Stock Market Update: Sensex snaps back as IT stocks do the heavy lifting while the rest of the market sulks

Stock Market Update: Indian equities bounced back from a volatile start on Wednesday, with benchmark indices recovering sharply even as global sentiment remained weak and the domestic market looked for fresh cues after the earnings season wrapped up.

The Sensex surged 396.31 points, or 0.47 per cent, to 85,069.33 by 12:33 pm, hitting the day’s high after opening at 84,643.78 and coming off Tuesday’s close of 84,673.02. The Nifty 50 rose 114.05 points, or 0.44 per cent, to 26,024.10, supported by buying in heavyweight information technology and telecom counters.

The rebound came despite subdued global markets and a lack of incremental domestic triggers, with investors largely marking time until new policy signals and macroeconomic data offer clearer direction. Foreign flows, meanwhile, remained uneven, adding to the morning’s volatility.

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Broader markets reflected the cautious mood. The midcap index edged up 0.27 per cent, while the smallcap index slipped 0.23 per cent as traders trimmed positions in high-beta pockets following a strong run-up.

A stark sectoral divergence defined the session. Nifty IT and telecom indices jumped 2–3 per cent, extending their recent outperformance. Analysts attributed the trend to a shift into traditional tech names as part of an emerging “anti-AI trade,” where investors rotate out of overheated AI-linked plays and back into more stable, cash-generating technology stocks. Steady deal wins and improving commentary from IT majors also aided sentiment.

On the other hand, media, healthcare, oil & gas, chemicals and realty declined marginally, mirroring weakness in cyclical and commodity-heavy segments globally. Analysts said persistent concerns around demand, pricing pressure in industrial commodities, and muted sector-specific drivers weighed on these indices.