Stock markets end marginally higher as heavy sell-off in IT counters spoil sentiment
Benchmark indices Sensex and Nifty ended marginally higher on Wednesday (February 4, 2026) as a sharp decline in IT blue-chip stocks restricted the rally in the markets.
After a remarkable rally in the previous trade, the 30-share BSE Sensex ended 78.56 points or 0.09% higher at 83,817.69. During the day, it hit a high of 83,947.53 and a low of 83,119.95, gyrating 827.58 points.
The 50-share NSE Nifty went up by 48.45 points or 0.19% to settle at 25,776.
From the Sensex firms, Eternal, Trent, NTPC, Adani Ports, Power Grid and Maruti were among the biggest gainers.
Infosys, Tata Consultancy Services, HCL Tech and Tech Mahindra were the biggest laggards, declining as much as 7%.
The BSE IT index tumbled 5.49% to settle at 35,109.51.
“While Oil & Gas, consumer durables, metal and automobile stocks recorded strong gains, IT stocks faced sharp selling pressure, tracking weakness in global technology shares. Sentiment in the sector deteriorated after AI startup Anthropic unveiled an end-to-end workflow automation productivity tool, rekindling concerns that rapid advances in AI could disrupt traditional software business models and weigh on industry-wide profitability,” Ponmudi. R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Foreign institutional investors turned buyers on Tuesday (February 3, 2026) as they bought equities worth ₹5,236.28 crore, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth ₹1,014.24 crore.
On Tuesday (February 3, 2026), the Sensex ended at 83,739.13, up 2,072.67 points or 2.54%. The Nifty zoomed 639.15 points or 2.55% to settle at 25,727.55.
India and the U.S. have agreed on a framework for a trade deal under which Washington will bring down tariffs on Indian goods to 18% from the current 50%. The announcement is important because the U.S. has imposed a steep tariff on Indian goods entering American markets, effective August 27, 2025.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index higher and Hong Kong’s Hang Seng index ended higher. Japan’s Nikkei 225 index ended lower.
European markets were trading on a mixed note.
U.S. markets ended lower on Tuesday (February 3, 2026). The Nasdaq Composite index tanked 1.43%, S&P 500 declined by 0.84% and Dow Jones Industrial Average dipped 0.34%.
“Domestic equities witnessed a volatile session, swinging between gains and losses as rising U.S.–Iran tensions kept investors on edge,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Overall upside remained limited due to weakness in IT stocks amid concerns over reduced demand for traditional outsourcing following Anthropic’s introduction of new AI-driven automation tools, he added.
Brent crude, the global oil benchmark, advanced 0.36% to $67.57 per barrel.
Published – February 04, 2026 04:47 pm IST
