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Below the Daily Market Commentary for February 25th 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Equities markets advanced on Wednesday, supported by positive global cues, even as, risk sentiment remained cautious against the backdrop of trade-related uncertainties. Domestically, sentiment was dampened after the US Commerce Department imposed a preliminary duty of 126% on solar imports from India, citing unfair manufacturing subsidies that enabled exporters to undercut US producers. Following the sharp selloff in the previous session, Indian equities closed slightly in the green (+0.2%). Early buying interest supported the index in the first half of the session, led by strength in Metals and IT stocks, aided by short covering and selective value buying. Broader markets remained relatively supportive, with the Nifty Midcap 100 and Smallcap 100 advancing 0.6% and 0.9%, respectively, indicating selective participation beyond frontline stocks. On the sectoral front, the Nifty IT index staged a recovery, snapping its five-session losing streak and gaining over 2%. The rebound tracked a recovery in global and US technology stocks, alongside Anthropic’s announcement of new enterprise partnerships, which helped alleviate concerns around AI-led disruption. That said, sentiment toward the sector remains fragile, with investors maintaining a selective approach amid ongoing global growth uncertainties. Looking ahead, investors will closely monitor the release of India’s new GDP series scheduled for Friday, which could provide further clarity on domestic growth momentum. Overall, while the undertone remains cautious with selective sectoral participation, markets are likely to continue trading within a broader range in the near term, guided by macro developments and sector-specific catalysts.

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