Market Intelligence Brief: Rupee Resilience and IT Volatility The Indian rupee remains in a narrow trading band, holding near **90.96** against the U.S. dollar. Stability in the currency is currently being maintained by aggressive dollar sales from foreign banks and a slight softening of the greenback on the global stage. Despite persistent external pressures, the local unit has managed to avoid a deeper slip toward the **91.00** psychological floor. Tech Sector Correction and AI Disruption The domestic equity market is navigating a significant correction, particularly within the technology sector. The **Nifty IT index** has plunged approximately **21%** in February 2026, marking its most severe monthly decline since the **2008** financial crisis. This sell-off was accelerated by global concerns over artificial intelligence tools that automate legacy system updates. Major Indian players like **TCS** and **Infosys** recently touched **52-week lows**, with intraday drops exceeding **5%** in recent sessions. Investors are pivoting away from traditional software models as AI-driven automation raises questions about long-term profitability and service commoditization. Trade Policy and Global Uncertainty International markets are grappling with renewed trade friction following a **U.S. Supreme Court** ruling that struck down previous emergency tariffs. In a rapid response, the **Trump administration** announced a new **15%** temporary tariff on imports under Section 122 of the Trade Act of 1974. This move covers an estimated **$1.2 trillion** in annual imports. While the measure is slated for a **150-day** duration, it has triggered widespread unease among major trading partners, including India, South Korea, and the EU. The unpredictability of these unilateral measures continues to weigh on global supply chains and investor sentiment. Economic Indicators and Growth Outlook Despite the turbulence in tech stocks and trade policy, India's broader economic fundamentals show resilience. Real **GDP growth** for the third quarter is projected at **8.1%**, supported by robust domestic consumption and private investment. Inflation remains a bright spot, with recent figures showing a decade-low average of **1.7%** to **1.8%**. This cooling of prices has bolstered rural demand and allowed the **Reserve Bank of India** more flexibility, although the central bank remains cautious regarding the narrowing interest rate differential with the U.S. Federal Reserve. Key Market Levels to Watch * **USD/INR:** Immediate support is holding at **90.92**, with resistance near **91.10**. * **Nifty IT:** Technical analysts identify the next major support zone near **29,600**. * **Oil Prices:** Brent Crude is hovering around **$72 per barrel** as geopolitical tensions influence energy markets. The combination of strong domestic growth and significant disruption in the export-heavy IT sector is creating a divergent market landscape as the month concludes.