**Market Brief: February 4, 2026** **Closing Snapshot** Indian equity benchmarks ended a volatile session on a flat note, pausing after the previous day's massive rally. While optimism surrounding the recent **India-US trade deal** provided underlying support, a sharp sell-off in technology stocks capped gains. **Key Indices** * **Nifty 50:** Closed at **25,776**, up **48.45 points** (+0.19%). * **BSE Sensex:** Ended at **83,817.69**, rising **78.56 points** (+0.09%). * **Market Breadth:** Remained positive, with broader midcap and smallcap indices outperforming large-caps. **Sectoral Trends & Movers** The session witnessed a clear divergence between sectors: * **IT Meltdown:** The Nifty IT index plunged nearly **6%**, dragging the market. Heavyweights **Infosys**, **TCS**, and **Wipro** fell between **4% and 7%**. Sentiment soured after US-based AI startup Anthropic launched a new automated legal tool, sparking fears that advanced AI could disrupt traditional software services revenue. * **Gainers:** Energy and Infrastructure stocks cushioned the fall. **Trent**, **ONGC**, **NTPC**, and **Adani Ports** were among the top performers, gaining between **2% and 5%**. * **FMCG & Pharma:** Showed resilience, trading in the green as investors sought defensive bets amidst tech volatility. **Institutional Activity** Foreign and domestic flows moderated significantly compared to the previous session's aggressive buying: * **FIIs:** Net buyers of approximately **₹30 crore**. * **DIIs:** Net buyers of approximately **₹250 crore**. **Currency & Global Cues** * **Rupee:** Weakened by **11 paise** to close at **90.43** against the US Dollar, tracking losses in Asian currencies. * **Global Markets:** Asian indices were mixed, following a weak handover from Wall Street where tech stocks faced heavy profit-booking. **Outlook** The market remains in a consolidation zone. While the **India-US trade agreement** (reducing tariffs to 18%) continues to boost long-term sentiment for export-oriented sectors like textiles and manufacturing, near-term direction will likely be dictated by global tech valuations and the upcoming RBI policy stance.