Market Outlook for India – 24 February 2026
Major indices
| Index | Closing level | % change vs previous day | Notes |
|---|---|---|---|
| Nifty 50 | 25,424.65 | –1.12 % | Fell after profit‑taking and heavy selling in technology stocks; closed 288 points lower. |
| BSE Sensex | 82,225.92 | –1.28 % | Lost over 1,068 points as renewed worries around global trade and AI‑driven disruption triggered broad‑based selling. |
| Nifty Next 50 | 69,778.45 | +0.08 % | Managed a small gain, helped by strength in energy, metal and FMCG heavyweights. |
| Nifty Bank | 61,047.30 | –0.35 % | Banks fell modestly as investors booked profits; no fresh PSU bank merger plans were announced. |
| India VIX (volatility index) | ~14.6 | Slightly higher | Volatility remained elevated amid F&O expiry and global uncertainty. |
Sectoral performance
| Sector index | Closing level | % change | Remarks |
|---|---|---|---|
| Nifty IT | 30,053.50 | –4.74 % | Worst‑performing sector; every constituent fell sharply after a research report heightened fears that artificial intelligence could disrupt legacy IT service models. |
| Nifty Auto | 27,950.00 | –0.45 % | Eased on profit‑taking; auto shares have rallied recently. |
| Nifty FMCG | 52,235.25 | +0.19 % | Defensive buying lifted consumer‑staple counters. |
| Nifty Pharma/Healthcare | Pharma: 22,632.05, Healthcare: 14,665.35 | +0.24 % / +0.22 % | Pharma shares gained on the back of US FDA approvals and a tilt toward defensive sectors. |
| Nifty Oil & Gas | 12,211.45 | +0.50 % | Crude prices firmed; energy shares closed higher. |
Other sector highlights: energy, metals and FMCG stocks lent support, while public‑sector banks saw mild losses. The IT sell‑off weighed heavily on market sentiment.
Top gainers and losers (selected stocks)
| Top gainers | LTP (₹) | % change | Notes |
|---|---|---|---|
| Bandhan Bank | 180.55 | +3.97 % | Continued its multi‑day rally as bargain hunters accumulated the stock. |
| Waaree Energies | 3,023.50 | +3.69 % | Solar‑equipment manufacturer gained on a 500 MW module order from a domestic power producer. |
| AU Small Finance Bank | 1,002.20 | +2.88 % | Benefited from strong traction in deposits and stable asset quality. |
| Hitachi Energy India | 24,903.00 | +2.72 % | Extended gains on expectations of increased grid‑investment spending. |
| Torrent Pharmaceuticals | 4,397.90 | +2.10 % | Helped by renewed interest in healthcare shares. |
| Top losers | LTP (₹) | % change | Notes |
|---|---|---|---|
| LTI Mindtree | 4,501.00 | –6.84 % | Fell to a one‑year low as the tech rout intensified; investors worried about AI‑driven margin pressure. |
| Tech Mahindra | 1,345.40 | –6.63 % | Another major victim of the IT sell‑off; sharp volume‑driven decline. |
| Persistent Systems | 4,662.00 | –6.34 % | Continued to slide after multiple downgrades amid AI fears. |
| HCL Technologies | 1,339.20 | –6.10 % | IT heavyweight lost ground; traders switched to defensives. |
| Coforge | 1,212.20 | –5.96 % | Declined on concerns about slowing global IT spending. |
Other notable movers: Indoco Remedies (+7 %) surged after receiving U.S. FDA approval for a Brivaracetam oral solution. Pace Digitek rose ~3 % on winning a purchase order from Reliance Industries. One MobiKwik Systems jumped ~13 % after its broking subsidiary received approval from BSE. Natco Pharma and Endurance Technologies gained more than 5 %, while L&T Technology Services, Infosys, Tata Elxsi and other IT names fell 5–8 %.
What drove the market lower?
- AI‑related tech sell‑off: A widely circulated research note intensified fears that artificial intelligence could disrupt India’s traditional IT‑services model. Technology stocks-particularly LTI Mindtree, Tech Mahindra, Persistent Systems and HCL Tech-led the decline and pushed the Nifty IT index down by almost 5 %.
- Tariff uncertainty: U.S. President Donald Trump threatened to impose new 15 % global tariffs, reversing the previous week’s relief provided by the U.S. Supreme Court. The rhetoric unsettled global markets and raised concerns over exports and corporate margins.
- Rising crude oil and weaker rupee: Brent crude hovered near a seven‑month high and the rupee slid to 90.96 per U.S. dollar, stoking fears about imported inflation and widening trade deficits.
