Mumbai: Indian equity markets closed almost flat on Wednesday, snapping a two-day rally, as a sharp fall in information technology (IT) stocks weighed on the benchmark indices.
Investor sentiment turned cautious after fresh concerns about advances in artificial intelligence (AI) hit global software stocks.
At the closing bell, the Nifty rose 48.45 points, or 0.19 per cent, to settle at 25,776.00. The Sensex gained 78.56 points, or 0.09 per cent, to end at 83,817.69.
Nifty traded in a tight range today, broadly between 25,680 and 25,820, indicating continued consolidation, according to experts.
“The index defended the 25,650–25,700 support zone, but faced supply near 25,800–25,850, where selling pressure capped the upside,” an analyst stated.
“A sustained breakout above this resistance could lead to further upside towards 26,000+,” an expert added.
The biggest drag on the market was the Nifty IT index, which plunged 6 per cent. The fall came after software stocks on Wall Street declined sharply.
The weakness followed the launch of a new productivity tool for in-house lawyers by AI startup Anthropic.
Investors fear that rapid development of such AI tools could reduce demand for traditional software services and hurt profitability across the IT industry.
Among the Sensex stocks, Infosys, TCS, HCLTech and Tech Mahindra were among the top losers. Banking stocks such as Axis Bank and Kotak Mahindra Bank also ended lower.
On the other hand, shares of Eternal, Trent, NTPC, Power Grid and Adani Ports were among the top gainers.
In the broader market, performance was relatively better. The Nifty MidCap index rose 0.63 per cent, while the Nifty SmallCap index gained 1.27 per cent.
Apart from IT, the Nifty Pharma index also ended slightly lower, down 0.34 per cent. On the positive side, the Nifty Consumer Durable index led the gains with a rise of 2.6 per cent, followed by the Nifty Oil and Gas index, which climbed 2 per cent.
Analysts said that while headline indices ended marginally higher, the sharp fall in IT stocks kept the market mood cautious amid growing concerns over the impact of AI-driven disruption on the technology sector.
(IANS)
