Closing Bell: Sensex settles 500 pts lower, Nifty closes below 25,650 as broad-based selling persists; smallcaps lag

Shares of Dredging Corporation of India sank 10.2% to Rs 1,00 apiece as PSU firm posts a second straight quarter of losses, hurt by lower demand for dredging services at ports

Stock was down 2.7% before reporting results.

The firm posted Q3 loss at Rs 25 crore versus profit of Rs 16 crore last year and loss of Rs 34 crore in Q2.

India VIX slipped below 12.2, indicating easing volatility expectations even as benchmarks stayed in the red.

Sectorally, metals, capital goods, auto and consumer durables continued to drag, all trading around 0.5-1 percent lower. Defensive pockets such as healthcare and oil & gas were marginally positive to flat, but gains were insufficient to offset losses elsewhere.

Market breadth remained unfavourable, with declines outpacing advances. The Nifty Smallcap 100 was down over 1.2 percent, while the Nifty Midcap 100 slipped 0.3 percent, signalling continued pressure outside the frontline indices.

The Sensex extended losses in late afternoon trade, down 481 points, or 0.57 percent, at 83,337, while the Nifty slipped 133 points to 25,644. The indices remain off the day’s lows, but the recovery has lacked momentum, with selling pressure still evident across the broader market.

Select midcap stocks extended their strong run, with Lupin, APL Apollo Tubes and Bharat Forge touching fresh 52-week highs in today’s session, standing out amid otherwise cautious broader market sentiment.

Select largecap stocks continued to see strong buying momentum, with Indian Oil Corporation, Jindal Steel & Power, Adani Ports and BPCL touching fresh 52-week highs during the session, even as broader benchmarks traded under pressure.

Sectoral indices largely traded in the red, led by sharp losses in metals (-1.2 percent) and continued weakness in IT (-0.6 percent), which remains the worst performer on a one-year basis. Realty, auto, infra and FMCG also slipped, while PSU banks stood out with marginal gains, extending their strong longer-term outperformance despite broader market pressure.

Losses remained uneven across market segments, with the Nifty Smallcap 100 down over 1.5 percent, sharply underperforming frontline indices. The Nifty Midcap 100 slipped a modest 0.4 percent, while the Nifty 50 and Bank Nifty were down around 0.5-0.6 percent, indicating continued pressure in broader stocks even as benchmarks showed relative resilience.

Market breadth turned sharply negative, with just 12 stocks advancing against 37 declines on the Nifty 50, while the broader Nifty 500 saw selling pressure intensify with 364 stocks in the red versus only 130 gainers, reflecting the widening nature of the ongoing market correction.

Selling pressure widened across BSE sectoral indices, with all major sectors trading in the red. Metals and capital goods slipped over 1 percent, while realty, telecom and TECk indices also saw sharp cuts. Cyclical and consumption-linked sectors such as auto, consumer durables and discretionary stocks remained under pressure, even as defensives like FMCG and healthcare failed to offer meaningful support.

Eternal emerged as the biggest drag on the Sensex, sliding over 3 percent, while heavyweights such as Bharti Airtel, Bharat Electronics, Kotak Mahindra Bank and InterGlobe Aviation also weighed on the index. Losses extended across financials, consumption and select industrial names, with IT majors like HCL Tech and defensives such as ITC and Titan Company also trading lower.

Max Healthcare Institute shares were trading 0.7 percent higher at Rs 1,032.20, even as the stock remains down about 12 percent over the past year. The hospital operator reported a 9 percent year-on-year rise in Q3 revenue to Rs 2,484 crore, while EBITDA grew 4 percent to Rs 648 crore; margins moderated to 26.1 percent from 27.3 percent a year ago.

Max Healthcare reported a 9 percent year-on-year rise in Q3 revenue to Rs 2,484 crore, while EBITDA increased 4 percent to Rs 648 crore. Operating margins eased to 26.1 percent from 27.3 percent a year ago.

Power Finance Corporation shares were trading at Rs 411.30, down 0.8 percent in Thursday’s session, extending muted performance despite an 8 percent year-on-year rise in Q3 net profit. The stock is marginally lower over the past year, down 0.4 percent.

