4 February 2026 (Mid-cap): Nifty Extends Gains Despite IT Rout; Energy, Infra and Autos Power Market Higher

Indian equity markets strengthened through the afternoon session on Wednesday, 04 February 2026, with the Nifty 50 holding firm above the 25,700 mark despite a sharp and broad-based sell-off in IT stocks. The benchmark index was trading at 25,721.35, up 34.55 points or 0.13%, as strong buying in energy, infrastructure, consumption, and automobile stocks helped offset weakness in technology heavyweights.

The Nifty opened at 25,675.05, touched an intraday high of 25,801.80, and slipped to a low of 25,563.95, indicating a volatile but positive trading session driven by clear sectoral rotation.

Also Read: 4 February 2026: IT Stocks Sink, Energy and Metals Shine as Nifty Trades Flat in Early Session

Benchmark Indices: Broad-Based Strength in Financials and Broader Markets

Overall market sentiment remained constructive, with multiple indices trading in the green:

• Nifty 50: Up 0.13% at 25,721.35

• Nifty Next 50: Gained 0.36% to 69,095.30

• Nifty Financial Services: Rose 0.62% to 27,844.80

• Nifty Bank: Advanced 0.36% to 60,258.75

The performance suggests steady participation from both frontline and broader market stocks, supported mainly by financials, energy, and infrastructure-related counters.

Top Losers: IT Stocks See Heavy, Broad-Based Selling

The IT sector remained under intense pressure, emerging as the biggest drag on the market. All major IT heavyweights witnessed sharp cuts, accompanied by strong trading volumes:

• Infosys fell 6.00% to ₹1,556.70

• HCL Technologies declined 5.73% to ₹1,598.20

• Tech Mahindra dropped 5.72% to ₹1,618.30

• TCS slipped 5.66% to ₹3,042.80

• Wipro lost 4.33% to ₹232.17

The synchronized fall across IT majors points to sector-wide concerns, possibly linked to global demand outlook, currency movements, or cautious earnings expectations. High volumes in stocks like Infosys, TCS, and Wipro indicate strong institutional selling pressure.

Top Gainers: Eternal, ONGC, Trent, Maruti, Power Grid Lead the Rally

On the positive side, strong buying interest was visible in select large-cap and high-volume stocks:

• Eternal surged 4.07% to ₹291.20, backed by exceptionally high volumes, making it one of the most actively traded stocks of the session.

• ONGC gained 4.03% to ₹267.35, reflecting strength in the energy space and improving sentiment in commodity-linked stocks.

• Trent rose 3.99% to ₹3,975.40, continuing the strong momentum in retail and consumption-driven themes.

• Maruti Suzuki advanced 2.05% to ₹15,085.00, indicating sustained optimism in the automobile sector.

• Power Grid climbed 2.03% to ₹288.95, highlighting steady interest in defensive and infrastructure plays.

These stocks provided crucial support to the benchmark, helping the Nifty remain in positive territory despite the sharp IT sell-off.

Sectoral Trend: Clear Rotation Away from IT

The day’s trade clearly reflects a sectoral rotation in the market. While investors aggressively trimmed positions in IT stocks, funds appeared to be moving into:

• Energy and PSU stocks (ONGC, Power Grid)

• Consumption and retail plays (Trent)

• Automobiles (Maruti)

• High-volume momentum stocks (Eternal)

Meanwhile, financials and broader indices continued to show stability, reinforcing the view that the overall market structure remains intact even as leadership shifts between sectors.

Market View: Volatility with Stock-Specific Opportunities

With IT under pressure and cyclical as well as defensive stocks gaining traction, the market is likely to remain volatile but selective in the near term. Traders and investors are expected to stay focused on sector-specific cues, global market trends, currency movements, and corporate earnings updates.

As long as buying interest in non-IT sectors remains strong, the broader market may continue to show resilience despite pockets of sharp correction.

Conclusion: 4 February 2026

The trading session on 04 February 2026 highlights a divided market: sharp weakness in IT stocks on one side, and strong buying in energy, infrastructure, auto, and consumption stocks on the other. While the IT sector continues to act as a drag, the Nifty’s ability to hold gains near record levels underscores the underlying strength and ongoing sectoral rotation in Indian equities. In the near term, market direction is likely to be driven more by stock and sector selection than by broad-based index moves.