Markets staged a dramatic intraday reversal on Wednesday, with the Nifty 50 surging to a high of 25,653 before surrendering most of those gains to close at 25,482.50, a modest rise of 57.85 points or 0.23 per cent, as selling pressure at higher levels filled the opening gap in what turned out to be a highly volatile first session of the March derivatives series. The Sensex edged up 50.15 points or 0.06 per cent to close at 82,276.07, having swung nearly 800 points from its intraday peak of 82,957.91.
The US Commerce Department’s imposition of a preliminary duty of 126 per cent on solar imports from India, citing unfair manufacturing subsidies that allowed Indian exporters to undercut US producers, added a fresh layer of concern to an already-cautious domestic sentiment. Renewed tariff-focused comments from US President Donald Trump further unsettled markets even as a US court dismissed parts of Trump’s earlier tariff framework.
Market movements
On the sectoral front, Nifty Metal led the charge with gains of around 2.60 per cent, followed by Nifty Pharma, which witnessed a fresh breakout on the daily chart. The Nifty IT index snapped a five-session losing streak, gaining over 2 per cent, aided by short covering and a rebound in global technology stocks following Anthropic’s announcement of new enterprise partnerships. Auto and healthcare also advanced 1-2 per cent. On the losing side, Nifty PSU Bank emerged as the top sectoral loser, followed by Nifty FMCG, Realty and Infra, which declined in the range of 0.19-0.40 per cent.
Ajit Mishra, SVP, Research, Religare Broking, said: “…the broader markets outperformed despite the choppiness, with both the mid-cap and small-cap indices gaining in the range of 0.56-0.91 per cent… a selective approach based on sectoral trends continues to work well, with preference for banking, auto, metal and energy counters for long positions.”
The broader market outshone the frontline indices. The Nifty Midcap 100 rose 339.75 points or 0.58 per cent to 59,406.10, while the Nifty Smallcap 100 advanced 160.05 points or 0.94 per cent to 17,118.70. The Nifty Next 50 gained 620.80 points or 0.89 per cent to 70,399.25. On the BSE, advances outpaced declines with 2,065 stocks gaining against 2,131 declining and 174 remaining unchanged. A total of 114 stocks hit 52-week highs, while 323 touched 52-week lows.
Gainers, losers
Among Nifty 50 top gainers, HCL Technologies surged 2.74 per cent to ₹1,375.90, while Bajaj Auto jumped an identical 2.74 per cent to ₹10,098.50. Tata Steel climbed 2.43 per cent to ₹214.22, Shriram Finance gained 2.19 per cent to ₹1,085 and TCS advanced 2.15 per cent to ₹2,629. On the losing side, Reliance Industries fell 1.96 per cent to ₹1,400.80, State Bank of India dropped an equal 1.96 per cent to ₹1,199.30, Adani Ports declined 1.70 per cent to ₹1,529, Eternal slipped 1.54 per cent to ₹250.10 and ITC shed 1.33 per cent to ₹319.20.
Vinod Nair, Head of Research, Geojit Investments, said: “…the initial strength tapered off as renewed tariff‑focused comments from the US President reignited global trade concerns, limiting the day’s gains with depreciation in INR… geopolitical tensions such as US-Iran developments, along with AI and tariff‑related news flow, are likely to shape market direction in the near term.”
Foreign Institutional Investors turned net sellers on February 25, offloading equities worth ₹102 crore, while Domestic Institutional Investors provided a counter-cushion with net purchases of ₹3,161 crore.
On the currency front, the rupee traded in a narrow range near 86.90 against the US dollar. Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said: “…rupee remains range-bound with support seen near 91.25 and resistance around 90.50, awaiting clearer direction from global trade developments and dollar index movement.”
Gold held firm, gaining ₹900 to trade at ₹1,60,900, as CME Gold rose $40 to around $5,175. Trivedi noted: “Ongoing tariff uncertainties and persistent US-Iran tensions continue to support safe-haven demand, keeping prices elevated despite intermittent profit-booking… trend remains firm as long as key supports hold,” with immediate support near ₹1,55,000 and resistance at ₹1,64,000.
Technical analysis
Technically, Nifty has formed a high-wave candle with a small real body and long shadows on both sides, remaining largely within the previous session’s price range — a classic consolidation signal. The index has now oscillated within the 25,350-25,900 band for nine consecutive sessions. India VIX declined 4 per cent, suggesting reduced near-term volatility.
Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services, flagged that investors will closely watch the release of India’s new GDP series on Friday, which could offer fresh clarity on domestic growth momentum.
Looking ahead, Shrikant Chouhan, Head Equity Research, Kotak Securities, cautioned that the 20-day SMA at 25,600/82,500 will act as an immediate resistance. “…if the market moves above the 20-day SMA or 25,600/82500, the pullback could extend toward 25,750-25,800/82,800-83,000.” A breach below 25,327 could open the door to 25,100-25,200, near the 200-day EMA. With geopolitical developments around US-Iran and evolving AI and tariff-related news flow set to dominate sentiment, near-term direction will hinge on whether Nifty can decisively reclaim the 25,650-mark or slip below the critical 25,350 support.
Published on February 25, 2026