Taking Stock: Market rebounds from day's low amid AI woes; Nifty above 25,750

Market Today

• Sensex and Nifty ended marginally higher despite IT stock selloff
• Nifty IT index fell 6 percent, its biggest drop since April 2025
• Broader markets outperformed; Nifty Midcap rose 0.6%, Smallcap gained 1.2%

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After a strong close in the previous session, Indian benchmark indices ended marginally higher in a volatile February 4 session, despite a sharp selloff in IT stocks.

Weak global cues and a selloff in heavyweight IT stocks—amid rising concerns over the impact of artificial intelligence—dragged the benchmarks lower at the open. However, the Nifty index staged a smart recovery from the low of 25,563.95 in the early hours and then traded in a narrow range for the remainder of the session to close with little change.

At close, the Sensex was up 78.56 points or 0.09 percent at 83,817.69, and the Nifty was up 48.45 points or 0.19 percent at 25,776.

Broader markets outperformed, with the Nifty Midcap index rising 0.6 percent and the Smallcap index gaining 1.2 percent.

Also Read - SEBI not considering any immediate F&O measures, says Tuhin Kanta Pandey

ONGC, Eternal, Trent, Adani Ports and NTPC led the gains on the Nifty, while IT majors Infosys, TCS, Tech Mahindra, HCL Technologies and Wipro were among the top laggards.

The Nifty IT index plunged 6 percent, marking its biggest single-day fall since April 4, 2025, as stocks such as Infosys, TCS, Tech Mahindra, HCL Technologies and Wipro came under heavy pressure. On the other hand, auto, energy, consumer durables, PSU, realty, metal, oil & gas and power advanced 1–2 percent.

Also Read - AI concerns wipe out nearly Rs 2 lakh crore m-cap from top IT stocks

Index	Prices	Change	Change%
Sensex	76,034.42	-829.29	-1.08%
Nifty 50	23,639.15	-227.70	-0.95%
Nifty Bank	55,100.95	-634.80	-1.14%

Nifty 50 23,639.15 -227.70 (-0.95%)

Thu, Mar 12, 2026

• 1D
• 5D
• 1M
• 3M
• 6M
• 1Y
• 2Y

Biggest Gainer	Prices	Change	Change%
Coal India	470.10	23.35	+5.23%

Biggest Loser	Prices	Change	Change%
M&M	3,031.20	-137.00	-4.32%

Best Sector	Prices	Change	Change%
Nifty Energy	36834.35	695.85	+1.93%

Worst Sector	Prices	Change	Change%
Nifty Auto	25098.00	-828.00	-3.19%

In stock specific, Emami share price jumped 2.5% after strong Q3 earnings, Pidilite Industries share price rose 2.5% on better Q3 earnings, Sheela Foam shares surged 14% on strong Q3 earnings, NBCC India share price rose 3.5% on winning multiple orders, Yes Bank share price added 1% on RBI nod to appoint MD & CEO, Angel One shares gained 3.5% after better January numbers, Axiscades Technologies share price rose 5% after arm bags contract of USD 1.4 million, Sigachi Industries shares surged 15% after MD, CEO gets bail, Capacite Infraprojects shares rose 8% on winning order worth Rs 445 crore.

Also Read - IT stocks fall up to 8%: How big a threat is Anthropic's AI tool for Indian IT firms? Here's what analysts say

More than 80 stocks touched their 52-week high, including Oil India, GE Vernova TD, MRPL, Bharat Forge, APL Apollo, Jindal Steel, Adani Ports, Ashok Leyland, among others. Click to View More

Nearly 90 stocks touched their 52-week lows, including Happiest Minds, Newgen Software, KPIT Technologies, Rainbow Child, among others. Click to View More

Outlook for February 5

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

After showing a massive upmove and the formation of huge opening upside gap on Tuesday, Nifty moved up gradually amidst range movement on Wednesday and closed the day higher by 48 points. Nifty opened on a weak note on the backdrop of selling pressure in IT sector and recovered smartly from the lows of 25563 levels. It later moved into a range bound action with positive bias for the mid to later part of the session.

A small bullish candle has been formed on the daily chart with minor upper and lower shadow. The said market action indicates a breather type pattern in the market after a massive upmove of Tuesday. The huge opening upside gap of Tuesday remains intact with partially filled.

The underlying short-term trend of the Nifty continues to be positive. The next upside hurdles to be watched around 26000 and next 26350 levels in the near term. Immediate support is placed at 25600.

Ajit Mishra – SVP, Research, Religare Broking

Markets traded range-bound on Wednesday as investors assessed follow-through activity after Tuesday’s strong rally triggered by the India–US trade deal. After a flat start, the Nifty oscillated within a narrow band through the session and ended marginally higher at 25,779.5. Sectoral trends were mixed, with buying interest visible in auto, metal and energy stocks, while the IT index declined sharply and underperformed the broader market. Market breadth remained firmly positive, supported by a sustained rebound in midcap and smallcap stocks.

Sentiment stayed cautious amid mixed global cues and some profit booking following the recent relief rally. Weakness in global technology stocks weighed on domestic IT counters, leading to sectoral divergence. At the same time, optimism surrounding the India–US trade agreement and expectations of improved foreign participation continued to support cyclical stocks and select heavyweight names.

After the recent sharp swings, some consolidation would be healthy as long as the Nifty holds the 25,400–25,500 zone. On the upside, the index may attempt a move towards the 26,000 level, followed by a gradual push towards record highs. Among key sectors, banking, energy, metal and auto continue to show resilience, while pharma, FMCG and IT remain relatively subdued. Participants should align positions accordingly, with an emphasis on stock selection and disciplined trade management.

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