Benchmark indices closed sharply lower on Thursday, weighed down by intense selling in IT stocks amid rising concerns over AI-led disruption and an uncertain global environment. Weekly expiry-related volatility in BSE derivatives reinforced the risk-off mood. Sentiment deteriorated further after stronger-than-expected US jobs data tempered hopes of near-term rate cuts. The Nifty regained the 25,800 mark after hitting an intraday low of 25,752.40 in late trade, with technology stocks at the forefront of the decline.

The S&P BSE Sensex declined 558.72 points or 0.66% to 83,674.92. The Nifty 50 index fell 146.65 points or 0.57% to 25,807.20.

In the broader market, the BSE 150 MidCap Index dropped 0.46% and the BSE 250 SmallCap Index slipped 0.86%.

The market breadth was negative. On the BSE, 1,676 shares rose and 2,530 shares fell. A total of 179 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, added 1.53% to 11.73.

Economy:

India's retail inflation stood at 2.75% in January 2026 under the new Consumer Price Index (CPI) series with base year 2024=100. The corresponding inflation rates were 2.73% for rural areas and 2.77% for urban areas. This is the first retail inflation released by the government under the new CPI series.

Meanwhile, the central government's net direct tax collections, after accounting for refunds, stood at Rs 19.43 lakh crore so far this fiscal year, up 9.4% from a year earlier. Net corporate tax collection rose 14.51% to Rs 8.90 lakh crore, while taxes from non-corporates, including individuals and Hindu Undivided Families (HUFs), rose 5.91 % to about Rs 10.03 lakh crore.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.13% to 6.701 compared with previous session close of 6.710.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 90.5825 compared with its close of 90.7800 during the previous trading session.

MCX Gold futures for 2 April 2026 settlement declined 0.47% to Rs 158,002.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.10% to 96.82.

The United States 10-year bond yield rose 0.05% to 4.170.

In the commodities market, Brent crude for April 2026 settlement declined 39 cents or 0.56% to $69.01 a barrel.

Global Markets:

The US Dow Jones index futures are currently up by 155 points, signaling a strong opening for US stocks today.

European market advanced on Thursday as investors awaited for U.K. fourth quarter GDP and industrial production figures.

Most Asian market ended higher, buoyed by Japan's post-election rally to fresh highs, fueled by renewed confidence in domestic politics and the ruling administration's economic agenda.

Japanese stocks extending its post-election rally to fresh highs, fueled by renewed confidence in domestic politics and the ruling administration's economic agenda.

Media reports noted that Takaichi's snap-election landslide gives her an unusually strong, multi-year mandate to execute policy, which they view as broadly supportive for Japan's markets and corporate sector.

Overnight in the U.S., the Dow Jones Industrial Average snapped a three-day win streak after a better-than-expected January jobs report.

The blue-chip index lost 66.74 points, or 0.13%, and closed at 50,121.40. The S&P 500 was nearly flat at 6,941.47. The Nasdaq Composite dropped 0.16% to end at 23,066.47.

The Bureau of Labor Statistics' January nonfarm payrolls report showed job growth of 130,000 in January. Media reports suggested that the job growth gains for January were estimated to be around 55,000. Jobs growth in December was downwardly revised to 48,000.

Strong labor market has reduced the odds for interest rate cuts by the Federal Reserve.

The jobs report follows weaker-than-expected consumer data released on Tuesday. That report showed that consumer spending in December was flat, missing the 0.4% monthly gain expected from economists polled by Dow Jones.

Stocks in Spotlight:

The Nifty IT index declined 5.51% to 33,160.20 amid concerns over artificial intelligence-led disruption and global macro uncertainty. The sharp fall followed the launch of a new artificial intelligence tool by US-based startup Anthropic, which recently introduced a product tailored for corporate legal teams. The sector was also weighed down by stronger-than-expected US jobs data, which dampened expectations of near-term interest rate cuts by the Federal Reserve and added to investor caution toward export-oriented technology stocks. Meanwhile, the index is down 7.17% in the two consecutive sessions.

Coforge slumped 6.61%, Tech Mahindra declined 6.40%, and Oracle Financial Services Software dropped 6.35%. Infosys and LTIMindtree each slipped 5.97%, while Tata Consultancy Services fell 5.77%. HCL Technologies lost 5.20%, Mphasis declined 4.93%, Wipro was down 4.79%, and Persistent Systems dropped 4.70%.

