Sensex Flat, Nifty Green — But IT Crashes ~6%: Trade Deal Hype vs AI Jitters

The market on 4 February 2026 looked calm on the surface… but inside, it was dramatic.

On 4 February 2026, the headline indices ended almost flat to slightly positive — Sensex at 83,817.69 (+0.09%) and Nifty at 25,776 (+0.19%). 

But the real story was the split: IT crashed, while most other sectors stayed supportive.

What moved the market on 4 February 2026

1) Trade deal optimism kept the market standing

Markets were still digesting the India-US trade deal headlines, where US tariffs on Indian goods were announced to be cut from 50% to 18%. That created a positive mood in export-linked pockets and helped prevent a broader selloff. 

2) IT sector “bloodbath” on AI disruption fear

The Nifty IT index fell 5.9%, its steepest single-day drop in six years. 

The trigger: concerns that new automation tools from Anthropic could accelerate disruption in IT services and outsourcing-style work. 

Major IT names fell sharply:

• Infosys down as much as 7%

• Tata Consultancy Services down about 7%

• HCLTech, Tech Mahindra, Wipro also deep in the red 

3) Broader market held up (because most sectors were green)

Even with IT collapsing, 13 out of 16 sectors ended higher — that’s why indices didn’t break down. 

Some export-linked names jumped strongly (textiles/seafood pack), showing where money was rotating. 

Related explainers on NishiJain.com: Sensex Slides ~800 Points, Nifty Slips Below 25,500: Trump Tariff Shock + IT Selloff Hits Hard, Market Rebound Fades After Early Rally: Profit-Booking Pulls Nifty Below 25,500, Banks & FMCG Drag and Hindalco Falls ~6% as Nifty Metal Slides ~5%: Simple Reason Behind the Metal Selloff (Jan 30, 2026).

Nishi’s 30-second decode (why it matters)

The session on 4 February 2026 wasn’t “bullish” or “bearish.” It was a rotation day.

• Trade deal headlines = support for sentiment

• IT crash = fear of structural change

• Result = index flat, sector story loud

If IT stays weak, indices can look “okay” but stock-picking gets harder. If IT stabilizes, the trade-deal optimism can spread faster.

This post is for education/news explanation only — not investment advice. Markets are risky; do your own research.

About the author

Nishi Jain is a full-time trader based in Jaipur, Rajasthan, and ex-JioBlackRock. More about Nishi →