The Indian stock market closed another turbulent session on Tuesday, February 24, 2026, hammered by global tariff tensions, a deepening rout in tech stocks, and a major fraud scandal at IDFC First Bank. The benchmark Nifty 50 dropped 0.55% to finish at 25,713, while the BSE Sensex shed 0.58% to close at 83,294.66. The day’s sell-off wiped out approximately Rs 4.6 lakh crore in investor wealth, dragging overall BSE market capitalization down to around Rs 464 lakh crore.
Tariff Drama and Global Uncertainty
The ongoing tariff saga between India and the U.S. dominated headlines, with fresh threats from President Trump shaking up global markets. Over the weekend, Trump imposed a temporary 15% global tariff, adding confusion and volatility to an already jittery environment. Indian goods are now set to see U.S. tariffs cut to 18%, bringing India’s effective tariff rate down to an estimated 11-13%. That’s lower than China’s (above 15%) and broadly in line with other Asian economies. Still, the EU’s decision to freeze its deal with the U.S. in response—and Trump’s warnings to countries hesitating on trade—signal that the tariff drama is far from over.
IT Woes and a Banking Shock
Tech stocks bore the brunt of the pain. The NIFTY IT index tumbled 1.4% on the day, now down a staggering 16.7% year-to-date. Global concerns over how AI tools might permanently alter the IT business led Jefferies to downgrade six major Indian IT firms, including heavyweights TCS and Infosys. Market analysts warn that the tech segment is likely to remain under pressure, especially as weakness in Indian IT ADRs continues to spook investors.
But the biggest shock came from the banking sector. Shares of IDFC First Bank crashed 16.1% after the lender disclosed a suspected employee fraud involving $65 million in accounts tied to government entities in Haryana. The scandal made IDFC First Bank the day’s worst performer in the Nifty 500.
Despite the turbulence, some bright spots remain. Foreign institutional investors (FIIs) are showing renewed interest in sectors like capital goods and financials, which could help cushion the blow in coming sessions. However, with macroeconomic uncertainty and sector-specific headwinds, investors are bracing for more volatility ahead.
