Mumbai, February 4: Indian stock markets experienced slight gains on Wednesday morning, with all sectors showing an uptick. However, this growth was limited due to a decline in IT shares.
Following Anthropic’s announcement of a legal tool for its cloud AI chatbot, Indian IT stocks faced downward pressure amid increasing competition and shrinking margins, reflecting negative signals from Wall Street.
By 9:25 AM, the Sensex rose by 44 points or 0.05% to reach 83,783, while the Nifty closed up 51 points or 0.20% at 25,778.
The main broad-cap index saw modest gains, with the Nifty Midcap 100 increasing by 0.04% and the Nifty Smallcap 100 by 0.01%.
All major sectoral indices were in the green except for IT and Realty, which fell by 5.39% and 0.58%, respectively. Nifty Auto, Metal, Consumer Durables, and Oil & Gas were the top gainers, rising by 1.12%, 1.38%, 1.05%, and 1.77%, respectively.
Market experts indicated that immediate support for the Nifty is at the 25,550-25,600 zone, while resistance is seen at 25,850-25,900.
Analysts predict that obstacles may hinder the rally initiated by the US-India trade deal, especially after a sell-off in US IT stocks on Tuesday, which could impact the Indian IT index negatively.
India serves as a significant software service provider for many American companies. Following the new Anthropic AI launch, software stocks on Wall Street saw declines of up to 25%.
Experts noted that valuations remain high across most sectors, indicating a lack of fundamental support for sustained bullish trends. The monetary policy meeting scheduled for February 6 is expected to maintain current rates without changes.
The gains observed on Thursday were primarily attributed to FII short covering. Sectors such as textiles, gems and jewelry, and marine processing, which are expected to benefit from exports to the US, may see further price action.
In Asian markets, China’s Shanghai index remained flat, while Shenzhen fell by 0.88%. Japan’s Nikkei dropped by 0.6%, and Hong Kong’s Hang Seng index decreased by 0.73%. South Korea’s KOSPI, however, rose by 0.72%.
In the previous trading session, US markets mostly closed in positive territory, although the Nasdaq fell by 1.43%. The S&P 500 dropped by 0.84%, and the Dow Jones decreased by 0.34%.
On February 3, foreign institutional investors purchased equity shares worth ₹5,236 crore, while domestic institutional investors bought shares worth ₹1,014 crore.
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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