Last Updated on February 4, 2026 11:03 pm by INDIAN AWAAZ
AMN / BIZ DESK
The Domestic equity markets pulled off a narrow escape on Wednesday, managing to close in the green despite a massive wave of selling in the technology sector. While the broader market sentiment remained buoyant, the primary indices were held back by fears that rapid advancements in artificial intelligence are threatening the traditional software outsourcing model.
The BSE Sensex edged up by 78.56 points (0.09%) to finish at 83,817.69, while the NSE Nifty 50 gained 27 points (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.
Sector-Wise Performance
Information Technology: The AI Shockwave
The IT sector faced its worst day in six years, with the Nifty IT index crashing nearly 6%. The catalyst was a major update from US-based AI startup Anthropic, which introduced workflow automation tools for its Claude AI. This sparked fears that AI could soon automate the very tasks currently performed by Indian software giants.
- Infosys: -7.37% (₹1,534.00)
- TCS: -6.99% (₹2,999.90)
- HCL Tech & Tech Mahindra: Both declined over 4.5%.
Oil & Gas and Energy
Strong global cues and domestic demand helped this sector lead the recovery. ONGC rose 3.50% following a significant draw in crude inventories reported by the API, while NTPC gained 2.30% as energy demand remained robust. Consumer Durables and Retail
Consumer-facing stocks were the stars of the session. Trent surged over 5%, reflecting strong investor confidence in retail growth. The sector index as a whole rallied by more than 2%, acting as a vital counterbalance to the IT slump.
Midcap and Smallcap Outperformance
While the heavyweights struggled, the broader market showed remarkable resilience.
- Nifty Midcap 100: ↑ 0.63%
- Nifty Smallcap 100: ↑ 1.27% The market breadth was firmly positive, with roughly 1.82 stocks advancing for every one that declined.
Currency and Commodities
The Indian Rupee weakened by 18 paise, closing at 90.44 against the US Dollar. This dip was attributed to rising commodity prices and a general softening of Asian regional currencies.
In the commodities market, Gold continued its recovery, climbing back above $5,050 per ounce. Meanwhile, WTI Crude held steady above $64 per barrel, supported by a massive 11-million-barrel drop in US inventories.
The Road Ahead
Analysts suggest the market is entering a consolidation phase. The immediate resistance for the Nifty is pegged between 25,800 and 25,850, while support holds firm at the 25,500 level.
The next big triggers for the market will be:
- RBI Monetary Policy: The interest rate announcement scheduled for Friday.
- US Jobs Report: Global data that will dictate the direction of foreign fund flows.
https://biznama.com/share-bazar-feb-04-it