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Informist, Tuesday, Feb. 24, 2026

 

By Eshitva Prakash

 

MUMBAI – The benchmark equity indices are expected to extend losses Wednesday as increasing uncertainty around US import tariffs is likely to adversely impact investor sentiment, analysts said. There is uncertainty about the US policy direction on tariffs going forward, with some analysts speculating that US President Donald Trump will find other ways to impose blanket tariffs again. Investors will likely adopt a sell-on-rise approach, technical analysts said.

 

The confusion around US import tariffs deepened after the new global tariffs took effect at 10%, despite Trump's announcement to raise levies to 15%, according to media reports. There has been no directive to increase the levies, the BBC reported. "Trump and tariffs are a never-ending saga," Alok Churiwala, managing director at Churiwala Securities, said. Investors are spooked not just by Trump's snap decision to impose global tariffs, but also by the lack of a clear indication of when this situation will be resolved, he added.

 

"The US Supreme Court's decision to scrap reciprocal tariffs may have given markets some hope, but these gains were unsustainable as the back and forth between the US President and the apex court hurt investors' hopes of a quick relief from tariffs," Pankaj Karde, executive vice president of institutional sales and trading at BOB Capital Markets, said. "This turbulence in global trade will take centre stage in setting investor sentiment," the analyst said.

 

Analysts are waiting for Trump's State of the Union address later in the day and are looking for cues on the unfolding tariff situation. Additionally, the US President's comments on what the new global tariff rates would mean for countries that already have a trade deal in place with the US will be an important factor to watch. The European Union froze the trade deal with the US that it had struck last year following the US Supreme Court verdict. Donald Trump has warned countries against backing away from trade deals and threatened higher tariffs on them.

 

Shares of information technology companies will remain volatile as investors grapple with new developments in artificial intelligence. "AI challenges are definitely one of the biggest reasons why the markets are under pressure globally," Churiwala said. The Nifty IT index ended at its lowest levels since August 2023 after a slide in US software stocks, triggered by Anthropic's claim that its Claude Code tool could be used to modernise legacy systems running Common Business-Oriented Language, an important computer language for several domestic IT majors. Additionally, a report by Citrini Research over the weekend said rapid AI development could hurt the broader US economy and lead to 10% unemployment.

 

The technical view on information technology company does not inspire much confidence either. "The IT index is trading in a short-term oversold territory and the possibility of some bounce-back cannot be ruled out at this juncture; although the overall chart structure is negative and any bounce-back will face strong resistance around 31000-31500 spot levels," Vipin Kumaar, derivatives and technical analyst at Globe Capital Market, said. "At this juncture, we suggest traders wait for price stability before initiating fresh positions."

 

Tuesday, the Nifty IT index ended 4.7% lower at 30053.50 points.

 

Some analysts have also cited the US-Iran conflict as a reason for their bleak outlook on the equity market, while others said investors have already discounted the event from their strategies. "We have been in a war-like situation for several months. I don't think that other than the impact on crude oil prices, there are a lot of reasons why investors would give it much thought," Karde said.                 

 

However, Churiwala believes that a drawn-out conflict can cause significant trouble for the Indian economy. "While a short conflict may not be much of an issue, a long conflict between the two nations will inevitably push crude oil prices higher, running up our (India's) crude bill," the analyst said. At 1731 IST, the April Brent crude futures contract was trading at $71.33 per barrel. In the last seven days, the contract has risen almost 4%, and over the last 30 days, it has risen 14%.   

 

The Nifty 50 is expected to find support at around 25350 points and face resistance at 25500, Shrikant Chouhan, head of equity research at Kotak Securities, said in a note. On Tuesday, the 50-stock index ended at 25424.65 points, down 1.1%. The BSE Sensex ended at 82225.92 points, down 1.3%.  End

 

Edited by Saji George Titus

 

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