Benchmarks End Flat After Volatile Session, IT Rout Caps Gains

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India Stocks fall

By Dehuti Jani

February 4, 2026 at 11:42 AM IST

Indian equity benchmarks ended Wednesday’s session nearly flat, snapping a two-day rally as a sharp sell-off in information technology stocks offset broader market strength. The Nifty50 rose 0.19% to close at 25,776, while the Sensex added 0.09% to settle at 83,817.69, after recovering from steep early losses. Sentiment remained supported by the recent India–US trade deal, but fears around rapid advances in artificial intelligence weighed heavily on IT stocks, dragging the Nifty IT index down nearly 6% its worst single-day fall since March 2020.

Heavyweights such as Infosys, TCS, HCL Tech and Tech Mahindra led the Sensex losers, while Eternal, Trent, NTPC, Power Grid and Adani Ports provided support. The broader market outperformed, with the Nifty Midcap and Smallcap indices gaining 0.63% and 1.27%, respectively. Sectorally, consumer durables and oil & gas stocks saw strong buying, while pharma ended marginally lower, highlighting a clear divergence between defensives, cyclicals and technology names.

Top Movers of the Day

Infosys plunged sharply as IT stocks came under intense selling pressure, with the heavyweight breaching key technical support levels amid a global tech sell-off.

HAL shares fell over 6% after reports indicated it is no longer competing to develop a major stealth fighter jet contract.

Deviyani International continued to gain, rising close to 9% after reporting steady Q3 results with improved revenue and EBITDA performance.

Reliance Industries stocks extended gains for a third consecutive session, adding support to the Nifty as RIL’s strong performance helped offset broader selling pressure.

Bharat Heavy Electricals Ltd secured a large order from Hindalco, supporting its share price and contributing to buying interest in capital goods stocks.

Adani Power, Adani Ports and Special Economic Zone, and Adani Enterprises continued to rally as Adani Group names extended their gains on trade-deal optimism.

Tata Power Company and other Q3 result plays such as Bajaj Finserv were highlighted among stocks expected to announce results, adding trading activity.

Futures & Options
Nifty February 2026 futures settled at 25,830, carrying a 54-point premium over the spot Nifty, which closed 48.45 points higher at 25,776, reflecting cautious optimism after a choppy session. Volatility cooled, with India VIX sliding 4.98% to 12.25, indicating easing near-term risk perceptions. Infosys, Tata Consultancy Services and Hindustan Aeronautics were the most actively traded stock futures on the NSE F&O segment, while the February 2026 contracts are set to expire on 24 February 2026.

Bonds
Government bond yields fell on Wednesday after a subdued start, as investors stayed cautious ahead of the Reserve Bank of India’s scheduled bond purchases and the upcoming policy decision over the next two days. The benchmark 10-year 6.48% 2035 bond yield closed at 6.6972%, easing from 6.7245% on Tuesday, after having jumped 7 basis points to 6.7662% on Monday following budget-related supply concerns.

Forex
The rupee ended modestly weaker on Wednesday as corporate hedging demand and dollar buying linked to maturing non-deliverable forward positions offset support from a broadly constructive outlook after the recent India–US trade deal. The rupee settled at 90.4350 per dollar, down about 0.2% from 90.2650 in the previous session, with traders noting that modest portfolio inflows were insufficient to counter near-term dollar demand.

Crypto
Crypto markets remain highly volatile, marked by a clear divergence across major assets. Bitcoin has come under sustained pressure, sliding to a 15-month low and trading near $76,400 after a sharp 14% weekly decline, largely driven by heavy ETF outflows and a broader risk-off shift. Ethereum, however, is showing relative resilience, hovering around $2,280 after a steep 25% drop earlier in the week, with early signs of stabilisation supported by modest institutional inflows into ETH-linked products.

US Stock Futures
US stock futures were mixed on Wednesday as persistent concerns over AI-driven disruption kept pressure on high-growth technology names, prompting a continued rotation into value stocks. Nasdaq 100 futures slipped 0.2%, S&P 500 futures were largely flat, while Dow Jones Industrial Average futures edged 0.1% higher. The shift in positioning was accompanied by renewed strength in safe havens, with gold and silver extending their recent gains.

US Treasury Notes
US Treasury yields edged modestly higher with the benchmark 10-year yield hovering around 4.28% after resilient manufacturing data reinforced the view of underlying economic strength. Markets are weighing the impact of a partial government shutdown against uncertainty surrounding the transition in Federal Reserve leadership, as investors assess Kevin Warsh’s policy stance for clues on the future rate path.

Top News