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Indian equity markets are likely to open flat on Thursday, despite a strong close in the US market. Looking ahead, geopolitical developments involving the United States and Iran, along with AI and tariff-related news flow, are likely to dictate market sentiment and near-term trajectory, said Bajaj Broking in a note.
Meanwhile, brokerages, both global and domestic, are largely positive on Q3 results of India Inc. Nomura shares an optimistic outlook, Q3 earnings trend of 255 companies (BSE 200 + its coverage universe), projecting steady earnings momentum with low risk to near-term estimates. They maintain a December 2026 Nifty target of 29,300. While the IT services sector has recently faced drawdowns, Nomura argues that market concerns about AI-driven deflationary pressures are “premature and overdone”. They expect IT companies to gain from new business opportunities. The brokerage is positive on financials, cement, consumer discretionary, auto ancillaries, telecom and pharmaceuticals.
PL Capital suggested that “all decks are cleared for growth”. They highlight visible “green shoots” from new trade deals with the US and EU, and a demand revival buoyed by lower inflation and GST rationalisation. PL Capital remains overweight on banks, consumer, auto, and capital goods, setting a 12-month Nifty target of 27,958. Goldman Sachs notes a global structural shift favouring “capital intensive” sectors (the “HALO effect”), driven by fiscal expansion and a manufacturing rebound. However, CLSA warns of “high EPS downgrade risks in small caps” and continues to favour large caps.
Meanwhile, Emkay Global Research, in a note, said that IT stocks have become attractive following the recent slide.
“IT sector valuations are too attractive to ignore as the market has over-reacted to the AI threat. Long-term sector growth is likely to remain at sub-5%, but we see little merit in the alarmist projections of a vicious contraction. Value emerges at 14-18x P/E and 4-6% FCF yield. We see potential of a 6.5%-18.3% return, with limited downside, replace Mphasis with Infosys and HCL Tech in our model portfolio, and turn marginally OW. An ultra-bearish IT scenario could de-rate Indian equities, with second-order impact on CAD, consumption, and banking – that, thankfully, is a remote probability.” It added.
Gift Nifty is currently trading at 25,628, almost flat with the Nifty futures price. Derivative trading signals a neutral view, said analysts.
Hitesh Tailor, Research Analyst - Research at Choice Equity Broking Private Limited, said volatility in the broader market eased, with India VIX declining 4.86% to 13.48, signalling reduced short-term risk perception and calmer market conditions. “In the derivatives segment, heavy put writing at the 25,500 strike and strong call writing at the 25,600 strike point to a tight range-bound structure and ongoing consolidation for the Nifty. Traders are advised to remain cautious near key support zones and wait for a clear breakout above resistance levels before taking fresh directional positions,” he added.
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm.
The Indian stock market is expected to begin the session on a steady note, reflecting overnight gains on Wall Street—led by technology counters—and a constructive tone across Asian markets in early trade. Sustained DII inflows continue to act as a structural anchor, supporting selective accumulation in banking, metals, power, FMCG, and auto stocks.
Additionally, strong buying by both FPIs (₹2,991 crore) and DIIs (₹5,118 crore) in the previous session is likely to provide added comfort to investors. Domestic fundamentals remain stable, and ongoing sectoral rotation is helping the indices absorb periodic profit booking at higher levels.
Published on February 26, 2026
English (US) ·