The BSE Sensex dropped over 400 points, dropping to the day’s low of 83,369, while the Nifty 50 declined over 100 points to slip below 25,650.
On the 30-stock Sensex, BEL, Indigo, L&T, Tata Steel, Axis Bank, and Sun Pharma declined in the range of 1-2.5%. On the gainers side, FMCG bellwether Hindustan Unilever rose over a percent, while Trent, Infosys, TCS, and SBI rose 0.5% each. Reliance Industries was down 0.6%.
The Nifty Smallcap 100 index tanked 1%, while the Midcap 100 was down 0.5%.
Expert Views
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the Nifty is currently moving through a consolidation phase, with limited movement at the index level but sharp divergence within sectors. He noted that IT stocks have seen steep declines following the recent selloff in U.S. tech, triggered by concerns that new automation tools from Anthropic could disrupt outsourced IT services and potentially pressure margins for Indian IT companies. However, he added that the actual long-term impact is still uncertain.
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He added that India’s growth outlook remains strong following the growth-focused Budget and trade agreements with the EU and the U.S., which should support domestic consumption trends.
According to him, a key trigger to watch is foreign institutional investor flows — if FII selling slows and marginal buying picks up, broader market strength could follow.FII/DII Tracker
Foreign investors extended their buying streak to two days, purchasing Rs 30 crore on February 4. On the flipside, DIIs bought nearly Rs 250 crore, official data from the NSE showed.
FIIs staged a strong comeback in Indian equities on Tuesday, snapping a prolonged selling streak after the India–US trade deal helped remove a major overhang on markets. Foreign institutional investors (FIIs) were net buyers to the tune of Rs 5,236 crore, as per provisional NSE data, marking the highest single-day inflow since October 28.
Global Markets
U.S. markets ended lower on Wednesday, weighed down by declines in technology heavyweights such as Advanced Micro Devices and Palantir, as investors grew cautious about elevated valuations and the sustainability of the ongoing AI-driven rally. The S&P 500 slipped 0.51% to close at 6,882.72, while the Nasdaq fell 1.51% to 22,904.58. In contrast, the Dow Jones Industrial Average gained 0.53% to finish at 49,501.30.
Asian equities followed Wall Street’s weak tech sentiment, with concerns over rising AI investment costs pressuring regional markets. MSCI’s broadest index of Asia-Pacific shares outside Japan fell about 1%, while South Korea’s KOSPI dropped 1.7% and Taiwan’s benchmark declined 0.7%. Japan’s Nikkei traded largely flat during the session.
Chinese markets also remained under pressure, with the CSI300 index losing 0.7% and Hong Kong’s Hang Seng slipping 0.8%. Despite the broader weakness, Wall Street futures attempted a mild rebound, supported by gains in chip-related stocks.
Crude Impact
Oil prices declined on Thursday after posting gains in the previous two sessions, as news that the U.S. and Iran would hold talks in Oman on Friday eased some geopolitical concerns despite ongoing disagreements over the agenda.
U.S. West Texas Intermediate crude fell 1.4% to $64.23 per barrel, while Brent crude futures also slipped 1.4% to $68.47 per barrel.
Rupee vs Dollar
The Indian rupee opened 0.1% lower at 90.5150 against the U.S. dollar on Thursday, compared with its previous close of 90.4350.
(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)