By the close, the Sensex rose 78 points, or 0.09%, to settle at 83,818, while the Nifty gained 48 points, or 0.2%, to finish at 25,776. On the BSE, 2,712 stocks advanced, 1,490 declined, and 164 remained unchanged.
Shares of IT companies were battered on Dalal Street on Wednesday, with the Nifty IT index plunging as much as 7%, with nearly Rs 2 lakh crore in market value being wiped out. This marked the sector’s worst single-day fall since the March 2020 Covid-19 crash.
The broader market, represented by the Nifty Midcap and Smallcap 100 indices, ended 0.56% and 1.22%, respectively.
Expert view
“Domestic equities witnessed a volatile session, swinging between gains and losses as rising US–Iran tensions kept investors on edge. Mid‑cap and small‑cap stocks outperformed large caps as value buying emerged following a recent correction,” Vinod Nair, Head of Research at Geojit Investments Ltd, said.
Sectoral buying was visible in consumer durables, oil & gas, metals, and auto sectors. However, overall upside remained limited due to weakness in IT stocks amid concerns over reduced demand for traditional outsourcing following Anthropic’s introduction of new AI‑driven automation tools. Going forward, market sentiment will largely be guided by the upcoming RBI policy decision and greater clarity on the newly announced US–India trade agreement, he added.
Global MarketsEuropean shares traded largely muted on Wednesday, as steep losses in Novo Nordisk capped gains in energy stocks while investors tracked software names and awaited a key inflation reading.
The pan-European STOXX 600 was little changed at 618.26 points as of 0812 GMT. Healthcare stocks led declines, falling 1.9%, after Novo Nordisk plunged 18.7%. The weight-loss drug maker said it expects both sales and operating profit in 2026 to decline year on year amid intensifying competition in the obesity treatment market. The slump dragged Denmark’s benchmark index down 7.8%, putting it on course for its steepest daily fall since July 2025.
Energy stocks rose 1.3%, supported by firmer crude prices as geopolitical tensions between the United States and Iran escalated, helping cushion broader market losses.
Technology and media stocks slipped 0.3% and 0.5%, respectively, extending declines from the previous session after Anthropic’s launch of new AI plug-ins reignited concerns over potential disruption across global software companies.
Investors also remained cautious ahead of January eurozone inflation data due later in the day. Economists polled by Reuters expect inflation to come in at 1.7%, below the European Central Bank’s 2% target, signalling easing price pressures.
Crude impact
Oil prices extended gains on Wednesday after the U.S. shot down an Iranian drone and armed Iranian boats approached a U.S.-flagged vessel in the Strait of Hormuz, reigniting fears of escalating tensions between Washington and Tehran.
Brent crude futures rose 15 cents, or 0.2%, to $67.48 per barrel at 0730 GMT, while U.S. West Texas Intermediate crude gained 28 cents, or 0.4%, to $63.49 per barrel. Both benchmarks had climbed nearly 2% in the previous session as the military incidents heightened concerns that any escalation could disrupt oil flows through the strategic waterway or impact Iranian supply.
Rupee vs Dollar
The Indian rupee ended 0.2% lower at 90.4350 per US dollar on Wednesday, after closing at 90.2650 in the previous session — its best single-day performance since December 2018.
(with inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)