Indian equity markets ended the day almost unchanged on Wednesday, halting a two-day upward trend, primarily due to a significant drop in information technology (IT) stocks. Investor confidence wavered following global concerns about advancements in artificial intelligence impacting software stocks. The Nifty closed up by 0.19% at 25,776.00, while the Sensex rose by 0.09% to finish at 83,817.69.
Market experts noted that the Nifty traded within a narrow range between 25,680 and 25,820, signaling ongoing consolidation. Analysts observed that the index faced resistance near 25,800–25,850, limiting its upward movement but defended the support zone of 25,650–25,700.
The Nifty IT index witnessed a sharp decline of 6%, becoming a major drag on the market. This fall was triggered by a drop in software stocks on Wall Street, following the introduction of a new productivity tool for in-house lawyers by AI startup Anthropic. Concerns arose among investors regarding the potential impact of AI tools on traditional software services and the profitability of the IT sector.
Notable losers among Sensex stocks included Infosys, TCS, HCLTech, Tech Mahindra, as well as banking giants like Axis Bank and Kotak Mahindra Bank. Conversely, top gainers comprised Eternal, Trent, NTPC, Power Grid, and Adani Ports. In the broader market, the Nifty MidCap index rose by 0.63%, while the Nifty SmallCap index saw a gain of 1.27%.
Despite marginal gains in headline indices, the sharp decline in IT stocks kept market sentiment cautious due to mounting apprehensions about the disruptive impact of AI on the technology industry.
