Nifty Struggles Near 25,400 as IT Sell-Off Weighs on Markets on Feb 24; L&T Shares Decline

Indian benchmark indices traded under pressure during the final session of the February derivatives series, with selling across information technology and select heavyweight stocks weighing on sentiment. 

Despite gains earlier in the series, the Nifty slipped towards important technical levels as investors reacted to sector-specific concerns and broader market weakness, leading to a sharp decline in frontline stocks, as per news reports.

Market Performance During F&O Expiry

The Nifty index struggled to maintain momentum and traded around the 25,365 mark during the session. The final trading day of the February futures and options series added volatility to market movements, even though the index had gained more than 400 points during the broader series.

Meanwhile, the Sensex declined by roughly 1,300 points, reflecting widespread selling across large-cap stocks.

Key Support Levels in Focus

Market participants are closely watching immediate support zones as the index approaches technically important levels. 

The 25,600 mark and the previous week’s closing level near 25,571 are seen as near term reference points, while 25,500 is viewed as a psychological support area that traders are monitoring for directional cues.

IT Stocks Lead the Decline

Weakness in information technology stocks emerged as the primary drag on benchmark indices. The Nifty IT index fell more than 5%, reflecting renewed concerns about global technology spending and evolving artificial intelligence capabilities.

Investor sentiment was affected after developments suggesting that advanced AI coding tools could reduce the cost and complexity of upgrading legacy software systems, potentially altering demand dynamics for traditional IT services.

Heavyweight Stocks Add Pressure

Several large-cap stocks contributed significantly to the downside movement in the Nifty 50. Larsen & Toubro shares declined close to 4%, while Bharti Airtel fell around 3% following developments related to its NBFC expansion plans and a proposed ₹20,000 crore funding initiative.

Other major stocks, including Infosys, ICICI Bank and HCLTech, also weighed on the index. Shares of Eternal recorded sharper losses, declining nearly 5% during the session.

Broader Market Sentiment

The ongoing correction reflects a mix of derivative expiry-related positioning and sectoral rebalancing. Investors appear cautious amid global technology uncertainties and shifting expectations around AI-led changes in business models, particularly within the IT services space.

Read More: Fractal Industries Shares List at 6% Premium on BSE SME Following ₹49 Crore IPO.

Conclusion

Market movements during the session underline the sensitivity of benchmark indices to sector-specific developments and heavyweight stock performance. As the February derivatives series concludes, traders are likely to watch technical support levels and global cues closely, while near-term direction may depend on stabilisation in IT stocks and broader investor sentiment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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