MUMBAI, India — Indian equity benchmarks ended nearly flat on Wednesday, snapping a two-day rally as a sharp selloff in information technology stocks offset gains elsewhere in the market.
Investor sentiment turned cautious amid fresh concerns over rapid advances in artificial intelligence, which weighed heavily on global software stocks and spilled over into domestic IT shares.
At the close, the Nifty rose 48.45 points, or 0.19 percent, to settle at 25,776.00, while the Sensex added 78.56 points, or 0.09 percent, to end at 83,817.69.
Market participants said the Nifty traded within a narrow range through the session, reflecting ongoing consolidation. The index largely moved between 25,680 and 25,820 during the day.
“The index defended the 25,650–25,700 support zone, but faced supply near 25,800–25,850, where selling pressure capped the upside,” an analyst said.
“A sustained breakout above this resistance could lead to further upside towards 26,000+,” another market expert added.
The biggest drag on the benchmarks came from the Nifty IT index, which slumped 6 percent after software stocks on Wall Street recorded steep losses.
The decline followed the launch of a new productivity tool for in-house lawyers by artificial intelligence startup Anthropic, raising concerns among investors that rapid AI adoption could reduce demand for traditional software services and pressure profitability across the IT sector.
Among Sensex constituents, Infosys, TCS, HCLTech, and Tech Mahindra were among the top losers. Banking stocks, including Axis Bank and Kotak Mahindra Bank, also ended lower.
Gains were seen in stocks such as Eternal, Trent, NTPC, Power Grid, and Adani Ports, which helped limit broader market losses.
The broader market outperformed the benchmarks, with the Nifty MidCap index rising 0.63 percent and the Nifty SmallCap index gaining 1.27 percent.
Sectorally, the Nifty Pharma index slipped 0.34 percent, while the Nifty Consumer Durables index led gains with a jump of 2.6 percent. The Nifty Oil and Gas index also advanced, climbing 2 percent.
Analysts said that despite marginal gains in the headline indices, the sharp decline in IT stocks kept market sentiment cautious, as investors weighed the potential impact of AI-driven disruption on the technology sector. (Source: IANS)
