Sensex drops 757 points as IT rout drags Nifty 2026

Benchmarks end lower after three-day rise

Domestic equity benchmarks BSE Sensex and NSE Nifty snapped a three-session winning run and ended in the red, with selling concentrated in information technology stocks. The pullback came even as markets tracked geopolitical headlines, including reports around the extension of the US-Iran ceasefire. By the close, the Sensex fell 756.84 points, or 0.95%, to 78,516.49. The Nifty declined 198.50 points, or 0.81%, to settle at 24,378.10. The move marked a clear reversal from the previous session’s risk-on tone.

How Tuesday’s optimism set up Wednesday’s reversal

A day earlier, both benchmarks had extended gains for a third consecutive session. The Sensex had jumped 753.03 points, or 0.96%, to 79,273.33, while the Nifty had climbed 211.75 points, or 0.87%, to 24,576.60. That upmove was supported by gains in FMCG and banking stocks amid optimism around US-Iran peace talks. But Wednesday’s trade showed that leadership was narrow and vulnerable to a sharp rotation, particularly against rate-sensitive and globally linked sectors.

IT stocks lead the selloff; HCL Tech hits the index hardest

The biggest drag on the Sensex came from heavy selling in large-cap IT names. HCL Technologies was the top loser among Sensex constituents, plunging 10.76% to Rs 1,286.50. Infosys fell 3.32%, while Mahindra & Mahindra declined 2.95%. Tata Consultancy Services slipped 2.83% and Tech Mahindra dropped 2.42%. HDFC Bank also eased 1.50%, adding to the pressure on the headline index.

Winners offered limited support on the Sensex

Gains were visible in a few pockets, but they were insufficient to offset the IT-led decline. Hindustan Unilever (HUL), NTPC and Eternal were among the gainers in the 30-stock index, rising up to 2.56%. Even with these advances, the day’s price action reflected a risk-off bias, with investors cutting exposure to the heaviest-weighted decliners.

Market breadth and sectoral cues: IT underperforms, banks steady

Sectoral performance reinforced the story of a technology-led pullback. The BSE IT index plunged 3.66% to close at 29,511.62, making it the worst-performing major sectoral index mentioned for the session. In contrast, banking showed relative resilience, with the BSE Bankex edging down 0.39% to 64,407.85. The split underscored that Wednesday’s decline was not evenly distributed across sectors, but driven by a concentrated sell-off.

Key contributors to the Sensex fall

Index-level declines were largely explained by a handful of heavyweights. Five stocks - HDFC Bank, HCL Tech, Infosys, ICICI Bank and M&M - contributed the most to the Sensex’s fall. This concentration matters because it can amplify index moves even when other constituents are stable or positive.

A quick data snapshot

Early trade signals: IT weakness persists ahead of RBI MPC

The weakness in IT was also evident in a separate early-trade update dated Feb 6, 2026. As of 9:48 am, the S&P BSE Sensex was down 216.98 points at 83,097.00, while the NSE Nifty50 was lower by 80.25 points at 25,562.55. Tata Consultancy Services was the sharpest laggard in that snapshot, down 2.15%, with Tech Mahindra down 1.66% and Infosys lower by 1.46%. The same update noted investors were awaiting the RBI’s MPC decision on the repo rate, adding a domestic policy watch factor alongside the global tech cues.

What strategists and analysts flagged about tech sentiment

Market commentary in the provided updates pointed to a global tech sell-off spilling into Indian IT. VK Vijayakumar said the Nifty was consolidating at the index level but churning sharply beneath the surface, led by a steep sell-off in IT stocks following weakness in US tech. He also said FIIs turning sellers in India and increasing short positions in derivatives indicated further weakness in the near term. Separately, in a Reuters report, Sorbh Gupta of Bajaj Finserv Asset Management said client tech budgets being redirected toward AI spending could create near-term headwinds for IT software and services firms.

Market impact: why this move mattered for investors

Wednesday’s decline showed that headline indices can turn quickly when sector leadership narrows to a few heavyweight names. With the BSE IT index down 3.66% and HCL Tech falling 10.76% in one session, IT became the primary source of downside momentum for the benchmarks. At the same time, the smaller decline in the BSE Bankex (down 0.39%) highlighted a divergence between global-exposed sectors and domestically anchored financials. Investors tracking the next moves will likely watch whether selling remains concentrated in IT or broadens, and how policy events like RBI MPC decisions interact with global risk sentiment.

Conclusion

The Sensex and Nifty ended lower after a three-day rise as IT stocks faced heavy selling, led by a sharp drop in HCL Technologies and a steep fall in the BSE IT index. Tuesday’s gains, supported by FMCG and banking, gave way to a rotation that exposed the market’s dependence on a few heavyweights for index direction. With updates also pointing to continued IT weakness in early trade on Feb 6 and attention on the RBI’s MPC decision, traders will be watching whether volatility stays sector-specific or spreads wider.