The Nifty IT index declined 2.5%, with Anthropic’s launch of its advanced Claude Sonnet 4.6 model amplifying investor fears around AI-led disruption of Indian IT services.
Equity benchmarks closed in positive territory for the third consecutive session on Wednesday, February 18, but the headline gains masked a deepening fault line: the ongoing rout in information technology stocks, which continued to bleed on fresh concerns over artificial intelligence disrupting India’s $300-billion outsourcing industry.
The Sensex advanced 283.29 points, or 0.34 per cent, to close at 83,734.25, while the Nifty 50 gained 93.95 points, or 0.37 per cent, to settle at 25,819.35, its highest close in recent sessions. Both indices opened firm, drifted lower in early trade, recovered through range-bound action, and finally pushed higher in the final hour to close near the day’s high.
The Nifty IT index declined 2.5 per cent, with Anthropic’s launch of its advanced Claude Sonnet 4.6 model amplifying investor fears around AI-led disruption of Indian IT services. Among Nifty50 losers, Wipro fell 1.64 per cent to ₹212.15, Tech Mahindra shed 1.56 per cent to ₹1,500, Eternal declined 1.56 per cent to ₹277.10, Infosys dropped 1.38 per cent to ₹1,372, and Adani Enterprises slipped 1.33 per cent to ₹2,213.
Metal, FMCG, and banking stocks provided the counterweight. Kwality Walls (India) led Nifty gainers with a 4.97 per cent surge to ₹29.34, followed by HDFC Life up 3.39 per cent to ₹729.70, Tata Steel 2.84 per cent to ₹208.85, ITC 2.21 per cent to ₹332.65, and Bajaj Auto crossing the ₹10,000 mark at 1.81 per cent to ₹10,004.
Bank Nifty outperformed, rising 376.80 points or 0.62 per cent to 61,550.80. Nifty Midcap 100 and Smallcap 100 each gained around 0.50 per cent. BSE breadth was moderately positive — 2,237 advances against 1,955 declines out of 4,383 stocks traded. India VIX eased to 12.39, signaling reduced volatility. Ajit Mishra, SVP Research at Religare Broking, noted that “market participants are attempting to regain control, but indications still favor an extended consolidation phase.”
The rupee traded range-bound near 86.65 against the dollar. Jateen Trivedi of LKP Securities said the pair “continues to oscillate within a narrow band,” with resistance near 86.25 and support around 86.90. Gold settled at ₹1,52,850 per 10 grams, up ₹1,500 or 1 per cent, with CME Gold recovering towards $4,915. WTI crude slipped to a two-week low of $61.9 a barrel after Iran signaled progress in nuclear talks, easing the geopolitical risk premium.
Looking ahead, the 26,000 level on the Nifty remains the key resistance, while 25,600 is expected to cushion any dips. FOMC meeting minutes and US Core PCE data are the key near-term triggers that could set the tone for global risk appetite and domestic market direction.
Published on February 18, 2026