Indian Markets Bounce Back: Nifty Reclaims 25,581 Level as IT Stocks Lead Recovery

February 25, 2026 – After a grueling session on Tuesday that saw the benchmark indices bleed over 1%, the Indian equity markets staged a spirited recovery in early trade on Wednesday. The NSE Nifty 50 climbed 157.05 points to reach the 25,581.70 mark, while the BSE Sensex jumped 558.79 points, trading at 82,784.71.

This rebound comes as a relief to investors who were rattled by yesterday’s sharp sell-off, which was triggered by global concerns over artificial intelligence-led disruptions and high-stakes geopolitical shifts.

Key Drivers of the Morning Rally

The market’s “green” opening was primarily fueled by three major factors:

1. IT Sector Resurgence: The Information Technology index, which bore the brunt of Tuesday’s losses, emerged as the top performer. Bargain hunting in heavyweights like Infosys, TCS, and HCL Tech provided the necessary muscle to the Nifty.
2. Global Cues: Wall Street closed in positive territory overnight, driven by a recovery in U.S. technology stocks. This optimism spilled over into Asian markets, with Japan’s Nikkei 225 and South Korea’s Kospi trading significantly higher.
3. Institutional Support: Despite minor offloading by Foreign Institutional Investors (FIIs) worth ₹102 crore on Tuesday, Domestic Institutional Investors (DIIs) showed immense faith by pumping in ₹3,161.22 crore, effectively cushioning the market’s fall and setting the stage for today’s jump.

Sectoral Performance and Top Gainers

The rally was broad-based, with the BSE IT Index gaining over 2% in the initial hour. Other sectors like Power and Aviation also showed strength.

Expert Take: Easing “AI Scare” Trade

Market analysts suggest that the initial panic regarding AI-driven volatility—often dubbed the “Anthropic shock”—is beginning to subside.

“We are seeing a transition from a ‘scare trade’ to a ‘hope trade,'” says Ajay Bagga, a prominent banking and market expert. “While global uncertainties like U.S. tariff policies and Iranian tensions remain in the background, the fundamental strength of the Indian economy and rising corporate earnings are encouraging investors to buy the dip.”

Global Commodities and Currency

While equities soared, other asset classes remained volatile:

• Brent Crude: Rose by 0.76% to $71.31 per barrel, keeping oil marketing companies under a watchful eye.
• Gold & Silver: Safe-haven demand remains elevated. Gold prices in India hovered around ₹1,60,750 per 10 grams, while Silver surged over 2%.

Looking Ahead

Investors are now looking toward the U.S. State of the Union address and further signals on inflation for long-term direction. For the Nifty, technical analysts point to 25,650 as a crucial resistance level. A sustained move above this could open doors for the 25,800 mark.