Mumbai, February 4, 2026 – Indian equity benchmarks experienced a downturn today, with the Sensex falling approximately 300 points and the Nifty testing the 25,700 level. The Nifty IT sector particularly suffered, dropping over 5%.
The BSE Sensex was down by 311.88 points, a 0.37% decrease, settling at 83,666.62. Simultaneously, the NSE Nifty50 slipped by 102.05 points, or 0.4%, to reach 25,661.30. Broader market indices also reflected this pressure, although some mid- and small-cap counters remained steady.
This cautious market sentiment is attributed to several factors, including weak global cues, continuous selling by Foreign Institutional Investors (FII), and profit-booking across various key sectors. Investors appear to be taking a more conservative stance following muted corporate earnings reports and overall weakness in global markets, especially after a significant rally in October.
Concerns over renewed US tariff uncertainties and persistent foreign institutional investor outflows have further contributed to the negative market sentiment.
Sectoral Performance: The IT sector was the most affected, with the Nifty IT index dropping significantly. Realty and auto shares also experienced declines. Conversely, some sectors showed resilience, with metal, PSU bank, and oil & gas shares advancing.
Market Breadth: Overall market breadth was negative, with more stocks declining than advancing. On the Bombay Stock Exchange (BSE), 2,016 shares rose, while 2,147 shares fell.
Global Influences: The Indian market mirrored a broader global trend of caution, influenced by international cues and economic data. Investors are closely monitoring global developments, including geopolitical factors and trade deals, which are expected to play a crucial role in shaping market dynamics.
Trading Suspended: It is important to note that trading on Indian stock exchanges will be suspended on Thursday, January 15, 2026, due to the Maharashtra municipal corporation elections. Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will be closed.
In summary, Indian equity markets experienced a downturn today, influenced by a combination of global and domestic factors. Investors are advised to stay informed on market developments and exercise caution in their trading decisions.