BSE Sensex drops 310 points as IT stocks tumble amid global concerns

Indian shares opened lower on Tuesday as rising global bond yields fueled concerns over renewed energy inflation, which could lead to sustained high interest rates. The benchmark BSE Sensex fell by 310 points, or 0.4 percent, to reach 77,417 in early trading. Simultaneously, the NSE Nifty index dropped 65 points, or 0.3 percent, settling at 24,221.

The downturn in the stock market coincides with a rise in Brent crude oil prices, which surged above $91 a barrel. This increase follows a peak not seen since late July, amid stalled peace talks in the Middle East. Investors are wary that these geopolitical tensions could further impact energy prices and consequently influence inflation and monetary policy.

In the equity market, information technology stocks were particularly hard hit. Major players such as HCL Technologies, Tech Mahindra, TCS, and Infosys experienced declines between 1 to 2 percent. Other significant companies also saw drops, with Indigo, Hindustan Unilever, and Asian Paints each falling over 1 percent. Bharti Airtel lost 1.6 percent after announcing changes in its leadership, while One97 Communications dropped 1.3 percent following a significant block deal involving nearly 1.92 crore shares.

Despite the overall market decline, some companies experienced gains. Netweb Technologies rallied 2.6 percent after launching a qualified institutional placement (QIP) issue aimed at raising up to Rs. 1,200 crore. Lloyds Engineering Works increased by 1.4 percent after acquiring a 51.13 percent stake in Steel Infra Solutions Company. Similarly, Samvardhana Motherson International rose by 1.4 percent on news that it would take a controlling interest in Shenzhen Autocruis Technology in China. The market's direction in the coming days will depend heavily on how geopolitical events evolve and their implications for energy prices and inflation.