Market Wrap: Sensex snaps 3-day gain, Nifty holds 25,900 as IT selloff dampens sentiment

Benchmark indices Sensex and Nifty ended largely flat on Wednesday, with the 30-share Sensex snapping its three-day gaining streak, while Nifty managed to close marginally higher. The subdued close came amid a sharp selloff in IT stocks, with heavyweights such as TCS, Persistent and Infosys tumbling up to 3%.

The BSE Sensex ended 40 points lower to close the session at 84,234 or 0.05% in the red, while the Nifty 50 gained 19 points or 0.07% points to end the day at 25,954.

Expert views

“Indian benchmark indices traded in a narrow and choppy range after opening on a positive note. Volatility remained contained, and the broader undertone continued to stay constructive. Steady domestic institutional participation, selective earnings-driven buying and signs of stabilising FII flows are providing structural support to the market,” Ponmudi R, CEO of Enrich Money said.

However, the upside remains capped in the absence of a decisive breakout or fresh positive triggers. Sectoral trends were mixed, with banking, auto and healthcare stocks posting strong gains, while IT witnessed broad-based selling pressure, emerging as a key drag on the benchmark indices. Stability in the USD/INR pair is offering macro comfort and helping avert any sharp risk-off reaction. Overall, sentiment remains cautiously optimistic—resilient beneath the surface, yet awaiting a stronger directional catalyst, he added.

Global Markets

European equities edged lower on Wednesday as investors digested a fresh wave of corporate earnings. The pan-European Stoxx 600 was down about 0.2%, with most major regional markets trading in the red. London’s FTSE 100 bucked the broader trend, rising 0.3% as risk-off sentiment pushed investors toward defensive mining and energy stocks.

Global markets are also focused on the U.S. January nonfarm payrolls data. Asia, equities moved modestly higher despite weaker-than-expected Chinese inflation data.Meanwhile, U.S. stock futures edged up late Tuesday ahead of the delayed jobs report. S&P 500 and Nasdaq 100 futures each gained around 0.2%, while Dow Jones Industrial Average futures rose about 85 points, or nearly 0.2%. The Bureau of Labor Statistics’ January payrolls report was postponed due to the partial U.S. government shutdown that ended on Feb. 3.

Crude impact

Oil prices advanced on Wednesday, supported by rising geopolitical risk as U.S.-Iran talks remained fragile, while improving demand signals from India also helped ease concerns around a potential supply surplus.Brent crude futures climbed 57 cents, or 0.83%, to $69.37 a barrel by 0711 GMT, while U.S. West Texas Intermediate crude rose 56 cents, or 0.88%, to $64.52.

“Oil retains a bullish tail-risk bid as U.S.-Iran talks continue but remain delicate, keeping the Strait of Hormuz risk premium elevated amid ongoing sanctions pressure, tariff threats linked to Iranian trade and a heightened U.S. military presence in the region,” LSEG analysts said in a report.

Rupee vs Dollar

The Indian rupee ended 0.1% lower at 90.70 per U.S. dollar on Wednesday, compared with its previous close of 90.5775.

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)