Sensex and Nifty Performance Overview
The Sensex opened the day at 83,252.06, initially falling by 487.07 points (-0.58%) before recovering some ground to close near the flat line. The index remains approximately 3.03% below its 52-week high of 86,159.02, signalling a consolidation phase after recent gains. Notably, the Sensex is trading below its 50-day moving average (DMA), which itself is positioned above the 200-DMA, indicating a mixed technical setup with potential for volatility in the near term.
The broader market reflected a similar trend, with the BSE100 large-cap index marginally down by 0.04%. Mid-cap and small-cap segments underperformed, falling 1.59% and 3.3% respectively, suggesting selective profit-taking in riskier assets.
Sectoral Trends: Oil & Gas Outperforms, IT Sector Bears the Brunt
Sectoral performance was sharply bifurcated. The Oil & Gas sector emerged as the top gainer, advancing 2.35%, buoyed by rising crude oil prices and positive earnings outlooks from key players. This sector’s strength was a key support for the market, reflecting investor preference for defensive and commodity-linked stocks amid global uncertainties.
Conversely, the Nifty IT sector suffered a steep decline of 6.68%, dragged down by profit booking and concerns over margin pressures. Heavyweights such as Infosys and LTI Mindtree were among the worst performers, with Infosys plunging 8.17% and LTI Mindtree down 7.65%. The IT sell-off was the primary factor behind the Sensex’s subdued close, highlighting investor caution ahead of upcoming quarterly results.
Top Gainers and Losers Across Market Caps
Among the BSE500 stocks, Sheela Foam led the gainers with a robust 14.80% surge, followed by Lloyds Metals (+9.07%) and IDBI Bank (+8.46%). These stocks benefited from sector-specific tailwinds and positive corporate developments.
On the downside, eClerx Services tumbled 9.21%, Infosys declined 8.17%, and LTI Mindtree dropped 7.65%, reflecting the broader IT sector weakness. In the mid-cap space, Coforge fell 7.53%, while small caps such as Timex Group declined nearly 10%, underscoring risk aversion in smaller, more volatile stocks.
Market Breadth and Investor Activity
The advance-decline ratio on the BSE500 stood at a healthy 1.33x, with 284 advances against 214 declines, indicating a generally positive breadth despite headline index weakness. This suggests that while large IT stocks weighed on the indices, a majority of stocks across sectors managed to post gains.
Foreign institutional investors (FIIs) remained cautious, with subdued buying interest reported, while domestic institutional investors (DIIs) showed moderate participation, supporting select sectors such as Oil & Gas and banking. This mixed participation reflects ongoing uncertainty in global markets and the cautious stance of investors ahead of key earnings announcements.
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Technical and Valuation Insights
From a technical perspective, the Sensex’s inability to sustain above the 50-DMA signals a cautious outlook in the short term. The 50-DMA currently acts as a resistance level, while the 200-DMA provides a longer-term support base. Investors should watch for a decisive breakout above the 50-DMA to confirm renewed bullish momentum.
Valuation metrics across sectors remain mixed. The Oil & Gas sector trades at a premium due to strong earnings visibility and global commodity price support. In contrast, the IT sector is under pressure, with valuations contracting amid concerns over margin compression and currency headwinds. This divergence is reflected in the sectoral performance seen today.
Upcoming Corporate Earnings to Watch
Market participants are closely monitoring the earnings calendar, with key results expected from Bharti Airtel, Tata Motors Passenger Vehicles, and Power Finance Corporation on 5 February 2026. These results are likely to set the tone for sectoral performance in the coming weeks, especially in telecom, automotive, and financial services.
Global Market Influence
Global cues remained mixed, with US markets showing modest gains amid ongoing economic data releases, while European indices traded flat. Crude oil prices firmed up, supporting the domestic Oil & Gas sector. However, concerns over geopolitical tensions and inflationary pressures continue to temper risk appetite globally, influencing cautious trading in Indian markets.
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Investor Takeaway
Today’s market action underscores the importance of sectoral differentiation in portfolio construction. While defensive sectors such as Oil & Gas continue to attract buying interest, the IT sector’s sharp correction highlights the risks associated with earnings uncertainty and valuation pressures. Investors should remain vigilant ahead of the upcoming earnings season and monitor technical levels closely for signs of sustained market direction.
With the Sensex hovering near key technical thresholds and mixed global signals, a cautious but selective approach is advisable. Large-cap stocks with strong fundamentals and sectors benefiting from global commodity trends may offer relative safety, while riskier mid and small caps could remain volatile in the near term.
Summary of Key Market Metrics (4 Feb 2026)
Sensex Close: 83,627.81 (-111.32, -0.13%)
Top Sector Gainer: Oil & Gas (+2.35%)
Top Sector Loser: Nifty IT (-6.68%)
BSE500 Advances: 284 | Declines: 214 | Advance-Decline Ratio: 1.33x
Large Cap Index Change: -0.04%
Mid Cap Index Change: -1.59%
Small Cap Index Change: -3.3%
Top Large Cap Gainer: Dixon Technologies (+4.44%)
Top Large Cap Loser: Infosys (-8.17%)
Top Mid Cap Gainer: Lloyds Metals (+9.07%)
Top Mid Cap Loser: Coforge (-7.53%)
Top Small Cap Gainer: Faze Three (+20.00%)
Top Small Cap Loser: Timex Group (-9.99%)
Looking Ahead
As the market braces for key earnings releases and global economic developments, investors should keep a close eye on sectoral rotations and technical signals. The upcoming results from Bharti Airtel, Tata Motors Passenger Vehicles, and Power Finance Corporation will be pivotal in shaping market sentiment and sectoral leadership in the near term.
In conclusion, the Indian equity market’s modest decline on 4 February 2026 reflects a cautious stance amid sectoral divergences and mixed global cues. While Oil & Gas stocks provided a defensive anchor, the IT sector’s sharp correction weighed on overall indices. Market breadth remained positive, suggesting underlying resilience, but selective stock picking and risk management remain paramount as investors navigate an uncertain macroeconomic environment.
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