{"id":75596,"date":"2026-02-04T03:54:39","date_gmt":"2026-02-04T06:54:39","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/889224122"},"modified":"2026-02-04T03:54:39","modified_gmt":"2026-02-04T06:54:39","slug":"markets-open-cautiously-after-strong-rally-it-stocks-drag-on-global-tech-selloff","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/04\/markets-open-cautiously-after-strong-rally-it-stocks-drag-on-global-tech-selloff\/","title":{"rendered":"Markets open cautiously after strong rally; IT stocks drag on global tech selloff"},"content":{"rendered":"
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Benchmark indices<\/a> opened cautiously on Wednesday morning after the previous session\u2019s strong rally, with IT stocks dragging following a sharp selloff in technology shares on Wall Street amid concerns over artificial intelligence competition. <\/p>\n

The Sensex<\/a> opened at \u20b983,252.06 against the previous close of \u20b983,739.13 and was trading at \u20b983,868.64, up 129.51 points or 0.15 per cent at 9.45 am. The Nifty<\/a> opened at \u20b925,675.05 compared to the previous close of \u20b925,727.55 and was trading at \u20b925,790.35, up 62.80 points or 0.24 per cent. <\/p>\n

\u201cAI Anxiety Hits Wall Street: Wall Street ended sharply lower on Tuesday as investors worried that AI could create more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week,\u201d said Devarsh Vakil, Head of Prime Research, HDFC Securities. \u201cThe tech-heavy Nasdaq fell 1.4 per cent as software stocks extended losses, Anthropic\u2019s launch of workplace productivity tools intensified worries, with the sector shedding approximately $300 billion in market value.\u201d <\/p>\n

IT stocks bore the brunt of the selloff with Infosys<\/a> falling 5.97 per cent to \u20b91,557.10, TCS<\/a> declining 5.23 per cent to \u20b93,056.60, HCL Technologies<\/a> down 4.63 per cent at \u20b91,616.80, Tech Mahindra<\/a> losing 4.37 per cent to \u20b91,641.50, and Wipro<\/a> dropping 3.70 per cent to \u20b9233.70. <\/p>\n

Among the gainers, ONGC<\/a> led with a surge of 4.01 per cent to \u20b9267.30, Coal India<\/a> rose 2.34 per cent to \u20b9439.45, Mahindra & Mahindra<\/a> gained 2.28 per cent to \u20b93,608.20, NTPC<\/a> advanced 2.22 per cent to \u20b9366.50, and Jio Financial Services<\/a> climbed 1.99 per cent to \u20b9269.15. <\/p>\n

\u201cThe rally fuelled by the US-India trade deal will face hurdles to sustain. The IT selloff in the US yesterday will drag the Indian IT index, too, constraining the rally in the Indian market,\u201d said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. \u201cSince valuations continue to be high there is no fundamental support for a sustained rally.\u201d <\/p>\n

On Tuesday, benchmark indices witnessed a strong rally with the Nifty ending 639 points higher at 25,727 while the Sensex surged 2,073 points to close at 83,729, driven by optimism over the India-US trade deal. <\/p>\n

\u201cIndian equity markets continue to draw support from positive progress in India\u2013US trade discussions, which remains the key sentiment driver,\u201d said Ponmudi R, CEO of Enrich Money. \u201cAfter the strong multi-day rally, some profit-booking and range-bound action cannot be ruled out.\u201d <\/p>\n

Shrikant Chouhan, Head \u2013 Equity Research at Kotak Securities, noted that \u201cthe short-term market outlook remains positive, but a strategy of buying on dips and selling on rallies would be ideal for traders.\u201d <\/p>\n

On the institutional front, foreign institutional investors turned net buyers on February 3, purchasing equities worth \u20b95,236 crore after remaining net sellers for the previous two sessions. Domestic institutional investors extended their buying streak for a second consecutive day, investing over \u20b91,000 crore. <\/p>\n

Crude oil<\/a> futures traded higher on Wednesday morning as tensions re-emerged between the US and Iran. February crude oil futures were trading at \u20b95,785 on Multi Commodity Exchange against the previous close of \u20b95,709, up by 1.33 per cent, and March futures were trading at \u20b95,770 against the previous close of \u20b95,696, up by 1.30 per cent. <\/p>\n

\u201cGiven persistent global uncertainties and elevated volatility, traders are advised to remain selective and disciplined, focusing on fundamentally strong stocks during market declines,\u201d said Aakash Shah, Technical Research Analyst at Choice Equity Broking Private Limited. <\/p>\n