- F&O expiry and profit‑taking: The monthly derivatives expiry led to heightened volatility and prompted traders to book profits after a two‑session winning streak.
- Mixed global markets: Global equities were broadly weak. U.S. benchmarks (Dow –1.66 %, S&P 500 –1.04 %, Nasdaq –1.13 %) slumped on AI‑disruption worries. European shares slipped as traders waited for clarity on U.S. tariffs. China kept its loan‑prime rates unchanged, while South Korea and Taiwan rallied on demand for AI‑linked hardware stocks.
Global cues
- United States: Wall Street indices fell sharply overnight. IBM stock plunged more than 13 % on concerns about outdated programming systems, and several tech giants (Microsoft, CrowdStrike, Amazon) declined as AI disruption worries weighed. Traders also braced for the economic impact of President Trump’s proposed global tariffs.
- Europe: European benchmarks were slightly lower; investors weighed stronger euro‑zone PMI data against trade uncertainty and weak banking stocks. Germany’s DAX fell about 0.2 % in afternoon deals, while France’s CAC 40 and the UK’s FTSE 100 were flat.
- Asia: China’s central bank left its one‑year and five‑year Loan Prime Rates unchanged at 3.0 % and 3.5 % respectively. Japanese and mainland Chinese markets were closed for holidays. The Hang Seng added more than 2.5 %, while South Korea’s Kospi gained nearly 1 % thanks to AI‑linked chip stocks.
- Commodities: Gold and silver retreated after recent gains, while Brent crude hovered above US$71 per barrel. The rupee weakened to ~₹90.96 per US dollar.
Stocks & corporate news to watch
- Bharti Airtel: The telecom major plans to capitalise its Airtel Money NBFC with roughly ₹20,000 crore (70 % from Airtel and 30 % from Bharti Enterprises) over the next few years.
- Chalet Hotels: Board approved a ₹632.8 crore investment in a 330‑room luxury hotel project in Hyderabad.
- Patel Engineering: Emerged as the lowest bidder for a ₹133 crore irrigation project in Maharashtra.
- Samvardhana Motherson International: Opened a new automotive lighting facility in Sanand, Gujarat, through a 50:50 joint venture with Marelli, strengthening its auto‑components portfolio.
- RBL Bank: Received RBI approval to reappoint Chandan Sinha as non‑executive chairman from May 2026 to May 2029.
- Edelweiss Financial Services: Promoters acquired a 1 % stake worth roughly ₹118 crore via a bulk deal.
- Pace Digitek: Awarded a purchase order worth ₹158.71 crore from Reliance Industries, boosting the stock.
- Indoco Remedies: Gained after the U.S. FDA approved its Brivaracetam oral solution.
- Mobikwik: Subsidiary Mobikwik Securities Broking received approval from BSE to start stock broking; shares jumped.
- Eris Lifesciences & Natco Pharma: Partnered to co‑launch semaglutide (a diabetes medicine) in India by 2026.
Outlook for 25 February 2026
- Technical levels: The Nifty 50 ended near the lower band of its recent trading range. Immediate resistance lies in the 25,500–25,600 zone; a break above this band could trigger short‑covering toward 25,700. On the downside, 25,300 is the first support; a decisive drop below this level may extend weakness to 25,200 or even 25,000. The Sensex faces resistance near 82,800–83,000 and support around 81,800.
- Market tone: With the IT index oversold and valuations in some sectors turning attractive, bargain hunting may emerge, but sentiment is expected to remain cautious. The expiry hangover, uncertain global trade outlook, elevated oil prices and a soft rupee could keep markets volatile. Defensive pockets like pharma, FMCG and select energy/metal names may continue to attract interest, while technology shares might remain under pressure until clarity on AI disruption and U.S. tariff policies emerges.
- Key triggers to watch:
- Details on President Trump’s proposed tariffs and any subsequent global responses.
- U.S. and European economic data (consumer confidence, PMI readings) and their impact on global risk appetite.
- Movement in crude oil and the rupee.
- Institutional flows-FIIs were recently net buyers, but any reversal could affect momentum.
- Stock‑specific catalysts such as corporate announcements, new orders or regulatory approvals.
Overall tone: Expect a choppy and range‑bound session with a slight negative bias until there is clarity on global trade policy. Traders are likely to employ a sell‑on‑rise strategy in technology stocks and rotate into defensives and export‑linked themes.
Disclaimer
The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Lemonn (Formerly known as NU Investors Technologies Pvt. Ltd) do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
