By Dalal Street Investment Journal (DSIJ)
Indian markets fell sharply on Feb 24 as the Nifty IT index slid over 4% after Anthropic launched its Claude Cowork Agent and a viral Citrini Research report warned AI could upend India’s labour arbitrage model, stoking fears of contract cancellations.
On Tuesday, February 24, India’s key equity benchmarks, the Nifty 50 and the Sensex, fell over 1%, dragged by information technology (IT) stocks on AI-disruption fears, while renewed uncertainty around US tariff policy hurts risk sentiment.
At the closing bell, the Nifty 50 ends down by 288.35 points, or 1.12%, to 25,424.65. The Sensex declined by 1,068.73 points, or 1.28%, to 82,225.92. Following a negative close, the benchmark indices snapped their 2-day winning streak. The Bank Nifty ended at 61,047, down by 0.35%.
Top Factors That Led to a Sharp Decline in Indian Markets on February 24
Indian stock markets fell sharply on February 24, 2026, led by a steep decline in the Nifty IT Index after Anthropic launched its Claude Cowork Agent and a viral report by Citrini Research warned that AI could disrupt India’s labour-arbitrage model, triggering fears of contract cancellations.
Rising US-Iran tensions pushed crude higher; monthly F&O expiry amplified volatility; and nervousness ahead of February 27 GDP data kept investors cautious, dragging the broader market lower.
On the sectoral front, 5 out of 11 key sectoral indices ended in positive territory. Meanwhile, broader indices such as the Nifty Midcap and Nifty Smallcap 100 indices ended in negative terrain with a decline of 0.32% and 0.55%, respectively.
On Tuesday, the Nifty Metal index emerged as the top gainer among the sectoral indices, ending 0.93% higher. The index is trading just 3.5% below its record high.
On the other hand, the Nifty IT index plunged by 4.74% as the pain caused by artificial intelligence-triggered disruption continued to drag the index. The index is down by over 20% in the last month.
One of the key reasons for the sharp decline in the Nifty IT index is a widely shared Citrini Research note, titled “The 2028 Global Intelligence Crisis", which has rattled global tech counters and added pressure on Indian IT stocks.
Rather than flagging a routine slowdown, the report lays out a structural argument: that the core of Indian outsourcing, the labour arbitrage model, could steadily erode as AI changes how work is delivered.
Among individual stocks,
All major IT stocks declined sharply, with heavyweights like Tata Consultancy Services, Infosys, Wipro, HCL Technologies, Tech Mahindra, LTIMindtree, Persistent Systems, Coforge, and Mphasis witnessing broad-based selling pressure amid AI disruption fears and global tech weakness.
Textile Stocks Like Gokaldas Exports, Arvind Witness Sell-off as RoDTEP Incentive Cut by 50%
The key drivers of the index gains were:
NTPC: +7.56 points
JSW Steel: +2.87 points
Hindustan Unilever: +2.56 points
On the other hand, these stocks weighed on the index:
HDFC Bank: -43.93 points
Larsen & Toubro: -40.88 points
Infosys: -40.01 points
As of February 24, 2026, the market breadth was slightly tilted towards declining stocks. Out of 3,273 stocks traded on the NSE, 1,070 advanced, 2,104 declined, and 99 remained unchanged.
A total of 55 stocks touched their 52-week highs, while 303 hit their 52-week lows. Additionally, 45 stocks were locked in their upper circuits, whereas 103 stocks were locked in lower circuits.
Disclaimer: The article is for informational purposes only and not investment advice.
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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