Tuesday’s session saw the Sensex shed 1,069 points and the Nifty fall 288 points, with the IT index bearing the worst of the damage, losing over 4.45 per cent.
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Markets opened higher on Wednesday, February 25, with technology stocks leading the recovery a day after an Anthropic-triggered rout wiped out two sessions of gains. The Sensex opened at 82,530.12 and was trading at 82,711.12, up 485.20 points or 0.59 per cent, as of 9.55 am. The Nifty 50 opened at 25,512.60 and was quoting at 25,580.05, up 155.40 points or 0.61 per cent, after closing at 25,424.65 on Tuesday.
Tuesday’s session saw the Sensex shed 1,069 points and the Nifty fall 288 points, with the IT index bearing the worst of the damage, losing over 4.45 per cent. The selloff was triggered after Anthropic announced a new AI tool seen as a potential disruptor to existing software business models. Metal stocks, however, bucked the trend, gaining over 1 per cent even as the broader market sold off.
Wednesday morning saw IT stocks attempting a sharp reversal. Infosys (INFY) was the top Nifty gainer, trading at ₹1,312.40, up 2.89 per cent. HCL Technologies (HCLTECH) rose 2.71 per cent to ₹1,375.50, TCS gained 2.30 per cent to ₹2,632.80, and Tech Mahindra (TECHM) was up 2.19 per cent at ₹1,374.80. IndiGo (INDIGO) also featured among the top gainers, rising 1.98 per cent to ₹4,946.40.
On the losing side, Dr. Reddy’s Laboratories (DRREDDY) slipped 1.12 per cent to ₹1,285.60, weighed down despite the US SEC concluding its Ukraine payments investigation with no enforcement action recommended — a development analysts called neutral in the near term. Max Healthcare (MAXHEALTH) fell 0.85 per cent to ₹1,077.15, State Bank of India (SBIN) declined 0.60 per cent to ₹1,216.00, UltraTech Cement (ULTRACEMCO) was down 0.58 per cent to ₹12,885.00, and Eternal (formerly Zomato) shed 0.55 per cent to ₹252.60.
On the IT recovery, Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, “…the negative factor of sustained selling in IT stocks may be over and there is a possibility of some rebound in the segment.” He added, “…News of Anthropic’s Claude chatbot building partnership in software and services with IT firms indicate that there will be collaboration opportunities for Indian IT firms.” Vijayakumar further noted that “…FII buying has fundamental support from strong economy and rising corporate earnings,” adding that “…segments witnessing FII buying like financials, capital goods and pharmaceuticals are likely to remain resilient.” Fund flow data from February 24 showed FIIs as net sellers at ₹102.5 crore, while DIIs pumped in ₹3,161.2 crore.
On the technical setup, Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “…a fresh selloff is possible only after the market breaches the 200-day Simple Moving Average or 25,300/82,000. If the market manages to trade above this level, it could bounce back to 25,500–25,650/82,500–82,800.” He cautioned that “…the current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.”
Ponmudi R, CEO of Enrich Money, flagged multiple headwinds keeping sentiment guarded: “…geopolitical tensions, fresh tariff-related uncertainty following the US Supreme Court’s rejection of President Trump’s earlier reciprocal tariffs, and lingering AI-led concerns are likely to keep sentiment guarded at higher levels.” He noted that for Bank Nifty, “…as long as 60,600 is sustained, the broader bias remains positive, with the banking index likely to continue outperforming the broader market.”
Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, pointed out that “…in the previous session, the Nifty 50 breached the key support levels of 25,500 and 25,350 in the intra-day trade, reflecting heightened selling pressure,” adding that “…the index continues to trade below its 20, 50, and 100-day EMAs — indicating sustained downside pressure despite the possibility of short-term pullbacks.”
On the tariff front, Vijayakumar flagged a sector-specific concern: “…at 125 per cent duty there will be zero exports to the US in this segment,” referring to solar panel imports from India facing 125 per cent US import duties. “…The takeaway from this tariff decision is that exporters to the US are vulnerable to the whims and fancies of the US president,” he said.
Global cues were supportive, with Wall Street’s three major indices rising between 0.8 per cent and 1.0 per cent overnight, and Asian markets trading higher in early trade. President Trump’s State of the Union Address contained no major market-negative remarks. Gift Nifty had pointed to a positive opening, which markets duly delivered.
Published on February 25, 2026