Power Finance Corporation reported an 8 percent year-on-year rise in consolidated net profit to Rs 6,292.5 crore for Q3, supported by steady growth in revenue and operating earnings. Revenue increased 8.6 percent to Rs 29,094.8 crore, while EBITDA grew 6.4 percent to Rs 28,064 crore, though margins moderated to 96.5 percent from 98.4 percent a year earlier.

Suzlon Energy shares fell nearly 5 percent to Rs 47.41 in Thursday’s session, extending weakness despite the company reporting double-digit growth in Q3 profit and a sharp improvement in revenue and EBITDA. The stock is now down over 15 percent over the past year, indicating that the results failed to offset broader selling pressure and near-term profit-booking in the counter.

Suzlon Energy reported a robust Q3 performance, with net profit rising 14.8 percent year-on-year to Rs 445.2 crore, supported by a sharp pickup in execution. Revenue surged 42.4 percent to Rs 4,228 crore, while EBITDA jumped 48 percent to Rs 730.5 crore, with margins improving to 17.28 percent from 16.6 percent a year ago.

Shares of Indian Oil Corporation were trading at Rs 175.22, up 1.41 percent on the day, extending gains after the company posted a sharp sequential jump in Q3 profit and margins. The stock is up 38.6 percent over the past one year.

Indian Oil Corp reported a strong sequential performance in Q3, with net profit rising 59.3 percent quarter-on-quarter to Rs 12,126 crore. Revenue increased 14.3 percent QoQ to Rs 2.04 lakh crore, while EBITDA climbed 42.8 percent to Rs 20,824.8 crore. EBITDA margin expanded sharply to 10.2 percent from 8.2 percent in the previous quarter.

PB Fintech shares surged more than 5 percent to Rs 1,518 after the company said its board meeting scheduled to consider a qualified institutional placement (QIP) has been cancelled. The stock moved sharply higher as investors reacted to the withdrawal of the proposed fundraising, which had earlier been positioned to support inorganic growth and potential overseas acquisitions, including in insurance distribution markets.

Silver-linked ETFs dominated trading activity on the NSE, with Nippon India Silver ETF and Tata Silver ETF among the most actively traded securities as silver prices slumped sharply. Nippon India Silver ETF fell nearly 11 percent to around Rs 236, while Tata Silver ETF dropped over 11 percent to about Rs 24, reflecting intense selling pressure and heightened investor churn in precious metals during the session.

Selling pressure intensified in the BSE Midcap space as Tube Investments stock plunged over 9 percent, emerging as the top laggard, while Hexaware Technologies slid more than 7 percent. Emcure Pharmaceuticals, Muthoot Finance, Kaynes Technology and NALCO also remained under pressure, reflecting the continued weakness across select midcap industrial, IT and metal stocks.

Inventurus Knowledge shares surged nearly 6 percent to top the BSE Midcap gainers, followed by strong moves in Jubilant Food, FSN E-Commerce (Nykaa), Whirlpool and Emami. Auto and consumption-linked stocks such as Escorts Kubota and UNO Minda also traded firmly, offering pockets of strength in an otherwise weak broader market.

Sectoral performance remained broadly negative, with metals, capital goods, consumer durables and IT among the worst hit. No major sector managed to post meaningful gains, underscoring the lack of risk appetite as selling pressure persisted into afternoon trade.

On the downside, Eternal, InterGlobe Aviation and Bharat Electronics led losses, while IT majors Infosys and HCL Tech, along with Bharti Airtel and ITC, added to the drag, keeping the benchmarks under pressure.

Buying was limited to a handful of stocks, with Trent gaining over 2 percent to emerge as the top Sensex gainer, followed by modest gains in SBI, Tata Steel and Bajaj Finance. Most index heavyweights, however, continued to trade in the red.

At 1:00 pm, the Sensex was down 446 points, or 0.53 percent, at 83,371.6, while the Nifty slipped 136 points to 25,639.9. Market breadth remained firmly negative, with over 2,300 stocks declining against about 1,360 advances, signalling sustained selling pressure across the broader market.

Ambarish Kenghe, Group CEO of Angel One, said market turnover across exchange segments jumped over 40 percent after the India-US trade deal announcement, with aggregate turnover touching Rs 5.66 lakh crore versus the January 2026 industry average.

