**Global Market Brief: February 4, 2026** **Market Overview** Global equities displayed a sharp divergence today, dominated by the fallout from a major "AI shock" in the technology sector and a landmark trade agreement between India and the United States. While Indian benchmarks managed to close in the green due to optimism surrounding the new trade deal, US and European markets faced headwinds from a massive sell-off in IT stocks, triggered by fears over AI profitability and new competition from Anthropic’s latest tool. **India: Trade Deal Optimism** Indian equity indices defied the global tech rout, ending modestly higher. The **BSE Sensex** gained **78.55 points** to close at **83,817.69**, while the **Nifty50** rose **48.45 points** to settle at **25,776.00**. Investor sentiment was buoyed by the official confirmation of the India-US trade pact, which lowers reciprocal tariffs on Indian exports to **18%**. This policy shift sparked a rally in export-oriented sectors, particularly textiles, gems, and pharmaceuticals. **Sector Performance** * **Top Gainers:** Retail and export stocks led the charge. **Trent** and **Eternal** surged approximately **5%** each. **NTPC**, **Adani Ports**, and **Power Grid** also posted gains between **2%** and **2.5%**. * **IT Crash:** The technology sector faced its worst single-day fall in six years. The Nifty IT index plunged nearly **6%**, dragged down by heavyweights like **Infosys** (down **7.26%**) and **TCS** (down **7.02%**). The sell-off mirrors a global trend where investors are reassessing the viability of heavy AI capital expenditure. **Currency & Commodities** The Indian Rupee weakened by **11 paise** to close at **90.43** against the US Dollar. Despite the positive trade news, increased dollar demand from importers erased early gains. * **Gold:** Prices continue to break records, trading near **$5,045** per ounce, driven by safe-haven buying amidst geopolitical tensions and economic uncertainty. * **Oil:** Brent crude remained volatile but steadied around **$67.60** per barrel, facing pressure from demand concerns despite supply adjustments. * **Crypto:** Bitcoin held firm around **$76,680**, while Ethereum dipped slightly to **$2,278**. **Global Sentiment** US markets remain under pressure as the "AI trade" unwinds. Wall Street indices closed sharply lower, with fears mounting that AI adoption may not yield immediate returns for major software firms. European markets were mixed, with the **STOXX 600** edging up **0.2%** as inflation in the Eurozone slowed to **1.7%**, strengthening the case for renewed rate cuts by the ECB. **Key Takeaway** The market is currently navigating a rotation from high-growth technology stocks to value and export-driven sectors. While the India-US trade deal provides a strong tailwind for the domestic economy, the global re-rating of AI stocks poses a significant short-term risk to volatility.