The Indian stock market witnessed a significant downturn today, as benchmark indices faced intense selling pressure amid a mix of global uncertainties and domestic concerns.
The 30-share BSE Sensex pack tumbled over 500 points to hit a day's low of 83,674.92, while the NSE Nifty50 index slipped to 25,807.20.
Market observers comment that the fall follows a recent spike in the market following a positive development in the long-pending India-US trade deal, along with other concerns.
Apart from these reasons, global factors too have weighed in on the sentiment among the traders. Among the major losers, tech stocks saw a significant slip in the trades today.
Infosys, Tech Mahindra, Persistent Systems Ltd, LTIMindtree Ltd aand Tata Consultancy Services were among the IT stocks which slipped over 4 per cent in today's trades.
The heavy selling in IT sales erupted as concerns over AI-led disruptions and waning hopes of a Fed rate cut after firm US economic data weighed on investor sentiment.
On the other hand, Bajaj Finance, ICICI Bank, Trent, Bharat Electronics Ltd, State Bank of India, Asian Paints, Bajaj Finserv, Titan, Larsen & Toubro, Bharti Airtel and Tata Steel were among the gainers.
"A nosedive correction in the IT index triggered by mounting concerns over AI-led disruptions, along with low expectations of a US Fed rate cut due to strong US job data and unemployment rates, dampened investor sentiment," said Vinod Nair, Head of Research, Geojit Investments Limited.
Analysts also observed that AI is reshaping markets by reducing the margins in service-intensive sectors and increasing concentration-led volatility.
"A weak sentiment in the IT sector, along with lingering geopolitical tensions between the US and Iran, may influence investors to take a cautious approach in the near term," mentioned Nair.
Foreign institutional investors bought equities worth Rs 943.81 crore on Wednesday, while domestic institutional investors were the net sellers of stocks worth Rs 125.36 crore, according to exchange data.