Indian IT shares experienced a sharp decline on Tuesday, extending a significant selloff driven by concerns over AI-led disruption. Analysts are divided on whether to buy the dip or await further consolidation, with some suggesting AI integration and legacy system management still require IT service providers.
Institutional investors trimmed stakes across nine NSE midcap stocks in the December 2025 quarter, reflecting portfolio rebalancing and selective profit booking. Companies such as Kaynes Technology, ITC Hotels and Dixon Technologies saw notable declines in holdings, signalling shifting institutional sentiment despite broader market participation.
Real estate stocks tumbled on Tuesday as sharp IT selloff renewed worries about commercial property demand and urban housing appetite. The Nifty Realty index dropped 3%, with Prestige Estates, Lodha, Signatureglobal and Godrej Properties among the biggest losers, reflecting the sector’s broader underperformance in 2026.
Zinc prices climbed 2% to Rs 332 on Multi Commodity Exchange of India Limited, supported by favourable global cues and tight supply-demand dynamics. Analyst Ajit Mishra expects momentum to resume after Chinese markets reopen, with technical indicators signalling continued strength above key support levels and buy-on-dips opportunities.
The Nifty IT index has crashed over 21% in February—its worst monthly drop since 2008—as fears of AI-driven disruption roil tech stocks. Heavyweights like Infosys, HCLTech and TCS tumbled sharply, pushing valuations to multi-year lows. Experts warn that despite cheap valuations, uncertainty around long-term growth calls for caution.
Sify Infinit’s offering will comprise a fresh issue of shares worth 25 billion rupees and a secondary sale of about 12 billion rupees, according to its draft prospectus.
Corporate earnings in India are poised for a stronger FY27, driven by nominal GDP growth and rupee depreciation, according to Manish Gunwani. While AI disruption is currently influencing market sentiment more than earnings, domestic and export-oriented sectors are expected to benefit from the overall economic uptick.
Australian shares saw little change as cautious investors awaited key domestic inflation data and clarity on trade tariffs. Losses in heavyweight banks offset gains in miners, with financials, technology, and real estate sectors declining. Miners and energy stocks provided support, with BHP hitting a record high.
Shree Ram Twistex IPO was subscribed 30% on Day 2, with the retail portion oversubscribed more than two times while QIBs remained absent. The grey market premium rose to 9%, indicating a potential listing around Rs 113. The Rs 110 crore issue closes on February 25.
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