New Delhi, April 1 -- The Nifty Realty index is the worst performer among NSE sectoral indices so far in 2026, down 24%, as fears of slowing housing demand trigger a sell-off in realty stocks.

A key driver is the Indian technology sector, which has historically powered housing sales and office space absorption. That engine now looks uncertain. Artificial intelligence-led disruption to IT business models and job creation is raising concerns that weaker hiring could spill over into both commercial and residential demand, especially in IT hubs such as Bengaluru, Hyderabad and Pune.

Macro risks are compounding the pressure. The second-order effects of the West Asia war could push inflation higher, keeping prospective homebuyers on the sidel...