MUMBAI, India — Indian equity markets closed almost flat on Wednesday, bringing an end to a two-day rally, as a sharp selloff in information technology stocks weighed on benchmark indices and kept investor sentiment cautious.
At the close of trade, the Nifty rose 48.45 points, or 0.19 percent, to settle at 25,776.00, while the Sensex gained 78.56 points, or 0.09 percent, to end at 83,817.69.
Markets traded in a narrow range through the session, with the Nifty largely confined between 25,680 and 25,820, reflecting continued consolidation. Analysts said the index held firm near the 25,650–25,700 support zone but faced selling pressure around the 25,800–25,850 levels, which capped further gains. A sustained move above this resistance could open the door for an advance toward the 26,000 mark, they added.
The biggest drag on the market came from the IT sector, with the Nifty IT index plunging about 6 percent. The decline followed a sharp selloff in global software stocks after renewed concerns about rapid advances in artificial intelligence.
Investor unease intensified after an AI startup launched a new productivity tool aimed at in-house legal teams, fueling fears that accelerating AI adoption could reduce demand for traditional software services and pressure margins across the IT industry.
Among Sensex constituents, Infosys, TCS, HCLTech and Tech Mahindra were among the top losers. Banking stocks such as Axis Bank and Kotak Mahindra Bank also ended the session in the red.
Gains elsewhere helped limit overall losses. Shares of Eternal, Trent, NTPC, Power Grid and Adani Ports were among the top performers on the Sensex.
The broader market outperformed the benchmarks. The Nifty MidCap index rose 0.63 percent, while the Nifty SmallCap index gained 1.27 percent.
Sectorally, pharma stocks also edged lower, with the Nifty Pharma index down 0.34 percent. On the upside, the Nifty Consumer Durables index led gains with a jump of 2.6 percent, followed by the Nifty Oil and Gas index, which climbed 2 percent.
Analysts said that while headline indices managed modest gains, the steep decline in IT stocks kept the overall market mood guarded, amid growing concerns over AI-driven disruption in the technology sector. (Source: IANS)
