Stock Market Today: Sensex at 72,500 and Nifty 50 Below 22,100

Sensex and Nifty end mixed, investors track trade deal and inflation data

The Indian stock market trades with high volatility on February 4, 2026. The Nifty 50 and Sensex move lower after strong gains in the previous session. Investors book profits while reacting to mixed global and domestic news. 

Optimism from the new India–US trade agreement supports sentiment, but weakness in global technology stocks creates pressure. Trading remains cautious as market participants balance positive economic signals with risks coming from overseas markets.

Market breadth stays mixed during the session. A few heavyweight stocks support the indices, while several mid and small-cap stocks witness selling pressure.  The overall mood remains uncertain, and prices swing sharply during intraday trade. 

Impact of Global Technology Sell-Off

The information technology sector faces strong selling pressure. Global technology stocks fall due to fears related to rapid changes in artificial intelligence tools and concerns over future earnings stability. Large IT exporters remain under pressure as investors worry about slower global demand and higher competition from automation.

As IT stocks carry heavy weight in benchmark indices, their fall drags the Nifty and Sensex lower. The sector becomes the main reason for limited upside in the market, even as other sectors try to recover. Traders avoid fresh buying in technology shares until clearer signals emerge from global markets. The IT pack remains the weakest performer of the day.

Foreign and Domestic Investment Flows

Foreign institutional investors continue to influence market direction. Provisional exchange data from February 3 shows net buying by foreign investors in the cash market. Domestic institutional investors who maintain their investment activities create price stability through their operations. These flows indicate that investors maintain their trust in the Indian economy. Fund managers practice selective buying methods instead of investing in the entire market. 

The market experiences capital shifts, which benefit banking and infrastructure stocks, owing to expected trade relation improvements and ongoing economic stability. 

Macro and Policy Environment

Current macroeconomic conditions create an environment that supports financial growth. The central bank maintains its current interest rate level after implementing interest rate reductions during 2025. 

The economy shows stable inflation patterns, and consumer prices maintain their current levels. Market participants who expect no rate changes assure sectors that depend on interest rates, such as banking and real estate.

Economic indicators show that moderate economic growth is occurring, with constant market demand. The policy position that the organization maintains reduces recession fears while it creates a positive effect on corporate earnings predictions. 

Outlook and Strategy

The banking and capital goods sectors attract market attention as these sectors experience growth, which results from trade activities and stable government policies. Technology shares will remain at risk until the global technology market reaches a state of stability. 

Market analysts recommend that investors study individual stocks instead of making multiple purchases throughout the market. The financial market currently favors quality cyclicals and major financial institutions, while high-valuation growth stocks require better earnings visibility to maintain their market position. 

Volatility is expected to continue, but it does not signal a major market breakdown. Tactical adjustments and disciplined risk control stay important in the current phase.

Final Thoughts 

The Indian stock market shows a balance between domestic optimism and global risk today. Trade developments and stable monetary policy support long-term confidence, while the global technology sell-off creates short-term pressure. 

Price movements reflect a tug-of-war between positive economic fundamentals and external uncertainty. The session highlights that markets reward selective and data-driven decisions rather than emotional trading. The overall trend stays constructive, but near-term movement remains uneven and full of small corrections.