Pre Market: AI Fears Rock IT Stocks, Global Markets Rally on Trump Tariff Relief
1. GLOBAL MARKET SUMMARY
US Market Overnight:
- S&P 500: Closed higher on AI relief rally after initial tech sell-off
- Nasdaq: Rebounded from earlier losses, tech stocks showed signs of recovery
- Dow Jones: Gained as investors digested Trump’s tariff developments and Federal Reserve signals
European Markets (February 24, 2026 Close):
- FTSE: Finished higher as Trump’s tariffs took effect at lower than expected 10%
- DAX: Closed with gains amid positive tariff news
- CAC 40: Ended the session in positive territory
Asian Markets (February 25, 2026):
- Nikkei 225: Closed for trading holiday
- Hang Seng: Gained as regional markets showed strength
- KOSPI: Hit fresh highs amid regional gains after Wall Street’s AI relief rally
- Shanghai Composite: Traded positively
2. KEY HEADLINES & EVENTS (Last 16-17 Hours)
Government Announcements (India)
- RBI on Lending Rules: RBI Governor Malhotra indicated the central bank is not looking to revisit lending rules for proprietary traders and brokers
- RBI Deputy Governor Statement: Poonam Gupta stated India’s economy is now more resilient to internal and external shocks, fostering macroeconomic stability and an improving growth trajectory
- NSE Technical Upgrade: NSE to shift to nanosecond response time from April 11, targeting 100 million trades per second
- NSE Margin Hike: Introduced 15% margin hike on 18 stocks from March 2026 F&O series onwards
- SEBI Initiatives: Rolled out AI-generated calls for ‘SEBI Check’, with investors potentially getting multilingual awareness outreach
Company Results & Announcements (India)
Major Corporate Developments:
- Government Divestment: Government to divest up to 4% stake in IRFC via offer for sale at Rs 104 per share; divestment begins with 2% stake sale, with additional 2% green shoe option
- IDFC First Bank: Paid Rs 583 crore to Haryana government despite ongoing financial fraud investigation; bank confirmed full payment of principal and interest
- BookMyForex Data Breach: Suffers major data breach; thousands of customers reportedly defrauded, with unauthorized transactions on forex cards
- Banks Liquidity Pressure: Banks confronting mounting liquidity pressures as loan portfolios expand faster than deposit bases; liquidity coverage ratios have weakened across institutions
- Four Stocks to Exit F&O: NSE circular indicates four stocks to be out of F&O list from April end; existing contracts with expiries in February, March, and April 2026 will remain available
IPO Market:
- Gaudium IVF IPO: Issue ended with over 7x bids on strong NII and retail demand; allotment date likely today, February 25
- PNGS Reva Diamond Jewellery IPO: Rs 380 crore IPO opened; check price band, lot size, GMP, and key risk details
- Shree Ram Twistex IPO: Issue booked 75% on Day 2
- Clean Max Enviro Energy Solutions IPO: Issue sees weak demand, booked 45%; GMP signals flat listing
Stock-specific News:
- IRFC: In focus due to government stake sale announcement
- Voltas: Price hike expectations driving attention
- IDFC First Bank: Attention on fraud fallout and government payment
- Alembic Pharma, Lupin: USFDA approvals and regulatory developments in focus
Global News & Events
US Economic Policy:
- Federal Reserve: Fed’s Goolsbee calls for a hold on cuts as current rate of inflation is ‘not good enough’
- 10-Year Treasury Yield: Little changed as markets weigh Trump tariff escalation
- Trump’s Tariffs: US Supreme Court ruled Trump’s tariffs as ‘illegal’; tariffs taking effect at lower than expected 10% instead of feared higher levels
Corporate News:
- IBM: Shares rebounded 5% after analysts called AI-driven sell-off an overreaction; stock hit intraday high of $235.73 during early market session
- Novo Nordisk: Shares down 16% after next-gen obesity drug CagriSema failed to match Eli Lilly’s Zepbound in head-to-head trial, losing its crown as ‘king of weight loss’
- Warner Bros. Discovery: Increased offer to $31 per share in cash for Paramount
- AMD: Among stocks making big moves midday
- Workday, Cava, Lucid Group: Stocks making biggest moves after hours
Commodities:
- Gold: Slips from three-week high on dollar strength and profit-taking; price climbing to $5,200/oz context
- Silver: Trading above $88 an ounce
