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Below the Quote on Weekly Market Outlook 27th February 2026 from Vinod Nair, Head of Research at Geojit Investments Limited

"Market sentiment remained cautious and volatile, influenced by changing global cues, renewed tariff uncertainty, and concerns over AI-driven disruption. Initial support from the U.S. Supreme Court’s ruling against Trump’s reciprocal tariff policy—along with softer U.S. dollar trends and declining Treasury yields—was overshadowed by pronounced weakness in IT stocks amid rising margin concerns and structural headwinds linked to AI. Sector rotation was notable, with defensives and domestically focused segments gaining traction, while real estate and IT sectors faced sustained pressure due to worries around AI-driven business-model disruptions.

A lack of progress in U.S.–Iran nuclear discussions and ongoing AI-related uncertainty continue to support safe-haven flows. Domestically, a risk-off tone prevails as the earnings season tapers and global macro factors take precedence. Although IT stocks saw selective bargain-buying after recent corrections, the broader trend remains subdued. With FII flows staying cautious and volatility likely to persist, markets are expected to maintain a narrow consolidation range. Meanwhile, today’s better-than-expected India GDP print, signalling resilient underlying economic activity, offers a measure of domestic support even as global risks remain elevated."

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