IT carnage snaps three-day winning streak, drags markets lower; midcaps cushion fall as breadth stays positive

Benchmark indices ended Wednesday’s session nearly 1% lower, ending a three-day winning streak as IT carnage dragged markets down following weak earnings and cautious commentary.

The Nifty 50 failed to hold the 24,400 mark, closing at 24,378, down 199 points, while the Sensex declined 757 points to end at 78,516. The broader Nifty Bank also weakened, falling 247 points to 57,124.

IT stocks crack after earnings disappoint

The IT pack remained under heavy pressure, with the sectoral index falling nearly 5% during the session.

HCLTech emerged as the top Nifty loser, plunging nearly 11% after reporting weak Q4 results and a subdued outlook. The selling was broad-based across the IT space, with Persistent Systems falling around 5% and Tata Elxsi declining over 6% following their quarterly earnings.

Tech Mahindra also ended lower, slipping nearly 3% despite its in-line quarterly results, as sentiment across the sector remained fragile. Infosys and TCS were also among the key laggards.

Midcaps hold ground, breadth positive

Despite the weakness in frontline indices, broader markets showed resilience. The midcap index rose 115 points to 60,202, helping market breadth remain positive, with the advance-decline ratio at 3:2 in favour of advancing stocks.

Tata Consumer Products, Hindustan Unilever and NTPC were among the top gainers on the Nifty 50, rising up to 3%, highlighting continued buying in defensives and domestic-focused names.

This divergence indicates that the selloff was largely sector-specific, rather than a broad-based risk-off move.

Stock-specific action dominates

BEML rose nearly 4% after securing an order worth ₹590 crore from the defence ministry, while Premier Explosives surged 8% after bagging a ₹350 crore order from an international client.

IREDA rebounded sharply, rising nearly 9% after a two-day decline, as buying emerged at lower levels.

On the downside, Transformers & Rectifiers (India) Ltd fell 7% after reporting an FY26 order book below guidance.

Meanwhile, sugar stocks rallied, with Balrampur Chini gaining around 6%, after the government indicated a potential move toward 100% ethanol blending, boosting sentiment in the sector.