Sensex Starts the Day on a Recovery

India’s BSE Sensex rose about 0.6% to 82,695 in morning trade on Wednesday, stabilizing after Tuesday’s sharp sell-off, as most sectors, led by technology, moved into positive territory. The index tracked a rebound in US equities, driven by strength in technology and software shares, where renewed enthusiasm for AI-related companies has lifted broader market sentiment, helping tech indexes regain earlier losses. Among individual stocks, early gainers included Aditya Infotech (+8.6%), Vedanta (+3.5%), Steel Authority of India (+2.5%), Tata Consultancy Services (+2.3%), and Infosys (+2.2%). In other developments, the Reserve Bank of India highlighted India’s robust and improving economic trajectory, pointing to steady growth momentum and favorable conditions for investors and businesses.

India's BSE Sensex finished about 1.2% down at 82,320 on Tuesday, the lowest since early February, halting two straight sessions of gains. Losses were broad-based, led by IT stocks amid lingering global concerns over AI-driven disruption. US-based AI firm Anthropic recently launched powerful tools automating coding, documentation, and data, services traditionally handled by Indian IT firms. Autos and banks also faced pressure amid renewed uncertainty around US tariff policy alongside geopolitical risks. In the meantime, foreign investors have been returning to Indian equities over the past few weeks, but they are favoring sectors linked to domestic growth. Among top losers, Tech Mahindra fell 6.3% and HCL Technologies dropped 5.8%, while Infosys and TCS slipped 3.6% and 3.5%, respectively. HDFC Bank (-1.3%), ICICI Bank (-1%), and Axis Bank (-0.2%) all declined. On the upside, NTPC rose 2.1% and Hindustan Unilever 0.9%, indicating rotation into defensives and select cyclicals.

The SENSEX Index decreased -975 points or 1.17 percent on Tuesday to close at 82320 points. The decline was led by Tech Mahindra (-6.30%), HCL Tech (-5.83%) and Eternal Limited (-4.76%).