Robust Gains in Sensex and Nifty Driven by IT Stocks Recovery
Synopsis
On February 25, the Indian equity markets rallied with the Sensex and Nifty showing substantial gains fueled by a rebound in IT stocks. This recovery comes after a positive shift in tech stocks on Wall Street, although market sentiment remains cautious amid geopolitical tensions.
Key Takeaways
Sensex up by 559 points, Nifty up by 157 points.
IT stocks led the recovery following Wall Street trends.
Geopolitical tensions and oil prices remain a concern for market sentiment.
Immediate support for Nifty at 25,300, resistance at 25,600-25,700.
Foreign institutional net selling contrasted with domestic buying.
Mumbai, Feb 25 (NationPress) The Indian stock markets experienced significant gains on Wednesday, primarily driven by a rebound in IT stocks, reflecting a positive shift in tech stocks on Wall Street in the United States.
By 9:30 am, the Sensex rose by 559 points, equivalent to 0.69 percent, hitting 82,785, while the Nifty increased by 157 points, or 0.62 percent, reaching 25,582.
The main broad-cap indices mirrored these trends, with the Nifty Midcap 100 advancing by 0.27 percent and the Nifty Smallcap 100 climbing by 0.46 percent.
All key sectoral indices displayed positive movement, with Nifty IT emerging as the top performer, up 1.91 percent. The Nifty Metal index also saw a notable increase of 1.43 percent.
Analysts have indicated that market sentiment is expected to remain cautious due to ongoing geopolitical tensions involving the US and Iran, alongside elevated crude oil prices.
Additionally, there are persistent worries about potential AI-related disruptions affecting global tech stocks, which may dampen overall risk appetite.
On Tuesday, coinciding with the monthly derivatives expiry, the Nifty had a sharp decline, dropping 259 points to close at 25,459.
This sell-off translated to a significant erosion of approximately Rs 2.85 lakh crore in investor wealth among BSE-listed firms.
In the short term, analysts suggest that the 200-day exponential moving average (currently around 25,240) is anticipated to act as a crucial support level, while the 25,640 to 25,770 range may serve as immediate resistance against any potential pullbacks, according to Devarsh Vakil, Head of Prime Research at HDFC Securities.
Market watchers have identified immediate support for the Nifty at the 25,300 level, with resistance noted in the 25,600-25,700 range.
For the Bank Nifty, immediate support is anticipated in the 60,900-60,600 area, whereas resistance is projected around 61,500-61,700.
Across Asian markets, China's Shanghai index rose by 0.87 percent, with Shenzhen increasing by 0.94 percent. Japan's Nikkei climbed by 1.44 percent, and Hong Kong's Hang Seng Index gained 0.46 percent. South Korea's Kospi saw a notable increase of 2.33 percent.
In the US, markets closed positively overnight, with the Nasdaq up by 1.05 percent. The S&P 500 and Dow Jones followed suit, gaining 0.77 percent and 0.76 percent, respectively.
On February 24, foreign institutional investors (FIIs) sold equities worth Rs 103 crore, while domestic institutional investors (DIIs) were net buyers, acquiring equities valued at Rs 3,161 crore.
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Point of View
The recent performance of the Indian stock markets reflects a broader trend influenced by international dynamics. While the recovery in IT stocks is promising, the underlying geopolitical concerns remind us of the fragility of market sentiments. Investors should remain vigilant as we navigate these complexities.
NationPress
21 Jun 2026
Frequently Asked Questions
What drove the recent gains in the Indian equity markets?
The recent gains were primarily driven by a recovery in IT stocks, influenced by a positive shift in tech stocks on Wall Street.
How did the Sensex and Nifty perform in the latest trading session?
The Sensex rose by 559 points to reach 82,785, while the Nifty gained 157 points, reaching 25,582.
What are the immediate support and resistance levels for Nifty?
Immediate support for Nifty is at the 25,300 level, with resistance identified in the 25,600-25,700 range.
What is the market sentiment amid current geopolitical tensions?
Market sentiment remains cautious due to ongoing geopolitical tensions, particularly between the US and Iran.
How did foreign and domestic institutional investors impact the market?
On February 24, foreign institutional investors net sold equities worth Rs 103 crore, while domestic institutional investors were net buyers of Rs 3,161 crore.
