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Benchmark indices Sensex and Nifty ended largely flat on Wednesday, with the 30-share Sensex snapping its three-day gaining streak, while Nifty managed to close marginally higher. The subdued close came amid a sharp selloff in IT stocks, with heavyweights such as TCS, Persistent and Infosys tumbling up to 3%.The BSE Sensex ended 40 points lower to close the session at 84,234 or 0.05% in the red, while the Nifty 50 gained 19 points or 0.07% points to end the day at 25,954.Expert views“Indian benchmark indices traded in a narrow and choppy range after opening on a positive note. Volatility remained contained, and the broader undertone continued to stay constructive. Steady domestic institutional participation, selective earnings-driven buying and signs of stabilising FII flows are providing structural support to the market,” Ponmudi R, CEO of Enrich Money said.However, the upside remains capped in the absence of a decisive breakout or fresh positive triggers. Sectoral trends were mixed, with banking, auto and healthcare stocks posting strong gains, while IT witnessed broad-based selling pressure, emerging as a key drag on the benchmark indices. Stability in the USD/INR pair is offering macro comfort and helping avert any sharp risk-off reaction. Overall, sentiment remains cautiously optimistic—resilient beneath the surface, yet awaiting a stronger directional catalyst, he added.Global MarketsEuropean equities edged lower on Wednesday as investors digested a fresh wave of corporate earnings. The pan-European Stoxx 600 was down about 0.2%, with most major regional markets trading in the red. London’s FTSE 100 bucked the broader trend, rising 0.3% as risk-off sentiment pushed investors toward defensive mining and energy stocks.Global markets are also focused on the U.S. January nonfarm payrolls data. Asia, equities moved modestly higher despite weaker-than-expected Chinese inflation data.Meanwhile, U.S. stock futures edged up late Tuesday ahead of the delayed jobs report. S&P 500 and Nasdaq 100 futures each gained around 0.2%, while Dow Jones Industrial Average futures rose about 85 points, or nearly 0.2%. The Bureau of Labor Statistics’ January payrolls report was postponed due to the partial U.S. government shutdown that ended on Feb. 3.Crude impactOil prices advanced on Wednesday, supported by rising geopolitical risk as U.S.-Iran talks remained fragile, while improving demand signals from India also helped ease concerns around a potential supply surplus.Brent crude futures climbed 57 cents, or 0.83%, to $69.37 a barrel by 0711 GMT, while U.S. West Texas Intermediate crude rose 56 cents, or 0.88%, to $64.52.“Oil retains a bullish tail-risk bid as U.S.-Iran talks continue but remain delicate, keeping the Strait of Hormuz risk premium elevated amid ongoing sanctions pressure, tariff threats linked to Iranian trade and a heightened U.S. military presence in the region,” LSEG analysts said in a report.Rupee vs DollarThe Indian rupee ended 0.1% lower at 90.70 per U.S. dollar on Wednesday, compared with its previous close of 90.5775.(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of textile majors such as Gokaldas Exports, Pearl Global, Kitex Garments, Arvind Fashions and KPR Mill, among others, tumbled up to 6% on Wednesday, extending losses for a second straight session after neighbouring Bangladesh signed a trade agreement with the U.S., securing a reduced 19% tariff and exemptions on select textiles and garments made using materials sourced from the country.Under the agreement, textiles manufactured in Bangladesh using U.S.-produced cotton and man-made fibre will attract zero reciprocal tariffs in the U.S. market. The development is being viewed as negative for Indian manufacturers, as it could intensify competitive pressures.However, domestic brokerage JM Financial sought to calm investor nerves, noting that Bangladesh has always been, and was expected to remain, competitive in textile exports, and that these tariff tweaks do not materially alter the broader competitive landscape.Further, the list of ‘certain items’ eligible for exemptions is not yet in the public domain. “India too enjoys the benefit of significantly lower tariffs if the total usage of U.S. cotton in the product is at least 20% of the mix. For example, in a $10 product, if India uses U.S. cotton worth $2, then tariffs are payable only on $8, and this exemption increases with higher use of U.S. cotton,” analysts explained.Also read: Risk-on trade back? Smallcap stocks rally up to 28% in 2026, but market breadth stays weakThe real talking point, experts note, is a proposed mechanism under which select Bangladeshi textile and apparel exports could qualify for zero duty if they are linked to the use of U.S. textile inputs such as cotton and man-made fibre (MMF). However, the benefit is expected to be product-specific, subject to volume caps, and remains pending detailed implementation rules. India already follows a somewhat comparable framework, where greater use of U.S. cotton lowers the dutiable value of exports, effectively reducing the overall tariff burden.The White House said Bangladesh will also ease non-tariff barriers by accepting U.S. vehicle safety and emissions standards, recognising U.S. Food and Drug Administration certifications, and removing import restrictions on remanufactured goods.The overall U.S. tariff rate on Bangladeshi exports has meanwhile been reduced to 19%, slightly higher than India’s 18% rate. “The agreement will provide U.S. and Bangladeshi exporters unprecedented access to each other’s respective markets. The agreement will build upon our longstanding economic relationship,” the two countries said in a joint statement.(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)