Markets End Flat as IT Crash Offsets Gains in Energy, Banks

Indian equity markets ended slightly higher on Wednesday despite a steep sell-off in IT stocks , as gains in banking , energy , and infrastructure shares helped stabilise sentiment. The BSE Sensex rose 78.56 points (0.09%) to close at 83,817.69 after swinging widely through the session, while the NSE Nifty added 48.45 points (0.19%) to settle at 25,776. Market breadth remained positive, with advancing shares comfortably outnumbering decliners on the BSE, signalling selective buying even as volatility persisted.

The main drag came from the IT sector, which witnessed one of its sharpest single-day declines in recent years. Heavyweights such as Infosys , TCS , HCL Tech , and Tech Mahindra tumbled as much as 7%, dragging sectoral indices sharply lower. Analysts attributed the fall to weak global cues and rising concerns that rapid adoption of AI-driven automation could reduce long-term demand for traditional outsourcing and software services. Weakness in U.S. tech stocks and caution around corporate spending outlook further intensified selling pressure.

However, losses were cushioned by strong performance in domestic-focused and cyclical sectors. Utilities , Oil & Gas , Power , Consumer Durables , Metals , and Auto stocks recorded healthy gains, reflecting a rotation of funds away from export-oriented IT into value and infrastructure-linked themes. Shares of NTPC , Power Grid , Reliance Industries , Maruti Suzuki , and ICICI Bank were among the key contributors to the indices’ gains, highlighting resilience in domestic growth plays.

Investor behaviour also reflected caution following the recent relief rally, with some participants booking profits at higher levels. At the same time, optimism around improving India–U.S. trade engagement and steady domestic macro indicators provided underlying support. Foreign Institutional Investors were net buyers, and Domestic Institutional Investors also added to equities, signalling institutional confidence despite sector-specific stress.

In the currency market, the rupee weakened by 11 paise to close at 90.43 against the U.S. dollar. Precious metals extended gains amid global uncertainties , with gold and silver prices rising sharply in the domestic market. Analysts say near-term market direction will depend on global tech sentiment, foreign fund flows, the RBI policy , and further clarity on international trade developments.