Market Wrap

Indian equity markets witnessed a sharp risk-off session on 25 February 2026, pressured by renewed global tariff concerns and weak overseas cues. After opening with a significant gap down, the Nifty50 extended losses throughout the day and even tested its crucial 200-day simple moving average (200-DSMA) intraday a key long-term technical support watched by institutional investors. The index eventually settled near 25,425, down 1.12%, signaling a decisive shift toward defensive positioning.

The sell-off was led by export-oriented sectors, with IT stocks bearing the brunt. The Nifty IT index plunged more than 4% intraday amid worries over a global demand slowdown, currency volatility, and fresh tariff-related commentary affecting outsourcing revenues. Broader markets also declined in tandem, indicating widespread risk aversion rather than isolated sectoral weakness.

Global cues remained distinctly negative. US equities closed sharply lower overnight amid escalating geopolitical tensions and uncertainty around trade policy direction. The weakness spilled into Asian and European markets, which traded firmly in the red. Meanwhile, rising US bond yields and sticky inflation have dampened hopes of aggressive rate cuts, further weighing on risk assets worldwide.

What's Ahead

Markets are now hovering near critical technical support zones, making the upcoming sessions pivotal for near-term direction. Investors will closely monitor developments around US tariff policies, commentary from Federal Reserve officials, and key macro data releases, including US PCE inflation and India’s GDP figures.

A stabilization in global sentiment or a slowdown in FII selling could trigger a technical rebound from the 200-DSMA. However, persistent weakness in IT stocks, elevated bond yields, and fragile global equity trends may keep volatility high in the near term. Until clearer signals emerge, markets are likely to remain headline-driven and sensitive to global developments.

Institutional Activity

Market Snapshots

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended sharply lower at 25,424.65, breaking its recent upward momentum amid intense selling in IT heavyweights and select large-cap names. The index remained under pressure throughout the session after a weak opening, forming a bearish structure and closing near the lower end of the day’s range — a sign of sustained selling interest. Momentum indicators have weakened, with RSI slipping toward the 45 mark, indicating fading bullish strength but not yet entering oversold territory. Immediate supports are placed at 25,259 and 25,159; a breach below these levels could accelerate downside toward the psychological 25,000 zone. On the upside, resistance is seen at 25,581 followed by 25,680, where selling pressure may re-emerge. Unless the index reclaims these resistance levels decisively, the near-term bias is likely to remain cautious with a risk of further consolidation to downside.

Bank Nifty

The NIFTY BANK closed at 61,047.30 with a mild decline, underperforming early in the session but showing relative resilience compared to the broader market. Persistent weakness in major private banks offset gains in PSU and mid-sized lenders, keeping the index range-bound with a negative bias. Technically, the index is showing signs of momentum loss, with RSI slipping below the 60 mark, suggesting waning bullish strength after a recent upmove. Immediate support lies at 60,567 followed by 60,270; a break below these levels could trigger deeper profit booking. On the upside, resistance is placed at 61,527 and 61,824, which need to be crossed decisively to revive bullish momentum. Until then, the index may continue to trade in a volatile consolidation phase with stock-specific action.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index ended at 28,295.10, declining amid weakness in key banking and insurance stocks despite selective buying in NBFCs and power-financing companies. The index displayed a gradual downward bias through the session, reflecting cautious sentiment in the broader financial space. Market breadth remained weak, reinforcing the negative undertone. Technically, the index is approaching crucial support zones at 28,040 and 27,890; holding above these levels is important to prevent further downside extension. A breakdown could open room for sharper corrective moves. On the upside, resistance is placed at 28,527 and 28,678, where recovery attempts may face supply pressure. The near-term outlook remains neutral-to-bearish unless the index reclaims higher resistance levels with strong participation from banking heavyweights.

Sensex

The BSE SENSEX closed at 82,225.92, declining sharply as heavy selling in IT stocks, along with weakness in telecom and select financial names, dragged the benchmark lower. The index formed a broad bearish candle and remained under pressure throughout the session, reflecting strong institutional selling. Market breadth was decisively negative, indicating widespread weakness beyond just a few sectors. Although defensive buying in power, FMCG, and select large caps helped limit losses, the overall technical structure has weakened. Near-term support is expected around the 81,800–81,500 zone; a breach below this range could lead to further downside. On the upside, resistance is likely near 82,800 followed by the 83,200 area, where recovery attempts may encounter selling pressure. The short-term trend remains cautious, with volatility likely to stay elevated unless global cues improve and IT stocks stabilize.