Nifty reclaimed the 25,850 zone and finished near the day’s high after a gap‑up open. A low base due to the previous session’s consolidation and return of foreign investors aided the rise.
BSE Sensex
84,065.75
+0.58 %
The 30‑share index added ~485 points. SBI’s rally alone contributed a major portion of the gains.
Nifty Next 50
69,729.35
+0.97 %
Outperformed the frontline indices; driven by strength in Pharma, Metals and Power stocks.
Nifty Bank
60,669.35
+0.91 %
PSU bank stocks surged after SBI’s strong Q3 numbers. The index climbed back above the 60,500 level.
Fin Nifty
28,154.05
+1.25 %
Gains in financial services stocks, especially PSU lenders, drove the index higher.
Sectoral performance
Sector index
Close
% change
Highlights
Nifty Pharma
22,290.70
+1.50 %
Gains followed optimism that reduced US tariffs would benefit generic drug exporters.
Nifty Healthcare
14,313.95
+1.23 %
Healthcare stocks rallied with pharma on trade‑deal benefits.
Nifty Auto
27,791.45
+0.99 %
Auto component stocks gained on expectations of preferential tariff‑rate quotas under the new trade framework.
Nifty Oil & Gas
12,255.05
+0.38 %
Supported by news that Indian refiners purchased additional crude from West Africa and the Middle East, reducing supply worries.
Nifty FMCG
52,047.30
+0.32 %
Defensive buying after a sharp run‑up in cyclical sectors kept FMCG in the green.
Nifty IT
35,616.65
+0.02 %
The IT index closed almost flat. Investors were cautious amid an “Anthropic shock” in global tech and upcoming US earnings.
Fifteen of the sixteen major NSE sectors ended higher.
Key statistics and market breadth
Advances vs. declines: Market breadth was strong; roughly 15 of 16 sectoral indices closed in the green. In the broader market over 140 stocks hit fresh 52‑week highs.
PSU bank dominance: The PSU Bank index jumped 3.3 %, the top‑performing sector. Strong Q3 earnings from State Bank of India (+7.5 %) drove the rally, with peers like Indian Bank, Bank of India and Canara Bank up 1–3 %.
Mid‑caps & small‑caps: The Nifty Midcap 100 and Nifty Smallcap 100 outperformed, rising 1.6 % and 2.65 % respectively, supported by better‑than‑expected earnings and renewed risk appetite.
FII/DII activity: Foreign Institutional Investors (FIIs) turned net buyers in the cash segment after weeks of selling; they bought over ₹2,600 crore of equities since the start of February. Domestic Institutional Investors (DIIs) continued to support the market.
Volatility: Despite the gap‑up open, volatility stayed elevated amid global uncertainties. Options data shows heavy open interest at 25,500 (puts) and 26,000 (calls), creating a near‑term range for the Nifty.
High‑volume movers: Vodafone Idea and Yes Bank saw heavy volumes; both closed higher. Canara Bank and NMDC also registered notable volumes with modest gains.
Analysis – What moved the market
India-US trade framework: Over the weekend India and the United States announced an interim trade framework that cuts reciprocal tariffs to roughly 18 % and grants preferential quotas for sectors such as automotive parts, jewellery and pharmaceuticals. Export‑oriented stocks (gems & jewellery, textiles, seafood, aerospace suppliers) jumped on the expectation of improved US market access. Auto component makers and pharma exporters rallied, lifting sectoral indices. Investors saw the deal as a precursor to a comprehensive trade pact, boosting sentiment.
Return of foreign investors: After sustained selling in January, FIIs turned net buyers this month. Data shows net purchases of ₹2,645 crore in the first week of February. The infusion of foreign capital improved liquidity and supported large‑cap stocks. Combined with solid domestic flows, this gave markets the muscle to absorb supply.
Strong corporate earnings:State Bank of India reported 24 % YoY growth in Q3 net profit (₹21,028 crore) and raised its loan‑growth guidance. The stock rallied ~7.5 %, driving PSU bank index gains. Positive earnings from mid‑cap and small‑cap firms also underpinned broad‑market strength.
Global cues: A robust rebound in global equities added to the risk‑on tone.
United States: The Dow Jones Industrial Average crossed 50,000 for the first time and the S&P 500 stayed firm, helped by strong gains in semiconductor names like Nvidia. Wall Street’s recovery signalled that investors were looking past worries over elevated technology valuations.
Europe: The Stoxx 600 rose about 0.2–0.5 % as investors digested corporate earnings (e.g., UniCredit) and a bounce in technology shares.
Asia: The MSCI Asia Pacific index rallied over 2 %, led by Japanese stocks after Prime Minister Sanae Takaichi’s landslide election victory raised hopes of pro‑reflation policies. South Korean and Hong Kong markets also traded higher. A weaker US dollar and stable crude oil prices supported risk appetite.
