IT Rally Fades as FMCG, PSU Banks Drag Nifty Below 25,450

IT-led opening push gives way to a sub-25,450 afternoon print

At 13:50 IST on February 26, 2026, Nifty traded below 25,450 after an opening move led by information technology stocks.

Around 09:31 IST, benchmark indices opened in the green, with IT driving the first leg higher. By about 10:38 IST, that IT move extended on the global technology reaction to Nvidia earnings, and large software stocks stayed positive.

In afternoon trade, momentum weakened and the index slipped below 25,450 while bank and realty shares turned soft. The intraday pattern stayed clear: early IT strength, then fading support from the rest of the market.

FMCG and PSU-bank pressure overtakes global-tech spillover in index weighting

The benchmark shift was driven more by sector weights than by the opening headline move. The early rise was concentrated in IT, and participation outside that segment remained limited.

When FMCG and PSU-bank stocks came under pressure together, the drag on index points became broader and heavier than the IT rebound could offset. Market breadth also showed this pattern, with gains not sustaining across major groups and declines in domestic heavyweights continuing into the afternoon.

The break below 25,450 reflected a failed leadership transfer, where one supportive segment could not absorb selling in several index-heavy segments at the same time.

Leadership handoff fails when the rebound pocket remains in repair mode

• Main view: The session looked like a failed leadership transfer, not a stable rotation. IT started with positive momentum but remained in technical repair, while earlier PSU-bank leadership was already in pullback after an extended run.
• Alternative view: The decline can still be temporary profit booking if global technology follow-through stays strong and banks stabilise later in the session.
• Invalidation condition: This view fails if Nifty reclaims 25,450 and sustains above it into the close, with PSU-bank losses reversing and IT leaders closing back above their 20-day averages.

Cross-sector trend matrix shows shallow support despite green IT prints

The technical snapshot below is based on the close of February 25, 2026, one session before the February 26, 2026 market move discussed above.

The cross-sector setup was uneven. IT names showed positive daily change but stayed below both moving averages, with low RSI readings, which indicated bounce behaviour inside a weak trend structure.

SBIN showed a negative daily change while remaining above both averages with a high RSI, fitting a pullback after a strong earlier run. HINDUNILVR stayed above both averages with a mid-range RSI, indicating steadier but limited support.

Signal confidence stays conditional while close-level behavior remains unresolved

Signal confidence remained conditional because intraday structures can still reverse near the close.

The alternative reading remained simple: this could be short-term profit booking if global technology strength continued and banking pressure eased in the final hour.

The working thesis failed under a clear test: Nifty reclaiming and sustaining above 25,450 into the close, PSU-bank losses reversing, and major IT names recovering above near-term averages.

On reliability, sector rotation carried the strongest fresh trigger in this session, while stock-specific and macro-policy tracks did not show an equally strong, time-matched catalyst.