Stock Market Crash LIVE: Sensex Plunges ~850 Points, Nifty Below 25,550; IT Stocks Weak, VIX Surges

New Delhi: Indian stock markets witnessed a sharp downturn on Friday, with benchmark indices tumbling as widespread selling gripped Dalal Street amid weak investor sentiment. The BSE Sensex dropped approximately 850 points, while the NSE Nifty50 slipped below the 25,550 level, reflecting heightened risk aversion and volatility in the market.

Key Market Movements

• Sensex: Saw a steep decline with most of the 30 constituent stocks trading in the red. Heavyweights across sectors including IT, consumer goods, and manufacturing dragged the index lower.

• Nifty50: Slipped beneath the 25,550 mark, pressured by broad-based selling. Realty and mid/small-cap stocks also underperformed.

• Volatility (VIX): The India VIX, a key gauge of market anxiety, jumped sharply — up around 10% — indicating rising nervousness among traders and investors about near-term market movements.

Sectoral Pressure and Broad Market Weakness

The downturn was led by heavy selling in the IT sector, with major software and technology-related stocks bearing the brunt of the decline. Investors have grown cautious amid concerns around global technology sector headwinds and potential disruptions, particularly linked to rapid developments in artificial intelligence (AI) and its long-term impact on outsourcing models — a core driver for Indian IT companies.

In addition to IT stocks, the realty sector saw notable weakness, with several major developers’ shares falling by more than 2–4%. Broader indices, including mid-cap and small-cap segments, also lagged as risk-off sentiment spread across the market.

What’s Driving the Selloff?

Market analysts point to several factors contributing to the intense pressure:

• Global cues: Weak global equity markets and negative overseas signals weighed on risk assets.

• Sector-specific fears: Continued weakness in IT stocks on fears of future revenue disruption from emerging technologies like AI.

• Technical selling and volatility: The rapid rise in VIX suggests traders are seeking protection, amplifying downward moves.

Investor Impact

The sharp fall wiped out significant market capitalisation, with estimates suggesting hundreds of thousands of crores of investor wealth was erased over Friday’s session and the preceding sessions. Retail and institutional investors alike reacted nervously, with many booking profits or reducing exposure amid uncertainty.

Outlook

With volatility elevated and key support levels under pressure, market participants are likely to watch global developments closely, including overseas economic data, Fed rate expectations, and corporate earnings trends. Cautious trading is expected to continue in the near term unless positive catalysts emerge.