Sensex, Nifty post strong gains led by recovery in IT stocks

Mumbai, Feb 25
The Indian equity markets showed strong gains on Wednesday led by IT stocks, tracking an overnight recovery of tech stocks on Wall Street in the US.

As of 9.30 am, Sensex added 559 points, or 0.69 per cent, to reach 82,785, and Nifty gained 157 points, or 0.62 per cent, at 25,582.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 added 0.27 per cent, and the Nifty Smallcap 100 gained 0.46 per cent.

All major sectoral indices traded in the green. Nifty IT was the major gainer, up 1.91 per cent. Nifty metal surged by 1.43 per cent.

Analysts said that the overall sentiment is expected to remain cautious amid persistent US–Iran geopolitical tensions and firm crude oil prices.

Meanwhile, ongoing concerns around AI-driven disruptions in global technology stocks are weighing on broader risk appetite, they added.

On Tuesday, coinciding with the monthly derivatives expiry, the Nifty closed sharply lower, shedding 259 points to settle at 25,459.

The sharp selloff eroded about Rs 2.85 lakh crore in investor wealth among BSE-listed companies.

In the near term, the 200-DEMA, currently around 25,240, is expected to serve as a critical support level, while the 25,640–25,770 zone overhead is likely to cap any pullback attempts, acting as an immediate resistance band, said Devarsh Vakil, Head of Prime Research at HDFC Securities.

Immediate support for Nifty is placed at 25,300 level, while resistance is anchored at 25,600-25,700 range, market watchers said.

Also, immediate support for Bank Nifty is positioned in the 60,900–60,600 zone, while resistance is placed around 61,500–61,700 zone, they added.

In Asian markets, China's Shanghai index advanced 0.87 per cent, and Shenzhen gained 0.94 per cent, Japan's Nikkei edged up 1.44 per cent, and Hong Kong's Hang Seng Index gained 0.46 per cent. South Korea's Kospi added 2.33 per cent.

The US markets ended in green overnight as Nasdaq edged up 1.05 per cent. The S&P 500 gained 0.77 per cent, and the Dow Jones added 0.76 per cent.

On February 24, foreign institutional investors (FIIs) net sold equities worth Rs 103 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 3,161 crore.