Nifty Slides Below 25,550 as IT Stocks Face AI-Driven Sell-off

The Nifty 50 index was down by 246.30 points to 25,560.90 while the Sensex was down by 771.30 points to 82,903.62.

The Indian equity markets faced a significant downturn in morning trade, with the Nifty slipping below 25,550 as a widespread risk-off sentiment took hold. The decline was spearheaded by a massive 4.75% crash in the IT sector marking an 11% drop over three days triggered by fears that Anthropic’s new AI legal tool could disrupt traditional outsourcing models, causing heavyweights like Infosys and TCS to tumble. Beyond the IT rout, broader market sentiment remained dismal with a weak advance-decline ratio, further weighed down by disappointing quarterly results from major players like Hindalco, ONGC, and Coal India, all of which saw share prices retreat following their earnings reports.