Markets pare early losses as Sensex, Nifty rebound despite IT-led sell-off

Indian equity benchmarks recovered from a weak start on Thursday, with the Sensex and the Nifty clawing back losses even as information technology stocks remained under pressure.

The session opened on a cautious note after a sharp sell-off in IT counters, driven by concerns over slowing global demand and earnings visibility. Heavyweights in the sector dragged the indices lower in early trade, reflecting continued unease among investors.

As the day progressed, buying interest emerged in banking, FMCG and select metal stocks, helping the benchmarks stabilise. Gains in these pockets offset the drag from IT shares, allowing the Sensex and the Nifty to move into positive territory by mid-session.

Market participants pointed to bargain hunting and selective accumulation in non-IT sectors as key reasons for the rebound. Broader market sentiment stayed guarded, with traders closely tracking global cues and upcoming macroeconomic data.

Despite the recovery, analysts said volatility is likely to persist in the near term, especially for export-oriented sectors, until there is greater clarity on global growth trends and interest rate trajectories.