Last Updated on February 4, 2026 10:14 pm by BIZNAMA NEWS
AMN / BIZ DESK
Markets ended marginally higher on Wednesday, but the session remained highly volatile and sector-driven as a sharp crash in IT stocks erased much of the strength seen in oil & gas, consumer durables and metals. The BSE Sensex gained 78.56 points or 0.09% to close at 83,817.69, while the NSE Nifty added 27 points or 0.10% to settle at 25,754.55.
The day’s biggest highlight was the massive selloff in the IT sector, triggered by renewed fears that rapid advances in artificial intelligence could disrupt the traditional outsourcing-led business model of Indian software majors. The Nifty IT index plunged nearly 6%, marking its steepest single-day fall in six years. The fall was sparked after US-based AI start-up Anthropic announced major upgrades to its Claude AI chatbot, including an end-to-end workflow automation productivity tool designed specifically for legal services. Market participants interpreted this as a direct threat to conventional IT service delivery and billing models, increasing concerns about margin pressure and intensified global competition.
Among frontline stocks, Infosys emerged as the biggest loser, crashing 7.37% to ₹1,534.00. TCS dropped 6.99% to ₹2,999.90, while HCL Tech slipped 4.58%, Tech Mahindra fell 4.52%, and Wipro declined 3.79%. Analysts said weakness in global tech stocks further added to negative sentiment, accelerating selling in Indian IT counters.
Despite the IT slump, broader markets remained resilient and outperformed the benchmarks. The Nifty Midcap 100 rose 0.63% to 59,683.60 and the Nifty Smallcap 100 surged 1.27% to 17,205.10, indicating strong risk appetite outside the large-cap IT pack. Market breadth also stayed firmly positive, with 2,726 stocks advancing against 1,477 declines on the BSE, keeping the advance-decline ratio at a healthy 1.82.
On the macro side, the rupee weakened, snapping its two-day winning streak. It depreciated by 18 paise to close at 90.44 per dollar, pressured by soft regional currencies and rising commodity prices. Investors remained cautious ahead of Friday’s RBI monetary policy decision.
In commodities, spot gold continued its rebound and surged above $5,050 per ounce, supported by aggressive dip-buying after last week’s sharp fall. Meanwhile, WTI crude remained above $64 per barrel as markets reacted to a sharp 11-million-barrel inventory draw reported by the API.
Going forward, analysts expect consolidation with Nifty resistance near 25,800–25,850 and support around 25,600–25,500, while RBI policy and US jobs data will remain key triggers.
Sector-wise Performance (Summary)
1. Information Technology (Worst Performer)
- Nifty IT index down ~6%
- Major losers: Infosys, TCS, HCL Tech, Tech Mahindra, Wipro
- Trigger: AI disruption fears after Anthropic’s Claude upgrade
2. Oil & Gas (Strong Gains)
- ONGC up 3.50%
- Sector supported by firm crude prices and buying interest
3. Consumer & Retail (Positive)
- Trent up 5.18%
- Consumer Durables index rose over 2%
4. Metals (Positive)
- Metals index climbed over 2%
- Helped by broad-based buying
5. Power & Infrastructure (Supportive)
- NTPC up 2.30%
- Adani Ports up 2.25%
6. Broader Markets (Outperformance)
- Midcap +0.63%
- Smallcap +1.27%
- Strong advance-decline ratio signals wider participation
