TLDR
Market Recap: February 04, 2026
On February 04, Indian equities delivered their strongest single-session gain in nine months as the India-United States trade deal removed a major tariff overhang and triggered broad risk-on buying and short covering. The BSE Sensex closed at 83,739.13, up 2,072.67 pts (+2.54%), while the NSE Nifty 50 settled at 25,727.55, up 639.15 pts (+2.55%). Nifty Midcap 100 and Nifty Smallcap 100 gained +2.84% and +2.82%, respectively, while India VIX cooled to 12.90, down 0.97 (-6.99%). The rupee posted its best day in years on expectations of renewed foreign inflows, adding to the positive tape ahead of the next Reserve Bank of India policy focus.
Key Drivers :
IT got hit by AI fears: Anthropic’s new automation plug-ins reignited disruption risk, dragging heavyweights and capping index upside.
Trade deal still a tailwind: Export-oriented names held up on tariff relief optimism, even as IT stress dominated headlines.
Volatility cooled, breadth held: Mid and small caps gained, and VIX fell, showing risk appetite survived despite the sector shock.
Today’s Top Stories:
IT majors sold off: Infosys and TCS slid hard as Anthropic’s new plug-ins revived fears of AI cutting billable staffing demand.
Tata Power weak quarter: Profit fell on thermal softness, keeping attention on renewables and transmission as the real growth engine.
Apollo Tyres beats: Profit jumped on replacement and OEM demand, with operating leverage back in the narrative for autos.
Fractal IPO moves ahead: Price band set and timelines announced, testing investor appetite for India’s first major AI-focused listing.
Sigachi relief rally: CEO bail sparked a 20% spike, but legal overhang stays central to the stock’s next leg.
TOP STORIES
1. IT majors crack on AI disruption fear, staffing model gets repriced
Gemini-2.5
Move: IT pack sold off hard; sector leadership flipped intraday.
So what: Markets are pricing fewer billable hours if automation compresses headcount-heavy delivery.
Tape: Infosys, TCS, HCLTech dragged benchmarks despite broader resilience.
IT stocks sold off on AI disruption fears. What’s your read?
2. Tata Power slips after a weaker quarter; thermal drag shows up
Gemini-2.5
Print: Q3 profit down about 25% YoY, thermal softness weighed on the quarter.
So what: Investors want clearer visibility into renewable growth, offsetting legacy thermal volatility.
Tape: Stock stayed under lens as the earnings day debate stayed split.
Tata Power profit dipped on thermal softness. Your stance?
3. Apollo Tyres beats, replacement demand drives operating leverage
Gemini-2.5
Print: Q3 profit up about 39% YoY, demand strength showed up in numbers.
So what: Higher utilisation plus steady mix can defend margins if raw materials behave.
Tape: Stock got results-driven buying, with autos and ancillaries holding firm.
$APOLLOTYRE.NSE ( ▲ 1.73% )
Apollo Tyres posted a strong profit jump. What drives the next move?
4. Fractal Analytics sets IPO band, AI listing calendar gets a pulse
Gemini-2.5
Update: Price band set at ₹857 to ₹900; valuation implied near $1.6 bn.
So what: This is a real demand test for AI analytics in India’s primary market.
Tape: IPO headlines turned sentiment constructive for upcoming tech issuers.
Fractal set its IPO price band. Your view on demand?
5. Sigachi relief rally after CEO bail, legal overhang still key
Gemini-2.5
Update: CEO granted bail in the factory fire case; near-term uncertainty eased.
So what: Compliance and legal milestones now decide the confidence rebuild, not just earnings.
Tape: Stock hit upper circuit, but follow-through depends on clarity ahead.
Sigachi jumped after CEO bail. What’s the key variable now?
GYAANI HOT TAKES
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