Hindalco Industries fell 0.14%. The company said its wholly owned subsidiary Novelis Inc. has provided an update on the twin fire incidents at its Oswego plant in New York that occurred in September and November 2025. Novelis estimates the total free cash flow impact at $1.3-1.6 billion, which includes repair costs, operational downtime, working capital timing and other related expenses. The company said 70-80% of the free cash flow and adjusted EBITDA impact is expected to be recoverable through insurance, subject to policy terms, conditions and potential coverage disputes. No firm estimate for insurance recovery has been accrued at this stage. The Oswego hot mill is expected to restart by late Q2 calendar 2026.

Meanwhile, Novelis reported its Q3 earnings. The Hindalco subsidiary reported a net loss attributable to common shareholders of $160 million, compared with a net income of $110 million in the prior year, Net sales rose 3% YoY to $4.2 billion.

Ceigall India gained 1% after the company said its wholly owned subsidiary, Ceigall Infra Projects, has received a Letter of Award from the National Highways Authority of India for a highway project in Bihar. The bid project cost is approximately Rs 2,160 crore, and the project will be executed under the Hybrid Annuity Mode (HAM). The construction period is 730 days, followed by a 15-year operation and maintenance period.

Zydus Lifesciences rose 2.22% after the company announced a settlement agreement with Astellas Pharma Inc. in relation to Myrbetriq (generic name: Mirabegron) in the United States. The company, along with its wholly owned subsidiary Zydus Pharmaceuticals USA, has entered into a settlement that concludes all ongoing patent litigations with Astellas concerning Myrbetriq and Mirabegron.

Redtape rose 1.40% after the company reported strong growth in revenue and profitability for the quarter ended 31 December 2025. On a consolidated basis, net profit stood at Rs 104.53 crore in Q3 FY26, up 43.05% YoY from Rs 73.07 crore in Q3 FY25. On a sequential basis, profit surged 279.56% from Rs 27.54 crore in Q2 FY26. Net sales increased 18.98% YoY to Rs 786.55 crore, compared with Rs 661.05 crore in the year-ago quarter. Sequentially, revenue jumped 59.74% from Rs 492.40 crore in Q2 FY26.

SJVN rose 2.34% after the company reported a 50.6% jump in consolidated net profit to Rs 224.38 crore in Q3 FY26, compared with Rs 149.03 crore in Q3 FY25. Revenue from operations surged 61.2% year-on-year to Rs 1,081.97 crore during the quarter under review, up from Rs 670.99 crore in the corresponding period last year.

Zydus Lifesciences rose 2.22% after the company announced a settlement agreement with Astellas Pharma Inc. in relation to Myrbetriq (generic name: Mirabegron) in the United States.

Lenskart Solutions surged 10% after the company reported 237.9% increase in consolidated net profit to Rs 132.7 crore on a 37.4% rise in revenue to Rs 2,307.7 crore in Q3 FY26 as compared with Q3 FY25.

LG Electronics India slipped 3.17% after the company reported 61.6% drop in consolidated net profit to Rs 89.67 crore on a 6.4% fall in net sales to Rs 4,114.39 crore in Q3 FY26 as compared with Q3 FY25.

Patanjali Foods rose 0.27%. The company has reported 60.0% increase in consolidated net profit to Rs 593.44 crore on a 16.5% increase in net sales to Rs 10,483.71 crore in Q3 FY26 as compared with Q3 FY25.

Jupiter Wagons slipped 3.59% after its consolidated net profit tanked 35.28% to Rs 62.99 crore in Q3 FY26, compared with Rs 97.33 crore recorded in Q3 FY25. Revenue from operations fell 13.54% YoY to Rs 890.36 crore in the quarter ended 31 December 2025.

Bombay Dyeing & Manufacturing Company declined 2.84% after the company reported a consolidated net loss of Rs 9.85 crore in Q3 FY26, compared with a net profit of Rs 70.06 crore posted in Q3 FY25. Revenue from operations declined 21.9% year-on-year to Rs 324.02 crore in the quarter ended 31 December 2025.

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