Shares of UNO Minda rose 2.32 percent to Rs 1,232.70 in Thursday’s session after the company reported a consolidated net profit of Rs 300.48 crore for the quarter ended December 31, 2025, and announced an interim dividend of Rs 0.90 per equity share for FY26. The record date for determining shareholders’ eligibility for the dividend has been set as February 11, 2026. UNO Minda is a constituent of the Nifty Midcap 150 index.

UNO Minda reported a strong Q3 performance, with consolidated net profit rising 18.9 percent year-on-year to Rs 276.6 crore, while revenue grew 20 percent to Rs 5,018 crore. EBITDA increased 21 percent to Rs 554 crore, with margins largely flat at 11 percent versus 10.9 percent a year ago. Separately, the company said it will set up a new manufacturing facility for its AW4W plant at Chhatrapati Sambhajinagar in Maharashtra.

Shares of Bharti Airtel down 1%% ahead of quarterly results

Analysts on average see company's Q3 profit halving to Rs 7,367 crore; year-ago profit was lifted by a Rs 7,550-crore exceptional gain from its Indus Towers stake, showed data compiled by LSEG

Brokerage Ambit Capital expects 2.4% sequential ARPU growth for company, led by elimination of entry level plans.

Centrum Capital expects company's India wireless subscribe base to rise by 3 million sequentially

Both brokerages expect company's revenue to rise 19.4-20% YoY.

Shares of Hero MotoCorp down 1% at Rs 5,788.50 apiece so far on the day

Analysts on average expect India's top two-wheeler maker by sales to report a 14.5% YoY increase in Q3 profit to Rs 1,378 crore, showed data compiled by LSEG.

Shares of Max Healthcare Institute rise 0.3% at Rs 1,028.7 apiece ahead of Q3 results.

Kotak expects Q3 to be a weak quarter; forecasts sequential decline in occupancies and YoY drop in average revenue per occupied bed due to contribution from new units

Brokerage expects quarterly sales growth to be muted on-year, hit by lower cashless insurance patients for one month, minimal benefit from rate hikes in federal health schemes

HBSC expects 15.1% revenue growth year-on-year but a 167 bps dip in EBITDA margins on cost drag from newer units.

JSW Cement shares surged as much as 9.3%, last up 8.2% at Rs 125.61 apiece.

Stock is set for its best day since listing in August 2025.

Cement maker posts Q3 consolidated net profit of Rs 142 crore versus loss of Rs 69 crore a year ago.

Company's revenue from operations jumped 13%, lifted by a 14% YoY rise in total volumes.

Selling pressure intensified in the BSE Midcap space, with sharp losses in IT and capital goods stocks. Hexaware Technologies slid over 7 percent, while Tube Investments fell nearly 7 percent. Kaynes Technology dropped 5 percent, and heavyweights such as NALCO, Muthoot Finance and Dixon Technologies were down 4-4.5 percent. Defence and jewellery names also remained under pressure, with Bharat Dynamics and Kalyan Jewellers declining over 3.5 percent each.

Buying emerged in pockets of the BSE Midcap index, led by consumer-facing and discretionary stocks. Emami rose over 3.5 percent, while FSN E-Commerce (Nykaa) and Inventurus Knowledge Services gained over 3 percent each. Escorts Kubota, Whirlpool and Jubilant FoodWorks also traded firmly higher, bucking the broader weakness in midcap stocks.

On the Sensex, gains were limited to a handful of stocks such as SBI, Trent, HUL and TCS, while selling pressure dominated heavyweights including Eternal, InterGlobe Aviation, Asian Paints, Titan, Axis Bank and Maruti Suzuki.

FMCG and IT stocks offered only marginal support, with sectoral indices down about 0.3 percent each. However, this was insufficient to offset heavier losses in metals, autos and discretionary segments.

BSE Metal index fell over 2.2 percent, emerging as the worst-performing sector, while auto, capital goods, consumer durables and realty indices were down 1-1.7 percent, highlighting broad-based weakness across cyclicals.

At 11:00 am, the Sensex was down 444 points and the Nifty slipped below 25,650, with over 2,190 stocks declining versus around 1,300 advances, signalling sustained selling pressure across the market.