- Oil: Prices hold near seven-month highs with US-Iran talks in focus
Geopolitical:
- US-Iran Tensions: Trump says Iran wants a deal more than the U.S. as American forces build up in oil-rich Middle East; next round of negotiations in Geneva
- Trade Policy: Markets digesting developments around US trade policy and tariff implementation
AI Disruption:
- Indian IT Sector: Nifty IT index plunged 4.7% following AI company Anthropic’s blog post triggering significant sell-off over concerns about AI’s potential to automate legacy system maintenance
- AI Impact on Markets: Analysts debate whether AI disruption poses risk or opportunity for tech sector; violent software sell-off pauses
- Global AI Narrative: Markets showing signs of relief rally after initial AI-driven tech selloff
3. WHAT TO WATCH TODAY
Scheduled Earnings Releases:
- KSB: Results scheduled for February 25
- Supha Pharmachem Ltd: Results expected February 25
- Sanofi India: Results due February 25
- Vasudhagama Enterprises: Results scheduled February 25
- AJC Jewel Manufacturers: Results due February 25
Corporate Events:
- IRFC Offer for Sale: Government divestment opens for non-retail investors on Wednesday and retail investors on Thursday at floor price of ₹104 per share
- Gaudium IVF IPO Allotment: Allotment date likely today, February 25; investors can check status through BSE, NSE, and official IPO registrar portals
- PNGS Reva Diamond Jewellery IPO: Ongoing subscription window
Expected Economic Data Releases:
- US State of the Union Address: Trump to deliver address; markets watching for economic policy announcements and potential new tax cuts through budget reconciliation
- Flash PMI Readings: Market focus on upcoming economic indicators
- FOMC Minutes: Fed policy meeting minutes likely to be watched
- US Advance GDP Numbers: Economic growth data expected
- Global Trade Developments: Ongoing US-Iran talks and trade policy developments remain in focus
Regulatory Events:
- SEBI Oversight: Regulator continues to emphasize robust supervision as mutual fund industry scales
- RBI Policy: Markets watching for any signals on monetary policy and banking sector regulation
4. SUMMARY
Indian markets are likely to open amid volatility as the IT sector continues to grapple with AI disruption fears, with the Nifty IT index having plunged 4.7% following concerns raised by Anthropic about AI’s potential to automate legacy system maintenance. However, global markets have shown signs of a relief rally, with European stocks finishing higher as Trump’s tariffs took effect at lower than expected 10%, and Asian indices like KOSPI hitting fresh highs. The domestic market will also digest the government’s decision to divest up to 4% in IRFC via offer for sale at Rs 104 per share, while corporate developments including IDFC First Bank’s Rs 583 crore payment to Haryana government despite an ongoing fraud investigation and BookMyForex’s major data breach could weigh on sentiment.
On the global front, markets are reacting to a complex mix of signals: the US Supreme Court’s ruling on Trump’s tariffs, Federal Reserve’s cautious stance on rate cuts with Goolsbee emphasizing that inflation is “not good enough,” and ongoing geopolitical tensions with Iran. Commodities are showing mixed trends with gold slipping from three-week highs on dollar strength while oil holds near seven-month highs as US-Iran talks progress. Corporate news will continue to drive stock-specific movements, with several IPOs including Gaudium IVF, PNGS Reva Diamond Jewellery, and Clean Max Enviro Energy Solutions attracting investor attention. The IPO market appears to be seeing differentiated demand, with some issues like Gaudium IVF receiving strong subscriptions while others like Clean Max Enviro witness weak response.
Investors will also be watching the earnings calendar with KSB, Supha Pharmachem, Sanofi India, and others scheduled to announce results today. The banking sector’s liquidity concerns, as deposits lag credit growth, could emerge as a key theme, while regulatory developments from SEBI and RBI will remain in focus. Global market sentiment, influenced by the interplay of AI disruption fears, tariff developments, and central bank signals, is likely to guide domestic market direction in today’s trading session.
Details for information purposes only. Don’t treat this as financial advice.