The Indian equity market recovered from an early decline on Wednesday after opening on a weak note, supported by buying in auto and metal stocks, while selling pressure persisted in information technology shares.
On Wednesday, February 4, 2026, the domestic equity benchmarks opened lower amid visible profit-taking in early trade. However, strength in the auto and metal sectors helped the market regain ground and move into positive territory. In contrast, heavy selling in IT stocks continued to weigh on overall sentiment.
Investor sentiment remained cautious at the start of the session due to mixed cues from Asian markets. After a sharp rally over the previous two trading sessions, several investors opted to prioritise profit-booking, resulting in initial losses.
In the previous session on Tuesday, the domestic equity market recorded a sharp rally, marking its biggest single-day gain in more than eight months. During the session, the Sensex had surged by as much as 4,025 points, boosting investor sentiment.
Despite some profit-taking toward the close, the Sensex ended Tuesday’s session higher by 2,073 points, or about 2.5 percent, at 83,739. The Nifty also registered a b performance, rising 639 points, or around 2.5 percent, to close at 25,728.
Following this sharp advance, a near-term correction had been anticipated, which was reflected in Wednesday’s early trade.
On Wednesday, the 30-share BSE Sensex opened more than 400 points lower at 83,252.06. Selling pressure was evident in the initial minutes of trade but did not persist for long.
Buying interest soon emerged in auto and metal stocks, enabling the Sensex to recover swiftly. Around 9:33 am, the Sensex was trading higher by 99.46 points, or 0.12 percent, at 83,838.59, indicating continued buying interest at lower levels.
The NSE Nifty-50 also opened lower, trading around the 25,675 mark. Despite early pressure, the index managed to stabilise soon after the opening.
At around 9:34 am, the Nifty was up 56.15 points, or 0.22 percent, at 25,728. The index holding above the 25,700 level was viewed as an important signal for market stability.
Auto and metal stocks witnessed buying interest during the session, playing a key role in helping the market recover from early losses. Strength in these sectors offset, to a large extent, the impact of continued selling in IT stocks.
The IT sector remained under pressure, with heavy selling observed across IT shares. Weakness in global technology stocks and negative cues from overseas markets weighed on domestic IT companies, keeping sentiment subdued.
In global markets, major Wall Street indices closed lower on Tuesday as investors rotated out of technology stocks and increased allocations to other sectors linked to economic recovery. The Dow Jones ended down 0.34 percent, the S&P 500 declined 0.84 percent, and the Nasdaq fell 1.43 percent. The weakness in technology stocks impacted Asian markets and, in turn, domestic equities.
Asian markets traded with a mixed trend on Wednesday morning, with no clear directional cues. China’s CSI 300 index declined 0.29 percent, Hong Kong’s Hang Seng slipped 0.05 percent, and Japan’s Nikkei fell 0.61 percent. In contrast, South Korea’s Kospi was trading higher by 0.54 percent.
In the commodities market, gold and silver prices strengthened. Spot gold rose more than 1 percent to $5,002 per ounce, while spot silver gained 0.69 percent to trade at $85.70 per ounce.
On the macroeconomic front, investors were focused on key data releases scheduled for the day. Japan and India were set to release final composite and services PMI data for January from S&P Global and HSBC.
Attention also remained on corporate earnings, with several companies scheduled to announce their third-quarter results, including Bajaj Finserv, Tata Power Company, Apollo Tyres, Cummins India, Devyani International, Emami, Emcure Pharmaceuticals, Force Motors, Hexaware Technologies, Ivalue Infosolutions, JSW Cement, Kalpataru Projects International, Metropolis Healthcare, Apeejay Surrendra Park Hotels, TeamLease Services, Tube Investments of India, Trent, and Zuari Agro Chemicals.
In addition, the market was tracking results from Bajaj Finance, One MobiKwik Systems, Aarti Drugs, and other companies that were released on Tuesday.
