Stock markets higher as heavy sell-off in IT counters spoils sentiment
Benchmark indices Sensex and Nifty ended marginally higher on Wednesday as a sharp decline in IT blue-chip stocks restricted the rally in the markets.
After a remarkable rally in the previous trade, the 30-share BSE Sensex ended 78.56 points or 0.09 per cent higher at 83,817.69. During the day, it hit a high of 83,947.53 and a low of 83,119.95, gyrating 827.58 points. The 50-share NSE Nifty went up by 48.45 points or 0.19 per cent to settle at 25,776. From the Sensex firms, Eternal, Trent, NTPC, Adani Ports, Power Grid and Maruti were among the biggest gainers. Infosys, Tata Consultancy Services, HCL Tech and Tech Mahindra were the biggest laggards, declining as much as 7 per cent. The BSE IT index tumbled 5.49 per cent to settle at 35,109.51.
“While Oil & Gas, consumer durables, metal and automobile stocks recorded strong gains, IT stocks faced sharp selling pressure, tracking weakness in global technology shares. “Sentiment in the sector deteriorated after AI startup Anthropic unveiled an end-to-end workflow automation productivity tool, rekindling concerns that rapid advances in AI could disrupt traditional software business models and weigh on industry-wide profitability,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.Foreign institutional investors turned buyers on Tuesday as they bought equities worth INR 5,236.28 crore, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth INR 1,014.24 crore. On Tuesday, the Sensex ended at 83,739.13, up 2,072.67 points or 2.54 per cent. The Nifty zoomed 639.15 points or 2.55 per cent to settle at 25,727.55.
India and the US have agreed on a framework for a trade deal under which Washington will bring down tariffs on Indian goods to 18 per cent from the current 50 per cent. The announcement is important because the US has imposed a steep tariff on Indian goods entering American markets, effective August 27, 2025.
