Market extend gains for 3rd day; IT shares tanks; VIX slumps 4.98%

The key equity benchmarks ended with small gains today, extending gains for a third consecutive session after initial intraday weakness was absorbed by robust buying. Investor sentiment was underpinned by the landmark India-US trade agreement, which reduced external uncertainty and bolstered confidence in near-term economic and corporate growth prospects. Market recovery also reflects tactical buying by funds anticipating positive spillovers from trade and policy developments.

The Nifty settled above the 25,750 mark. IT and pharma shares declined while consumer durables, oil & gas and metal shares advanced.

As per provisional closing data, the barometer index, the S&P BSE Sensex, added 78.56 points or 0.09% to 83,817.69. The Nifty 50 index rose 48.45 points or 0.19% to 25,776. In three consecutive trading sessions, the Sensex added 3.83% while the Nifty jumped 3.82%.

 

The broader market outperformed the frontline indices. The BSE 150 MidCap Index advanced 0.61% and the BSE 250 SmallCap Index rose 0.54%.

The market breadth was strong. On the BSE, 2,639 shares rose and 1,493 shares fell. A total of 173 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 4.98% to 12.25.

RBI MPC:

The Reserve Bank's rate-setting panel has started its three-day meeting for the next bi-monthly monetary policy, against the backdrop of the growth-focused Union Budget, low inflation, and the recently concluded India-US trade deal, which ended prolonged external uncertainty.

The decision of the RBI Governor Sanjay Malhotra-headed six-member Monetary Policy Committee (MPC) is scheduled to be announced on Friday.

Economy:

The seasonally adjusted HSBC India Services PMI rose to 58.5 in January from 58.0 in December. The flash score was 59.3. A score above 50.0 indicates expansion.

Both output and new orders grew at faster rates in January, and the upturn in the latter was driven by demand buoyancy, new business gains, and tech investment.

The growth in sales was attributed to greater client interest in their services and a stronger online presence. New export orders grew at the fastest pace in three months, linked to new business gains from clients in Indonesia, Kenya, Malaysia, Oman, Qatar, Sri Lanka, Thailand, and Vietnam.

In line with rising new orders, Indian service providers resumed hiring activity in January, though the pace of job creation was only marginal.

On the price front, input price inflation accelerated to a 4-month high in January, and selling price inflation was the strongest in three months.

Looking ahead, business confidence strengthened amid optimistic forecasts for efficiency gains, marketing efforts, and new client wins.

The composite output index rose to 58.4 in January from December's 11-month low of 57.8, indicating that the latest sharp rate of expansion in the Indian private sector was boosted by stronger growth at goods producers as well as service providers.

Buzzing Index:

The Nifty IT index tanked 5.87% to 36,345.65. The index rallied 1.41% in the previous trading session.

IT stocks came under sharp pressure on Wednesday amid a global technology selloff after AI firm Anthropic unveiled new automation tools, stoking fears of AI-led disruption to traditional, licence-driven business models.

Infosys (down 7.37%), Tata Consultancy Services (down 6.99%), Coforge (down 6.02%), LTIMindtree (down 5.84%) and Persistent Systems (down 4.76%), HCL Technologies (down 4.62%), Mphasis (down 4.59%), Tech Mahindra (down 4.52%), Oracle Financial Services Software (down 4.06%) and Wipro (down 3.79%) declined.

Stocks in Spotlight:

Teamlease Services rallied 3.24% after the companys consolidated net profit climbed 46.75% to Rs 41.72 crore on 3.14% jump in revenue from operations to Rs 3,012.95 crore in Q3 FY26 over Q3 FY25.

Bajaj Finserv (BFS) rose 0.21%. The company reported a 0.08% rise in consolidated net profit to Rs 2,229.15 crore on 29.93% jump in revenue from operations to Rs 39,708.06 crore in Q3 FY26 over Q3 FY25.

Rubicon Research rallied 6.13% after the companys consolidated net profit climbed 91.2% to Rs 72.79 crore on 51.73% increase in revenue from operations to Rs 475.52 crore in Q3 FY26 over Q3 FY25.

Bajaj Finance shed 0.08%. The company reported a 6% decline in consolidated net profit to Rs 3,977.85 crore despite 17.63% jump in total revenue from operations to Rs 21,213.89 crore in Q3 FY26 over Q3 FY25.

Kansai Nerolac Paints tanked 2.81% after its standalone net profit tanked 75.08% to Rs 131.20 crore in Q3 FY26, compared with Rs 526.49 crore in Q3 FY25. However, revenue from operations rose 3.53% to Rs 1,907.35 crore in Q3 FY26 as against Rs 1,842.16 crore posted in the same quarter last year.

Sheela Foam surged 13.93% after the companys consolidated net profit soared 211.97% to Rs 52.13 crore on 11.1% jump in revenue from operations to Rs 1,074.43 crore in Q3 FY26 over Q3 FY25.

ADF Foods surged 10.03% after the company reported 55.7% jump in consolidated net profit to Rs 29.2 crore on a 29.5% increase in revenue from operations to Rs 191 crore in Q3 FY26 as compared with Q3 FY25.

The Anup Engineering dropped 6.34% after the companys consolidated net profit declined 15.5% year-on-year to Rs 25.53 crore in Q3 FY26, compared with Rs 30.21 crore posted in Q3 FY25. However, revenue from operations rose 20.5% YoY to Rs 206.92 crore during the quarter ended 31 December 2025, as against Rs 171.74 crore in the corresponding quarter last year.

Century Plyboards (India) declined 5% after the companys consolidated net profit fell 8.37% to Rs 65.05 crore on a 2.57% drop in total income to Rs 495.53 crore in Q3 FY26 over Q2 FY26. On a year-on-year basis, the companys net profit and revenue rose 10.55%, while total income increased 18.29% in Q3 FY26.

Emami advanced 2.57% after the company reported 14.5% increase in consolidated to Rs 319.48 crore on a 9.8% rise in revenue from operations to Rs 1,151.81 crore in Q3 FY26 as compared with Q3 FY25.

RITES added 0.54%. The company reported 5.2% rise in consolidated to Rs 115.10 crore on a 5.7% increase in revenue from operations to Rs 608.59 crore in Q3 FY26 as compared with Q3 FY25. The companys board has declared third interim dividend of Rs 1.90 per share for the financial year 2025-26.

Global Markets:

European stocks traded higher on Wednesday as investors digested more quarterly earnings ahead of the release of keenly anticipated regional inflation data.

Asian markets ended higher, breaking ranks with Wall Street after a sell-off in U.S. technology stocks weighed on sentiment, while gold extended gains for a second day.

Overnight in the U.S., the S&P 500 pulled back as investors dumped technology stocks and moved into shares more broadly linked to improvements in the economy.

The broad market index fell 0.84% and closed at 6,917.81. The Dow Jones Industrial Average dipped 166.67 points, or 0.34%, to end at 49,240.99. Earlier, the 30-stock index rose as much as 0.5% to touch 49,653.13, a new record. The Nasdaq Composite shed 1.43%, settling at 23,255.19.

Powered by Capital Market - Live News