, the 23,530–23,550 zone is expected to act as a crucial resistance for the index."
Shah further advised that as long as the Nifty50 sustains below the 23,550 mark, the prevailing bearish trend is likely to persist. This could potentially drag the index lower towards 23,200, with a possibility of further downside extending to the 23,050 level.