IT stocks rebound, banking stays firm, and RBI’s steady 5.25% repo rate supports sentiment

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The Indian stock market shows strong movement today. After a sharp fall in the previous session, markets recovered during early trade. The Nifty 50 trades around the mid-25,600 level. The BSE Sensex moves near the 82,000 mark. The earlier fall was mainly due to heavy selling in technology shares, which pulled the indices down by more than 1,000 points in one session.

The fall creates panic at first, but buying interest returns quickly. Investors see lower prices as an opportunity. As a result, both benchmark indices open higher and attempt to stabilise. Trading activity remains high throughout the day.

Impact of Global Technology News


Technology stocks face pressure because of global concerns related to artificial intelligence developments. Investors worry that new AI platforms could affect traditional IT service companies. Large companies such as Infosys and Tata Consultancy Services see strong price swings.

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However, fresh partnership announcements between IT firms and global AI companies reduce fear. These updates suggest that Indian IT companies are adapting to change instead of losing business. Because of this, the Nifty IT index recovers part of its losses. Volatility remains high, but panic selling slows down.

Banking and Other Sectors


Banking and finance stocks perform better than technology stocks. Loan demand remains steady, and credit growth stays stable. This gives confidence to investors. Many shift money from tech shares into banks and capital goods companies during the fall.

Industrial and infrastructure stocks also see buying. Investors expect continued government spending and private investment. This movement of money between sectors helps prevent bigger losses in the overall market.

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Reserve Bank Policy Support


The policy stance of the Reserve Bank of India continues to support market confidence. The central bank keeps the repo rate unchanged at 5.25 percent in its recent policy meeting. A steady interest rate environment reduces uncertainty for businesses and borrowers.

Lower borrowing pressure helps banks maintain margins. It also supports corporate expansion plans. Bond yields remain stable, which adds comfort to equity investors. The clear and predictable policy direction acts as a cushion during volatile sessions.

Foreign and Domestic Investment Flows


Foreign institutional investor activity remains mixed. Some sessions record selling, while others show fresh buying. February sees a return of selective foreign inflows after earlier outflows in the quarter. These inflows provide strength to large-cap stocks.

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Domestic institutional investors are continuing to make steady purchases. Mutual funds and insurance companies absorb selling pressure when foreign flows turn negative. This balance between foreign and domestic money prevents extreme downside moves.

Technical Levels and Market Mood


Market experts observe key levels closely. Support for Nifty appears near 25,200. Resistance stands around 25,800. As long as the index stays above support, traders expect consolidation instead of a deep correction.

Options data shows higher hedging activity. Traders protect positions due to sudden news-driven swings. Volatility indicators rise compared to the previous week, reflecting uncertainty. Even with this, overall sentiment shifts from fear to cautious optimism during the session.

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Broader Economic Context


India’s economy remains stable. Inflation is under control, and growth outlook remains positive. Company earnings for the next few quarters look healthy. This supports long-term confidence in the market. Investors watch updates from big companies to understand future direction.

Global news still affects short-term market movement. Updates on technology, trade talks, and global interest rates influence daily trading. Even with global uncertainty, strong domestic factors help keep the market steady.

Closing Sentiment


By February 25, 2026, the Indian stock market shows strength after a sharp fall. The Nifty 50 stays near 25,600, and the Sensex remains around 82,000. Technology stocks recover after heavy selling. Banking and capital goods stocks help balance the market.

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The market adjusts to new global changes but depends on strong domestic support. Short-term ups and downs may continue, but stable policy, steady investment flows, and a healthy economy keep the overall trend firm.