The BSE Sensex crashed nearly 900 points on Tuesday, June 23, 2026, settling just above 76,200, as a confluence of domestic and global factors triggered a broad-based selloff that erased Rs 4.61 lakh crore in investor wealth. The Nifty50 ended below 23,850, according to Business Today.
Renewed Selloff in IT Stocks
Information technology stocks, which had staged a temporary recovery on Monday, came under renewed pressure on Tuesday. Shares of TCS, Infosys, and Wipro each fell over 3%, as concerns intensified over AI-driven disruption and a slowdown in technology spending. The Nifty IT index ended the session more than 2% lower, according to the report.
The weakness followed Accenture's decision to lower the upper end of its annual revenue growth forecast, reviving worries about subdued discretionary spending by global corporations.
Sharp Correction in South Korea's Kospi
South Korea's benchmark Kospi index plunged as much as 10%, with major semiconductor stocks leading the decline. SK Hynix tumbled more than 12% and Samsung Electronics fell nearly 13%. The selloff was severe enough to trigger market-wide circuit breakers, prompting the Korea Exchange to suspend trading for 20 minutes. According to Business Today, investors rushed to lock in gains after the index had recently touched record levels.
Concerns Over US Fed Rate Hikes
Rising crude oil prices linked to tensions in the Middle East have reignited inflation worries, leading markets to believe that US interest rates could stay higher for longer. Bank of America revised its outlook for 2026 and now expects the US Federal Reserve to raise interest rates three times this year. Just last week, the brokerage had projected that rates would remain unchanged, the report noted.
Higher US rates have implications for emerging markets such as India, as rising Treasury yields can attract foreign capital toward US assets, potentially leading to outflows from Indian equities.
Weakness in the Rupee
The Indian rupee finished marginally lower on Tuesday, closing at 94.7350 per US dollar compared with 94.6775, a decline of 0.1%. The weakness was driven by changing expectations about US monetary policy, which pushed the dollar to a one-year high against a basket of major currencies.
Profit Booking After Recent Gains
The Nifty had closed in positive territory in six of the previous eight trading sessions, supported by easing geopolitical concerns following progress towards a US-Iran peace agreement and the subsequent decline in crude oil prices. Despite the recent rally, market analysts caution that restoring normal shipping activity through the Strait of Hormuz is expected to be a gradual and complicated process, according to the report.
Key Reasons for the Fall
| Factor | Details |
|---|---|
| IT stocks selloff | TCS, Infosys, Wipro fell >3%; Nifty IT down >2% |
| Kospi crash | Down 10%; SK Hynix -12%, Samsung -13% |
| US Fed rate hike fears | Bank of America now expects three rate hikes in 2026 |
| Rupee depreciation | Closed at 94.7350/USD, down 0.1% |
| Profit booking | Nifty had risen in 6 of previous 8 sessions |
| US-Iran uncertainty | Ongoing peace talks overhang |
The combined market capitalisation of BSE-listed companies dropped to about Rs 475 lakh crore, reflecting a single-day loss of Rs 4.61 lakh crore. The BSE Sensex ended around 900 points down, while the Nifty50 dropped below 23,850.
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