Sensex, Nifty Close Flat After Two-Day Rally As IT Stocks Slide

Indian equity markets ended Wednesday’s session nearly unchanged, bringing a two-day rally to a halt as a sharp sell-off in information technology stocks offset gains elsewhere.

Weak global cues and fresh concerns over rapid advances in artificial intelligence dampened investor confidence, particularly in software counters.

At the close, the Nifty added 48.45 points, or 0.19 per cent, to finish at 25,776.00. The Sensex edged up 78.56 points, or 0.09 per cent, to settle at 83,817.69.

Despite marginal gains, both indices traded within a narrow band, reflecting a phase of consolidation after recent advances.

Market participants noted that the Nifty moved largely between 25,680 and 25,820 through the session.

Analysts said the index successfully defended the key support zone of 25,650-25,700.

However, selling pressure emerged near the 25,800–25,850 range, limiting any sustained upside.

Experts added that a decisive breakout above this resistance could open the door for a move towards the 26,000 mark.

The IT sector exerted the heaviest drag on overall market performance. The Nifty IT index tumbled nearly 6 per cent, tracking a sharp decline in US-listed software stocks.

The fall followed the launch of a new productivity tool for in-house legal teams by AI startup Anthropic.

Investors fear that the rapid evolution of such AI-driven solutions could reduce demand for conventional software services and compress margins across the technology industry.

Among Sensex constituents, Infosys, Tata Consultancy Services, HCL Technologies, and Tech Mahindra featured prominently among the losers.

Select banking stocks, including Axis Bank and Kotak Mahindra Bank, also ended the day in negative territory.

In contrast, several non-IT stocks offered support to the benchmarks. Shares of Eternal, Trent, NTPC, Power Grid, and Adani Ports posted solid gains.

Broader market indices outperformed the frontline benchmarks, with the Nifty Midcap index rising 0.63 per cent and the Nifty Smallcap index advancing 1.27 per cent.

Sectorally, the Nifty Pharma index slipped 0.34 per cent, while the Nifty Consumer Durables index led gains with a jump of 2.6 per cent.

The Nifty Oil and Gas index followed, climbing 2 per cent.

Analysts said that although headline indices ended marginally higher, the steep decline in IT stocks kept overall sentiment cautious amid growing concerns over AI-led disruption in the technology sector.