Tue Feb 24 09:50:00 UTC 2026: # Indian Stock Market Plunges Amid AI Fears, Rising Oil Prices, and Trade Concerns

The Story:
On February 24, 2026, Indian equity benchmark indices Sensex and Nifty experienced a significant slump in early trading, dropping nearly 1%. The downturn was primarily triggered by a sharp selloff in IT stocks, fueled by increasing anxieties surrounding potential AI-led disruption. The market sentiment was further dampened by rising crude oil prices and renewed worries over global trade, particularly in light of U.S. President Donald Trump’s recent tariff remarks.

The Sensex tanked 813.13 points, or 0.97%, to 82,481.53, while the Nifty declined 230.15 points, or 0.89%, to 25,482.85. While most IT stocks faced heavy losses, some sectors like banking and metals showed gains, offering a partial counterbalance to the overall negative trend.

Key Points:

  • Sensex and Nifty both declined nearly 1% in early trade on February 24, 2026.
  • IT stocks faced a major selloff due to fears of AI disruption.
  • Rising crude oil prices (Brent Crude at $72.13 per barrel, up 1%) and Trump’s tariff remarks contributed to investor unease.
  • Eternal led the Sensex decliners, dropping 3.82%.
  • State Bank of India, Axis Bank, PowerGrid, Asian Paints, Kotak Mahindra Bank, and Tata Steel were among the gainers.
  • Foreign Institutional Investors (FIIs) bought equities worth ₹3,483.70 crore on February 23, 2026, while domestic institutional investors were net sellers of stocks worth ₹1,292.24 crore.
  • U.S. equities market ended nearly 2% lower on February 23, 2026.

Critical Analysis:
The historical context provided shows an IT sell-off happening at the same time as the market crash. This shows that the AI fears are directly correlated to the market crash.

Key Takeaways:

  • The Indian stock market is highly sensitive to global trade policies and geopolitical events.
  • Fears surrounding AI disruption are having a tangible impact on the IT sector and overall market confidence.
  • Rising crude oil prices continue to be a significant factor influencing investor sentiment.
  • The market is exhibiting volatility, reacting sharply to both domestic and international cues.
  • The trend of weakness in tech stocks is expected to continue.

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