Sectoral trends on the BSE remain decisively weak, led by sharp losses in metal stocks, with the BSE Metal index down over 2.3 percent, extending its recent pullback despite strong year-on-year gains. Auto, capital goods, consumer durables and realty indices were also down 1-1.7 percent, signalling broad-based selling across cyclicals, while FMCG, healthcare and IT posted relatively smaller declines. Oil & gas remained flat, offering limited support, as risk appetite stayed subdued across most sectors.

Broader markets continued to lag the benchmarks, with the BSE Midcap index down 1.6 percent and the Smallcap index sliding over 2 percent, reflecting sustained selling pressure beyond frontline stocks. While the Sensex and BSE 200 slipped around half a percent each, banking stocks remained relatively resilient, with the BSE Bankex down just 0.1 percent, cushioning the headline indices amid weakness across the broader market.

Banking indices showed relative stability compared with the broader market, limiting downside on the benchmarks. The BSE Bankex was marginally lower, down just 0.1 percent, while the Nifty Bank slipped 0.15 percent, reflecting selective selling but no broad-based exit from banking stocks so far.

Midcap and smallcap stocks continued to bear the brunt of selling pressure, with the BSE Midcap index down 1.6 percent and the BSE Smallcap index sliding over 2 percent. On the NSE, the Nifty Midcap 100 fell 0.7 percent, while the Nifty Smallcap 100 dropped 1.4 percent, underlining sustained risk aversion beyond the frontline indices.

Selling pressure is concentrated in select index heavyweights, with InterGlobe Aviation leading losses, down over 2.5 percent. Defence stock Bharat Electronics and consumer-facing names Eternal and Asian Paints are also under pressure. Weakness is visible across cyclicals and financials, with Axis Bank, M&M, Tata Steel, Maruti Suzuki, Titan Company and Larsen & Toubro all trading over 1 percent lower, keeping the Sensex firmly in the red despite limited support from a handful of gainers.

FMCG and select largecaps are offering limited support amid broader weakness, with HUL leading the Sensex gainers, up over 1 percent, followed by Trent. IT heavyweights Infosys, TCS, HCL Tech and Tech Mahindra are seeing mild buying after sharp recent losses, while SBI and NTPC are marginally higher, helping cushion the benchmark’s downside.

Defensive pockets provided limited support, with FMCG trading marginally higher and oil & gas holding modest gains, preventing a sharper slide in the benchmarks.

Auto, realty and consumer durables stocks remained under sustained selling pressure, each down around 1 percent or more, signalling caution in economically sensitive segments.

Capital goods and metals emerged as the biggest sectoral laggards, with the BSE Capital Goods index down nearly 2 percent and metals slipping over 2 percent, adding to pressure on the benchmarks.

Selling intensified across the Sensex, leaving just four stocks -- HUL, SBI, ICICI Bank and Infosys -- in positive territory. Most index heavyweights traded lower, underlining the lack of leadership on the upside.

Despite sharp stock-specific and sectoral moves -- particularly in IT -- India VIX remains subdued, suggesting that volatility expectations are easing even as leadership rotates within the market.

Technical analysts note that the Nifty continues to hold above key short-term averages, with immediate support seen around 25,600-25,650. On the upside, 25,800-26,000 remains a stiff resistance zone, with a decisive breakout needed to shift sentiment meaningfully.

Brokerage data shows FIIs reducing net index shorts, indicating easing bearish positioning. However, analysts caution that sustained FII buying, rather than one-off short covering, will be key to strengthening the ongoing consolidation phase.

Market strategists continue to highlight the sharp divergence within the Nifty, with IT stocks bearing the brunt of selling following the global tech rout, while domestic consumption-led sectors such as banking, autos, oil & gas and consumer names remain resilient, cushioning the benchmarks.

Several brokerages continue to flag a non-directional, range-bound market despite the recent rebound. Analysts note that the Nifty is still oscillating within a broad 25,600-25,900 zone, with no decisive breakout yet, reinforcing the case for level-based trading rather than aggressive directional bets.

Broader indices continued to lag, with the Nifty Midcap 100 down over 0.5 percent and the Nifty Smallcap 100 falling more than 1 percent, signalling risk aversion beyond frontline stocks.

On the upside, FMCG stocks provided some cushion, with HUL rising over 1 percent. ONGC, Infosys, Trent and Wipro posted modest gains, though buying remained selective and insufficient to offset losses elsewhere.

