Sensex And Nifty Drift Lower Over IT Sector Weakness

Indian equity markets opened lower on Thursday, tracking mixed global cues and a slump in IT stocks. By 9:30 AM, the Sensex fell 347 points (0.42%) to 81,997, while the Nifty lost 81 points (0.32%) to 25,260.

The Indian rupee also weakened, breaching the key 92 per dollar mark, surpassing last week’s record low of 91.9650.

Broader market indices showed divergence from benchmarks, with the Nifty Midcap 100 rising 0.21% and the Nifty Smallcap 100 surging 0.47%.

Most sectoral indices traded lower, except metal, PSU banks, realty, and oil & gas. Among gainers, Nifty Metal rose 1.76%, PSU Bank 0.70%, and Oil & Gas 0.78%, while Nifty IT fell 1.29%, emerging as the main laggard.

Market watchers noted immediate support for Nifty at 25,200, with resistance at 25,400–25,500.

Analysts described Nifty’s recent 300-point rally as a temporary response ahead of the Union Budget, with bears covering shorts to avoid large positions.

Foreign institutional investors (FIIs) are expected to maintain a ‘sell India’ stance unless significant Budget announcements attract capital back.

Asian markets largely traded lower, with China’s Shanghai down 0.1% and Japan’s Nikkei flat, while Hong Kong’s Hang Seng gained 0.34%. US markets closed mixed overnight, with the Nasdaq up 0.17%, the S&P 500 down 0.01%, and the Dow up 0.02%.

On 27 January, FIIs emerged as net buyers for the first time in 2026, acquiring equities worth Rs 480 crore, while domestic institutional investors (DIIs) bought Rs 3,360 crore.

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