**Market Brief: Wednesday, February 4, 2026** **Closing Snapshot** Indian equity benchmarks staged a smart recovery today, erasing early losses to finish marginally higher. Despite a severe rout in the technology sector, optimistic sentiment surrounding the new **India-US trade framework** helped cushion the broader market. **Key Indices** * **Nifty 50:** Closed at **25,776** (+48 points / +0.19%) * **Sensex:** Ended at **83,818** (+79 points / +0.09%) * **Bank Nifty:** Settled at **60,238** (+75 points) **Sectoral Divergence: IT Crash vs. Trade Deal Rally** The session was defined by a stark contrast between the IT sector and the rest of the market. * **IT Meltdown:** The Nifty IT index plunged over **5.5%**, marking its worst single-day fall since early 2020. Heavyweights **Infosys** (-8%), **TCS** (-6.5%), and **Tech Mahindra** (-6.4%) faced intense selling pressure following a **2.2%** drop in the US Nasdaq yesterday. Investors remain spooked by fears that new AI automation tools (like Anthropic’s latest release) could disrupt traditional software business models. * **Broad Recovery:** In contrast, domestic-focused sectors cheered the reduced tariff structure (down to **18%**) under the newly announced India-US trade pact. Buying interest was strong in **Auto**, **Energy**, **Metals**, and **Consumer Durables**. Top gainers included **Trent**, **Eternal**, and **NTPC**, which offset the tech drag. **Global & Geopolitical Cues** Market breadth remained positive despite lingering geopolitical caution. * **US Markets:** Wall Street saw a sharp rotation yesterday, with the tech-heavy Nasdaq shedding nearly **400 points** while the Dow Jones rose, signaling a shift from growth to value stocks. * **Geopolitics:** Investors are keeping a close watch on rising US-Iran tensions, which have kept crude oil prices volatile, though the trade deal optimism largely overshadowed these concerns today. **Institutional Activity** Foreign Institutional Investors (FIIs) remained net buyers in the previous session (purchasing **₹5,236 crore**), providing a crucial liquidity backstop that supported today's lower-level recovery.