More Stories

Informist, Tuesday, Feb. 17, 2026                                      Tel +91 (22) 6985-4000

Equity Alert: Citi sees valuation gap compression in IT stocks on AI concerns

MUMBAI--0905 IST--Brokerage firm Citi expects some valuation gap compressions in the information technology sector due to artificial intelligence-linked concerns and reduction in domestic institutional investor positions. The brokerage expects volumes of IT stocks to increase, NDTV Profit posted on its social media, quoting Citi.

However, the brokerage firm has a cautious view on Indian IT services due to concerns over uncertain spending, technology changes, increasing competition, faster growth of global capability centres, and the impact of AI. The brokerage prefers Infosys and HCL Technologies among the large-cap IT stocks.

On Monday, shares of Infosys closed the day marginally lower at INR 1,365.60 on the NSE with nearly 15 million shares changing hands on the exchange. This is lower than nearly 46 million shares traded on Friday. Of the 20 brokerage reports available with Informist on Infosys, 17 have a 'buy' recommendation with an average target price of INR 1,848, while the remaining three have a 'hold' recommendation.  

Shares of HCL technologies ended 0.5% higher Monday at INR 1,461.80 on the NSE with over 2 million shares changing hands on the exchange. This is lower than over 7 million shares traded on Friday. Of the 18 brokerage reports available with Informist on HCL Technologies, nine have a 'buy' recommendation with an average target price of INR 1,854. Of the remaining nine, seven have a 'hold' recommendation with an average target price of INR 1,691 and two have a 'sell' recommendation.  (Arundathi A R)

Equity Alert: Indices seen in range; volatility likely on weekly F&O expiry

MUMBAI--0830 IST--Benchmark equity indices are seen in a range and some volatility is likely due to the expiry of the Nifty 50's weekly derivatives contracts Tuesday. Liquidity is expected to be limited globally on Tuesday as the US equity market was closed Monday on account of Presidents' Day and markets in China, South Korea, and Singapore are closed on account of the Lunar New Year holidays. 

Analysts are positive on the India-US trade deal and said investor sentiment might get a boost from the trade secretary's announcement on Monday that the US could drop 32% tariffs on India as early as this week. Commerce Secretary Rajesh Agrawal Monday said a delegation would travel to the US next week to ‌finalise the trade agreement between New Delhi and Washington. The official deal is expected to be completed by March when the two sides sign a bilateral trade agreement. 

Shares of information technology companies will be in focus once again after the Nifty IT index snapped a three-session losing run on Monday. The Nifty IT index has dropped nearly 9% over these three sessions, in the wake of the global rout of traditional software companies which face competition from artificial intelligence tools. The AI Impact Summit in Delhi is expected to provide direction for IT and IT services companies.

As the December quarter earnings season draws to a close, investors are now focussing on sectors that can outperform in the next quarter. "Earnings were decent this quarter and banks, especially, outperformed," Dhaval Patel, assistant fund manager fixed income at Axis Mutual Fund, said. "Some asset repricing played out, but overall the net interest income was good (for banks)," the analyst said. "Credit and loan book growth was a particular highlight for the quarter." The analyst also praised December quarter earnings of renewable energy companies.

At 0828 IST, the GIFT Nifty 50 indicated a slightly negative start for the Nifty 50, with the February contract of the GIFT Nifty being over 53 points lower than the Nifty 50's previous close. On Monday, the Nifty 50 index closed 0.8% higher at 25682.75 points. The BSE Sensex closed at 83277.15 points, up 0.8%.

On the global front, Japan's Nikkei 225 was down almost 1% and the Topix index was down 0.8%, falling for the third straight session. Japan on Monday reported that its economy grew an annualised 0.2% in the fourth quarter, far below the 1.6% forecast as government spending dragged on activity, according to the report. Australia's S&P ASX 200 was 0.4% higher in early trading Tuesday.  (Eshitva Prakash)

Equity Alert: Most Asian mkts closed for Lunar New Year; Japan indices down

MUMBAI--0745 IST--Most Asian stock markets such as in Mainland China, Hong Kong, Taiwan, Singapore, and South Korea were closed Tuesday on account of Lunar New Year. The US markets were closed Monday on account of President's Day. The Australian S&P/ASX 200 Index was higher but indices in Japan were down.

Indices in Japan were under pressure coming off a session marred by unsatisfactory GDP numbers for the country. The country's economy grew 0.2% on year in the December quarter and was far below the 1.6% growth forecast. The economy barely recovered from the 2.6% contraction seen in the previous quarter, Reuters reported. The Bank of Japan has scheduled its next meeting in March as traders forecast a slim possibility of a rate hike. The central bank is expected to wait until July before it tightens its policy again, according to Economists polled by Reuters.

"It shows that the economy's recovery momentum is not very strong," Meiji Yasuda Research Institute economist Kazutaka Maeda was quoted as saying. "Consumption, capital expenditure and exports - areas we hoped would drive the economy - just haven't been as strong as we expected," Maeda added. "The market has likely assumed that softer GDP data in the fourth quarter will encourage PM Takaichi's plans to offer additional fiscal support and reduce the sales tax on food," analysts from National Australia Bank were reported as saying in a note. 

In Australia, the country's central bank said inflation would stay persistently high had it not hiked interest rates this month, Reuters reported. The bank also said it was not sure if further tightening would be required.

Crude oil prices rose ahead of talks between the US and Iran to de-escalate tensions. Iran's Revolutionary Guards performed a drill in the Hormuz Strait Monday, a day before the nuclear negotiations. The Hormuz Strait accounts for 20% of global oil shipments. Global uncertainties have left markets unsure as investors adopt a cautious approach due to the pending talks between the US and Iran and the Ukraine negotiations this week, analysts from ANZ were reported as saying. "Speculative positions have been increasing in recent weeks. If tension in the Middle East eases or meaningful progress is made on the Ukraine war, the risk premium currently built into oil prices could swiftly unwind," they added.

Following are the levels of key Asian indices at 0746 IST:

(Akshat Saksena)

US$1 = INR 90.72

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

All times are Indian Standard Time.

NSE: National Stock Exchange
NYSE: New York Stock Exchange
NYMEX: New York Mercantile Exchange
SEBI: Securities and Exchange Board of India
RBI: Reserve Bank of India

Internet links:
Securities and Exchange Board of India - http://www.sebi.gov.in
Bombay Stock Exchange - http://www.bseindia.com
National Stock Exchange of India - http://www.nseindia.com
Directory of Indian government websites - http://goidirectory.nic.in
Indian Ministry of Finance - http://www.finmin.nic.in
Reserve Bank of India - http://rbi.org.in
Controller General of Accounts, Government of India - http://www.cga.nic.in
Government's Press Information Bureau - http://www.pib.nic.in

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.