Sensex, Nifty Extend Losses on February 24 Amid FII Selling Pressure

Indian equities saw a sharp slide on February 24, with heavy pressure on IT and auto shares dragging the Nifty 50 and BSE Sensex lower. The fall wiped out about Rs 4.96 lakh crore in investor wealth and pulled the combined market value of BSE-listed companies down to nearly Rs 464 lakh crore.

The Sensex dropped more than 1,000 points at the day’s low, touching 82,277, while the Nifty 50 slipped over 288 points and briefly moved below 25,450. Weak cues from overseas markets, worries over tariffs from the United States and rising geopolitical risk added to the selling mood across sectors.

Why is stock market falling today: global tariff worries and policy risk

Fresh uncertainty over United States trade policy weighed heavily on sentiment. The Supreme Court of the United States recently struck down tariffs imposed by Donald Trump, but that ruling has led to concerns that the administration may answer with more aggressive measures, including new duties under different legal provisions.

According to a Bloomberg report, the Trump administration is studying the use of Section 232 of the Trade Expansion Act of 1962 to restore global tariffs that the court invalidated. Trump has also warned that countries siding with the Supreme Court decision could face even higher tariffs on exports to the United States, adding to market unease.

Why is stock market falling today: geopolitical tensions and global cues

Developments in West Asia further dampened risk appetite. The situation in Iran remains tense, with widespread protests and reports of a government crackdown raising geopolitical risk. The United States has warned of possible military action, and investors are tracking the next round of nuclear talks between Washington and Tehran, scheduled for February 26.

Broader global markets did little to calm nerves. Most Asian indices traded flat to weaker, while Wall Street closed in the red after Trump told countries not to walk away from recently negotiated trade agreements following the Supreme Court verdict on emergency tariffs. Trump also hinted at much higher duties under other trade laws.

Why is stock market falling today: IT stocks, rupee and sector moves

Domestic technology shares bore the brunt of the selloff. IT counters fell sharply as global discussion about AI-led disruption resurfaced. Sentiment turned weaker after Anthropic said its Claude Code tools could lower the cost and complexity of modernising legacy software systems, reviving concerns over pressure on traditional IT service models.

The Nifty IT index was down 2.84 per cent around 9:30 am, making it the worst performing sectoral index on the day. Auto stocks also faced notable profit booking, adding to the drag on the headline indices. Together, these sectors amplified the fall that started from global risk-off cues and policy worries.

The rupee also moved lower in early trade, adding another headwind. The currency opened at 90.91 against the US dollar at the interbank foreign exchange market and then weakened to 90.96, down 7 paise from the previous close. Rising global crude oil prices and a stronger dollar weighed on the rupee, although foreign institutional investor inflows helped contain a deeper slide.

Traders also tracked political signals from Washington, with markets waiting for Trump’s first official State of the Union address of the second term on February 24. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that global investors were watching the speech and trade messaging closely, especially after reports that the European Union has paused trade talks with the United States.

Overall, the fall in the Indian share market on February 24 is linked to a mix of factors, including tariff uncertainty from the United States, tensions involving Iran, pressure on IT and auto stocks, a weaker rupee and dull global cues. Unless some of these triggers ease, volatility in the Sensex and Nifty may stay elevated in the near term.