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Informist, Thursday, Feb. 12, 2026

 

By Eshitva Prakash

 

MUMBAI – Benchmark indices are expected to be in range Friday as some analysts expect further turbulence for information technology stocks, while some others expect the steep correction in these stocks to provide a comfortable entry-point for investors. Despite the fall in benchmark indices Thursday, the overall market sentiment remains positive after India and the US signed the framework of an interim trade deal over the weekend.

 

However, until official sources do not provide favourable details on the interim trade deal, a rally is unlikely, several analysts said. There have been concerns around the upcoming deal, which is expected to be signed in March, particularly about which sector will attract the $500-billion purchases that India plans on investing in the US. The fact-sheet related to the India-US trade deal was modified on Wednesday, with the text now saying that India intends, rather than has "committed", to make a purchase of $500 billion.

 

The formalisation of the deal between the two countries will also provide clarity on the agricultural-business front. In the earlier version of the document, the fact sheet suggested that India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including pulses. However, the new fact sheet has dropped the reference to pulses, but still maintains that India will cut tariffs on dried distillers' grains, red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products.

 

Analysts' views are divided over near-term movement in information technology stocks following a deep sell-off in stocks of software-as-a service companies globally. "Artifical intelligence is creating a structural shift in Indian IT services by reducing timelines and automating tasks, putting pressure on the traditional headcount-based outsourcing model, Vinod Nair, head of research at Geojit Investments, said in a note. IT stocks have been under pressure since US-based Anthropic launched Claude Cowork, which can work in coding-related activities through integrated plugins. 

 

Moreover, Palantir's recent earnings commentary has suggested that its artificial intelligence platform may reduce work for third-party enterprise software companies. The company has said that clients are moving away from traditional pay-per-seat software models and adopting AI-driven alternatives. Even enterprise resource planning implementation, as highlighted by Palantir's recent focus, is now vulnerable to AI disruption, Nair said. The analyst believes that in the coming quarters, AI adoption could create headwinds for deal wins, potentially impacting the top line of IT players.

 

While near-term volatility is expected in IT companies, overall, domestic information technology companies stand to gain from participating in the AI-trade, Rishubh Vasa, a research analyst from Indsec Securities and Finance, said. "These AI tools haven't reached users yet and are still mainly used by companies for productivity-linked reasons," Vasa said. The analyst expects that Indian IT services are likely to benefit in the long term from AI tools, as they enhance their own service offerings tailored to the needs of companies using these tools.                     

 

Shares of textile manufacturers will be in focus after Union Minister of Commerce and Industry Piyush Goyal said that under the bilateral trade agreement, there will be a provision for India to import cotton and yarn for processing from the US at zero duty and further export to the US at zero-reciprocal tariff, same as that in the US-Bangladesh trade deal. Textile stocks had been under pressure after the US Tuesday trimmed the reciprocal tariffs on Bangladesh by 100 basis points to 19%.

 

The Nifty 50 is expected to face resistance at the psychologically crucial level of 26000 points, Rupak De, technical analyst at LKP Securities, said. On Thursday, the Nifty 50 ended 0.6% lower at 25807.20 points and the BSE Sensex ended 0.7% lower at 83674.92 points. The 50-stock index is expected to find support at 25750 points, the analyst said.

 

Among a slew of earnings released after market hours Thursday, investors will react to earnings of Hindalco Industries. The mining major reported a net profit INR 20.49 billion, missing the Street's view by a wide margin, primarily due to a high one-time cost. Coal India and Oil and Natural Gas Corp. are slated to release their earnings later in the day.  End

 

Edited by Deepshikha Bhardwaj

 

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