Indian shares to open higher on potential rebound from Tuesday’s steep drop

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A man looks at a screen outside the Bombay Stock Exchange (BSE) building in Mumbai

A man looks at a screen outside the Bombay Stock Exchange (BSE) building in Mumbai, India, February 2, 2026. REUTERS/Francis Mascarenhas

Reuters

Wed, 25 February 2026 at 11:36 am GMT+9 2 min read

Feb 25 (Reuters) - Indian benchmark shares are likely to open higher on Wednesday, with analysts anticipating a tactical rebound after Tuesday’s sharp, IT-led selloff due to ‌renewed worries over AI-related disruption.

The Gift Nifty futures were trading at 25,671.5 points as ‌of 8:00 a.m. IST, indicating the benchmark Nifty 50 will open above Tuesday’s close of 25,424.65.

Other Asian markets gained ​1.1%, while Wall Street equities rebounded overnight after San Francisco-based startup Anthropic unveiled 10 new ways for business customers to use its AI plugins, reviving enthusiasm that AI would boost business profitability across certain sectors. [MKTS/GLOB]

However, what drove optimism across Asian markets turned disquieting for Indian equities. The IT ‌index slumped 4.7% on Tuesday ⁠to a 30-month low on persistent fears that AI-driven automation could pressure project timelines and billing models, dragging the Nifty and Sensex down 1.1% ⁠and 1.3%, respectively.

IT shares are now down 21% in February as of Tuesday’s close, putting it on track for its weakest monthly performance in roughly 23 years.

“Although a short-term pullback cannot be ruled ​out, it ​is unlikely for the benchmark Nifty to sustain ​at higher levels with 25,200 and ‌25,800 levels acting as immediate support and resistance,” said Nilesh Jain, vice president and head of technical and derivatives research at Centrum Finverse.

Tariff concerns also eased a bit after India’s trade minister Piyush Goyal said New Delhi will resume talks on a proposed trade deal with the U.S. once there is more clarity, days after President Donald Trump’s tariffs were invalidated.

Goyal’s remarks ‌came after Trump’s warning to trading partners against backing ​away from recently negotiated trade deals with the U.S.

Oil ​prices hovered near seven-month highs on worries ​of the threat of a military conflict between the U.S. and Iran ‌ahead of talks between the parties scheduled ​for Thursday. [O/R]

STOCKS TO WATCH

** ​Rail Vikas Nigam secures a project worth 2.70 billion rupees from Central Railway

** HG Infra Engineering emerges as the lowest bidder for a major national highways project valued ​at 15.82 billion rupees

** Hexaware ‌Technologies expands collaboration with AWS for AI-enabled software development lifecycle capabilities

** Biocon gets ​U.S. drug regulator’s approval for Liraglutide, a drug-device combination for weight management

(Reporting by ​Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)

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