IT stocks lead rebound; Nifty reclaims 25,500 after Tuesday’s sharp selloff

Market Overview - Markets opened higher on February 25, with technology stocks leading the recovery after a previous selloff triggered by Anthropic's announcement of a new AI tool [1][2] - The Sensex opened at 82,530.12 and was trading at 82,711.12, up 485.20 points or 0.59 percent, while the Nifty 50 opened at 25,512.60 and was quoting at 25,580.05, up 155.40 points or 0.61 percent [1] IT Sector Performance - The IT index experienced significant losses in the previous session, shedding over 4.45 percent, with major companies like Infosys, HCL Technologies, TCS, and Tech Mahindra attempting a sharp reversal on Wednesday [2][3] - Infosys was the top gainer in the Nifty, trading at ₹1,312.40, up 2.89 percent, while HCL Technologies rose 2.71 percent to ₹1,375.50, TCS gained 2.30 percent to ₹2,632.80, and Tech Mahindra was up 2.19 percent at ₹1,374.80 [3] Analyst Insights - Dr. V K Vijayakumar from Geojit Investments noted that the sustained selling in IT stocks may be over, indicating a potential rebound in the segment, and highlighted collaboration opportunities for Indian IT firms with Anthropic's new AI tool [5] - Fund flow data showed Foreign Institutional Investors (FIIs) as net sellers at ₹102.5 crore, while Domestic Institutional Investors (DIIs) invested ₹3,161.2 crore, suggesting a mixed sentiment in the market [5] Technical Analysis - Shrikant Chouhan from Kotak Securities indicated that a fresh selloff could occur if the market breaches the 200-day Simple Moving Average or levels of 25,300/82,000, while a bounce back could happen if it trades above these levels [6] - Hariprasad K pointed out that the Nifty 50 breached key support levels of 25,500 and 25,350, reflecting heightened selling pressure, and continues to trade below its 20, 50, and 100-day EMAs, indicating sustained downside pressure [6] Sector-Specific Concerns - Vijayakumar raised concerns regarding solar panel exports to the US facing a 125 percent import duty, which could severely impact exporters and highlighted the vulnerability of this sector to US policy changes [6]