Nifty Metal slipped over 2 percent, emerging as the worst-performing sector. Hindalco fell more than 3 percent, while Tata Steel, Bharat Electronics and Larsen & Toubro also traded lower, adding pressure on the benchmarks.

At 9:28 am, the Sensex was down 302.5 points, or 0.36 percent, at 83,515.2, while the Nifty slipped 104.1 points to 25,671.9. Declines outpaced advances, with 1,562 stocks falling against 1,336 advancing, indicating broadening weakness.

Sectoral trends were mixed. BSE Metal slipped 1.6 percent, emerging as the top laggard, while Capital Goods and Realty also traded lower. FMCG gained 0.7 percent and Oil & Gas rose 1.3 percent, offering some cushion to the broader market, even as most other sectors hovered close to flat.

On the Sensex, HUL rose 1.7 percent, leading early gains, followed by NTPC, Infosys and SBI. On the downside, InterGlobe Aviation slipped 1.7 percent, while Tata Steel, Bharti Airtel and Larsen & Toubro also traded lower, weighing on the index.

At 9:20 am, the Sensex was down 138.7 points at 83,679, while the Nifty declined 53.7 points, or 0.2 percent, to 25,722.3. As many as 1,325 shares advanced, against 1,175 declines, indicating a largely rangebound and selective session.

Sectoral moves were largely muted in early trade. Nifty Metal slipped 1.8 percent, weighing on the market, while Realty and Pharma also traded lower. On the upside, FMCG rose 0.5 percent and PSU Bank gained 0.7 percent, providing limited support. Broader markets stayed under mild pressure, with the Nifty Midcap 100 down 0.2 percent and the Smallcap index lower by around 0.6 percent, while India VIX remained steady near 12.3.

The Indian rupee opened weaker on Thursday, slipping 0.1 percent to 90.5150 against the US dollar, compared with the previous close of 90.4350. In commodities, precious metals saw sharp selling pressure, with silver plunging 6 percent on MCX to around Rs 2.52 lakh per kg, while gold prices declined nearly 2 percent.

Motilal Oswal said Indian IT stocks tracked the global tech sell-off on February 4 after comments from Palantir’s earnings call sharpened concerns around AI-led disruption. The brokerage noted that Palantir highlighted how its AI platform is replacing third-party software and even compressing large ERP and SAP implementation timelines from years to weeks -- bringing ERP services, not just coding hours, into focus. Motilal Oswal expects the next 3-6 months to be crucial for tracking AI-native partnerships, with a potential pick-up in short-cycle AI services deals by mid-2026.

In the pre-open trade on Thursday, the benchmark indices opened marginally lower, with the Sensex down 66 points at 83,752 and the Nifty slipping 20 points to 25,756. Market activity was muted at this stage.

VK Vijayakumar of Geojit said the Nifty is consolidating at the index level, but sharp churn continues beneath the surface, led by a steep sell-off in IT stocks following weakness in US tech. He noted that fears around AI-driven automation hurting outsourcing margins are weighing on Indian IT, though the actual impact remains uncertain. In contrast, domestic consumption-driven sectors -- banking, autos, and select large caps such as Reliance and Bharti -- are showing resilience, supported by a growth-focused Budget, recent trade deals, and a low interest-rate environment, with FII flow trends emerging as a key monitor.

Wall Street closed lower overnight as renewed concerns over stretched valuations and the durability of the AI-led rally hit technology stocks. Advanced Micro Devices plunged 17 percent after a weak revenue outlook, dragging the semiconductor space lower, while Nvidia fell over 3 percent and the Philadelphia Semiconductor Index slid 4.4 percent. Palantir dropped nearly 12 percent, reversing the previous session’s gains, and Alphabet declined almost 2 percent ahead of its earnings, weighing on broader market sentiment.

On February 4, the Nifty 50 rose 48 points (0.2 percent) to 25,776, while the Bank Nifty jumped 197 points (0.33 percent) to 60,238. Market breadth remained healthy, with a total of 2,012 shares rising against 911 declining shares on the NSE.

The Nifty 50 and Bank Nifty managed to hold above Tuesday’s low levels, with further improvement in momentum indicators and a consistent fall in the VIX.