Benchmark indices S&P BSE Sensex and NSE Nifty 50 extended loses in Wednesday’s session, but the weakness was far from broad-based, with a sharp selloff in IT stocks pulling down the indices even as several domestic-facing sectors held firm.

As of 1:30 pm, the 30-share BSE Sensex was trading 0.84% lower at 78,605.03, while the broader Nifty 50 was trading 0.67% lower at 24,413.10.

HCLTech fallout hits IT pack

The pressure was led by the technology pack, where sentiment turned decisively negative after HCLTech’s post-results reaction. The stock tumbled over 10%, emerging as the top loser on the NSE, while the weakness spread across the sector. Tech Mahindra fell nearly 6% ahead of its results later in the day, while Infosys and TCS declined over 4% and 3%, respectively. The selloff reflected concerns around demand visibility, slower decision-making and a cautious outlook from clients.

Financials slip, but remain stable

The sharp correction in IT stocks stood in contrast to the rest of the market, where declines were limited and, in many cases, absent. Financials were mildly weak, with private banks and broader financial services indices trading in the red, but the fall was contained and lacked any signs of stress.

Defensives and domestic plays hold firm

More importantly, several sectors continued to trade in the green, stressing the absence of a broader risk-off sentiment. FMCG stocks saw steady buying, with Tata Consumer Products leading the gains, followed by Hindustan Unilever and Nestlé India. Realty stocks remained firm, while oil & gas, metals and PSU banks also posted gains, pointing to continued strength in domestic and cyclical themes.

The list of gainers further highlighted this divergence. Alongside Tata Consumer and HUL, stocks such as NTPC, Jio Financial Services, Reliance Industries and Axis Bank were among those trading higher, indicating that investors were rotating within the market rather than exiting risk altogether.

The day’s moves suggest that the weakness in equities is being driven more by earnings-specific triggers than macro concerns. Despite lingering geopolitical uncertainty and elevated crude prices, there has been no widespread selling across sectors or broader market segments.

The focus now shifts to Tech Mahindra’s results that will come out later in the day, and it could further influence sentiment in the IT space. For now, the pressure is concentrated in IT, while the rest of the market continues to hold its ground, supported by steady flows into defensives and domestic plays.