On Friday, February 27, 2026, Indian stock markets opened on a weak note, with Sensex falling 1,000 points and Nifty 50 declining around 1%, reflecting caution among investors amid global and domestic uncertainties. The total market capitalisation of BSE-listed companies fell sharply, losing nearly ₹5 lakh crore, dropping from ₹468.5 lakh crore to ₹463 lakh crore.

The downward pressure was broad-based. Key sectors such as banking and financial services saw the Nifty Bank and Nifty Fin Services indices decline by nearly 1% each. Additionally, auto and FMCG stocks contributed to the negative sentiment, pulling benchmarks lower. Investors remain cautious as US-Iran nuclear talks in Geneva ended without a deal, fueling geopolitical uncertainty.

Contrasting with the overall market weakness, Information Technology (IT) stocks bucked the trend. The Nifty IT index rallied around 2.5%, with nearly all constituents trading higher. The sector has faced pressure throughout February, with a 20% decline amid concerns over AI-led disruption impacting traditional IT service models. The recent global technology selloff has also influenced sentiment, although strong earnings from companies like Nvidia underscore the long-term AI opportunity, despite short-term valuation concerns.

Across Asia, markets were generally down about 0.7%, following losses on Wall Street overnight. The US equity market closed lower even after strong quarterly results from Nvidia, widely regarded as a bellwether for AI investments. Investors expressed caution, highlighting valuation risks despite robust tech earnings.

In commodities, crude oil prices eased after hitting nearly seven-month highs. The pullback came after indirect US-Iran discussions in Geneva helped calm fears over supply disruptions, easing some pressure on energy markets.

Domestically, the benchmark indices have lacked a clear direction over the past two sessions following Tuesday’s sharp 1.1% decline. With investors awaiting fresh triggers, the market is expected to remain in a consolidation phase until new catalysts emerge, such as corporate earnings updates or policy announcements.

In summary, while Sensex and Nifty 50 faced losses due to banks, auto, and FMCG sectors, IT stocks provided a silver lining. Global developments, particularly US-Iran relations, crude oil dynamics, and the ongoing AI narrative, continue to shape investor sentiment in India. The market outlook remains cautious, with selective opportunities emerging in resilient sectors.

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