Sensex, Nifty slip in early trade amid global market sell-off

Indian equity markets opened under selling pressure on Tuesday, tracking sharp declines in US markets amid concerns over tariffs, geopolitical tensions, and AI-related disruptions impacting global technology stocks.

At the opening bell, the Nifty 50 slipped 71.20 points, or 0.28 per cent, to 25,641.80, while the BSE Sensex declined 242.12 points, or 0.29 per cent, to 83,052.54.

Market sentiment remained cautious after a sharp sell-off in US markets overnight. The Dow Jones Industrial Average fell 821 points, or 1.66 per cent, to close at 48,804. The S&P 500 declined 1.04 per cent to settle at 6,837, while the Nasdaq Composite fell 1.21 per cent to close at 22,608.

Ajay Bagga, Banking and Market Expert, said, that global markets witnessed a tough session, with AI-related concerns, geopolitical tensions involving Iran, and uncertainty around tariffs weighing on investor sentiment. He said Indian markets have seen foreign portfolio investor buying in February, which has provided some support, but warned of heightened volatility due to the February derivatives expiry.

Bagga added that global event risks continue to dominate market narratives, noting that Artificial Intelligence remains a disruptive force. He pointed out that fears around AI adoption, coupled with tariff-related uncertainty, have created multiple negative overhangs for global markets.

Technology stocks faced sharp selling pressure after shares of International Business Machines declined over 13 per cent. The stock fell after AI startup Anthropic said its Claude Code tool could be used to modernise a programming language run on IBM systems. IBM shares closed lower by USD 33.81 at USD 223.35 on the New York Stock Exchange.

Broader market indices on the NSE also traded lower in early deals. The Nifty 100 declined 0.47 per cent, while the Nifty Midcap 100 fell 0.38 per cent and the Nifty Smallcap 100 slipped 0.43 per cent.

Sectoral indices largely remained in the red. Nifty IT declined sharply by 2.27 per cent, while Nifty Auto fell 0.65 per cent. Nifty FMCG declined 0.26 per cent, Nifty Media fell 0.63 per cent, and Nifty PSU Bank slipped 0.22 per cent. The Nifty Metal index, however, showed some resilience, gaining 0.26 per cent.

On the institutional front, foreign institutional investors made net investments of Rs 3,483 crore on Monday, while domestic institutional investors sold equities worth Rs 1,292 crore.

Asian markets showed mixed trends. Japan’s Nikkei 225 rose 0.96 per cent, Taiwan’s weighted index gained 2.41 per cent, and South Korea’s KOSPI advanced 1.44 per cent. In contrast, Singapore’s Straits Times index fell 0.67 per cent, while Hong Kong’s Hang Seng index declined over 2 per cent.

Overall, weak global cues, technology sector concerns, and geopolitical uncertainties continued to keep investor sentiment cautious in early trade