Macro stability and outlook: Moody’s forecast for India’s FY 2027 GDP growth at 6.4 % (the fastest among G‑20 economies) reassured investors about long‑term prospects. Analysts anticipate earnings upgrades for FY 26–27, and robust domestic consumption should cushion any external shocks.
Sector rotation and short‑covering: After weeks of consolidation, traders covered shorts in heavyweight stocks. Sectors that had lagged, such as metals and real estate, saw renewed buying. High open interest in call options around 26,000 and put options at 25,500 indicates traders positioning for an upward range but bracing for volatility.
Global and domestic cues to watch
US economic data: A key US labour market report is due later in the week. Hints about wage growth and employment could influence Federal Reserve rate expectations and global risk sentiment.
Global technology sentiment: Continued jitters around artificial‑intelligence investments (“Anthropic shock”) may keep IT stocks volatile.
Oil prices: India’s purchase of additional crude from Venezuela and West Africa helps cushion supply shocks. However, geopolitical tensions or unexpected OPEC decisions could re‑ignite energy price volatility.
FII flows: Sustained foreign buying will be essential to maintain momentum. Any reversal could trigger profit‑taking.
Stocks to watch (corporate updates)
State Bank of India (SBI): Reported 24 % YoY rise in Q3 profit and raised loan growth guidance; the stock hit a record high. PSU lenders rallied in sympathy. Brokerage targets range from ₹1,235 to ₹1,300 per share.
IREDA: Approved a ₹2,994 crore fund‑raising plan via qualified institutional placement to strengthen its capital base for renewable‑energy financing.
Tata Steel: Delivered consolidated net profit of ₹2,689 crore in Q3 (a 723 % YoY surge) due to improved steel spreads. Brokerage houses raised target prices.
Reliance Industries: Its consumer‑products arm acquired Australia‑based Goodness Group Global, expanding into the health‑beverage segment.
Aurobindo Pharma: US FDA inspected the Eugia Pharma Specialities Unit III facility; investors will monitor observations.
Force Motors: Signed an agreement to acquire 100 % stake in Veera Tanneries for ₹175 crore; the stock hit a 52‑week high.
Kalyan Jewellers: Reported Q3 net profit growth of 90.2 % YoY to ₹416.3 crore and revenue growth of 42.1 %, driven by festive demand.
BEML: Board approved investment of ₹1,500 crore to set up a greenfield rail manufacturing facility (BRAHMA) in Madhya Pradesh.
BSE Ltd.: Shares gained ahead of its Q3 results announcement, reflecting expectations of strong earnings.
Other movers: Apex Frozen Foods and Avanti Feeds rallied after the trade deal; diamond & gemstone exporters jumped on tariff cuts; AXISCADES Tech gained on an order win from Hindustan Aeronautics; JK Tyre shares rallied on strong Q3 results.
Technical levels and outlook for tomorrow (Tuesday, 10 February 2026)
Support: The Nifty has strong support around 25,500 (highest put‐option open interest) and deeper support in the 25,000–25,200 zone, which coincides with the 200‑day EMA and 80 % retracement of the recent up‑move.
Resistance: Immediate resistance lies at 26,000 (highest call‑option open interest). A sustained move above 25,800 could open the door to 26,000 and then 26,350 in the near term. Failure to hold above 25,830 may invite selling pressure towards 25,500.
Bank Nifty levels: The banking index has immediate support at 59,500–59,200 (confluence of 20‑ and 50‑day EMAs) and short‑term support at 58,500–58,000 (100‑day EMA and bullish gap). Upside targets are 60,700 and 61,200 if the index maintains above support.
Market tone for tomorrow:
Bias: The short‑term bias remains positive to range‑bound. As long as Nifty stays above 25,500, dips are expected to attract buying.
Drivers: Traders will watch for follow‑through buying in PSU banks and export‑oriented sectors as more details of the India–US trade framework emerge. Profit‑taking cannot be ruled out after the recent run‑up.
Volatility: Options positioning suggests the market may consolidate within the 25,500–26,000 range in the absence of major news. Global cues, especially US economic data and comments from Federal Reserve officials, could trigger swings.
Strategy: Investors may look to accumulate quality large caps on dips and focus on stock‑specific opportunities linked to earnings and corporate actions. Traders should maintain tight stops around the mentioned support levels.
Summary
The Indian equity market kicked off the week with a risk‑on rally, driven by an interim India–US trade deal that cuts tariffs and promises greater export opportunities, a return of foreign institutional inflows, and robust corporate earnings-notably from State Bank of India. The Nifty 50 closed at 25,867.30 (+0.68 %) and the Sensex at 84,065.75 (+0.58 %), while broader markets outperformed. Nearly all sectoral indices gained, with PSU banks, pharma and healthcare leading the charge. Despite strong momentum, technical indicators and options data suggest that the market could consolidate between 25,500 and 26,000 in the short term. Traders should monitor global cues, especially US economic data and technology sentiment, while investors can focus on stock‑specific developments highlighted above.
