Major indices stayed in the green for a third straight session. Sensex and Nifty gained ~0.25 %, while Bank Nifty slipped slightly. Mid‑ and small‑cap indices extended gains.
Sector performance
NSE sector index
% change
Comments
Nifty Media
+2.4 %
Second day of strong gains; Sun TV rallied >7 % and was among the star performers.
Nifty Auto
+1.4 %
Auto stocks such as Mahindra & Mahindra, Bajaj Auto and Tata Motors rose on hopes of stronger domestic sales and supportive trade news.
Nifty Metal
+1.0 %
Continued buying in Tata Steel, JSW Steel and Hindalco; metal index has now gained for three sessions.
Nifty IT
+0.4 %
Tech stocks were mixed; Tech Mahindra edged up while HCL Tech slipped.
Nifty FMCG & Financial Services
~+0.3 %
Defensive sectors extended modest gains, supported by stable consumption data.
Nifty Oil & Gas/Realty
+0.2–0.3 %
Benefited from lower crude prices and positive sentiment.
Nifty Bank & PSU Bank
–0.1 %
Profit‑taking after recent rally; index snapped a two‑day advance.
Nifty Pharma
–0.3 %
Worst performer; selling in Dr Reddy’s, Aurobindo Pharma after mixed earnings.
Gains were broad‑based with 11 of 15 sectoral indices closing higher. Media, Auto and Metal led, while Pharma and PSU Bank lagged.
Falling volatility suggests traders expect a calmer near‑term market; derivative positions show heavy call and put open interest around the 26,000/25,500 strikes.
F&O positioning
Nifty February futures traded at a 48‑pt premium; heavy call OI at 26,000 and put OI at 25,500
Indicates traders positioning for a range‑bound expiry; 26,000 remains the key ceiling.
Foreign portfolio investment (FPI)
FPIs net bought ₹2,254 cr on Monday; month‑to‑date inflow >₹11,600 cr
Sustained foreign buying supported the rally alongside a stronger rupee.
Currency & commodities
Rupee edged up against USD; Brent crude near $72/bbl; gold flat
Rupee strength and subdued crude prices helped Indian equities, though energy stocks were flat.
Eternal topped both Sensex and Nifty gainers after strong demand. HCL Tech and Bajaj Finance led losers amid profit‑taking.
What moved the market
Favourable global cues and trade sentiment: Overnight gains in US equity futures and stable European markets set a positive tone. A US–India interim trade deal, which reduces tariffs on Indian exports, and easing geopolitical risks buoyed sentiment.
Foreign portfolio inflows: FPIs continued buying Indian equities, with month‑to‑date inflows exceeding ₹11,600 cr. The rupee’s strength and prospects of further inflows lifted financial and auto stocks.
Sector rotation: Traders rotated into media, auto and metal shares. Strong domestic auto sales expectations and global commodity optimism propelled Tata Steel, JSW Steel and M&M higher. Media stocks rallied on renewed investor interest.
Corporate earnings: Positive earnings from Samvardhana Motherson, BSE, and Apollo Micro Systems triggered stock‑specific rallies. Conversely, weak results from Aurobindo Pharma and Texmaco Rail pressured the pharma and capital‑goods pockets.
Derivative positioning: With the February F&O expiry approaching, heavy call and put open interest near 26,000/25,500 triggered range‑bound trade. A drop in India VIX signalled lower anticipated volatility, encouraging buyers.
Global cues
US markets: S&P 500, Nasdaq 100 and Dow futures were up about 0.1–0.2 % ahead of US retail‑sales and inflation data. Investors expect the US Federal Reserve to maintain a dovish stance as growth moderates.
Europe: The Stoxx Europe 600 was little changed. Euro‑zone investors monitored corporate earnings and upcoming ECB commentary.
Asia: Chinese regulators reportedly urged banks to limit US‑Treasury holdings, strengthening the yuan to its highest level since May 2023. Most Asian bourses traded in the green, supporting Indian equities.
Commodities & currencies: Brent crude hovered near USD 72 per barrel; gold remained flat. Stable crude and precious‑metal prices supported India’s macro backdrop. The rupee appreciated slightly against the US dollar.
Stocks to watch
Samvardhana Motherson International: Q3 FY26 net profit climbed 9 % and revenue grew 13.5 %, boosting the stock ~6 %. Investors will watch follow‑through buying ahead of guidance updates.
Apollo Micro Systems: Reported a 25 % YoY jump in PAT and 70 % revenue growth, pushing the stock higher. Defence orders and strong order book keep it in focus.
RailTel Corporation of India: Shares gained over 4 % after securing a ₹455 cr project from West Central Railway. Execution progress and future orders could drive momentum.
BSE Ltd: Brokerages raised their price targets after Q3 profit nearly tripled and revenue hit a record. Trading activity and new product launches may sustain interest.
L&T: Announced a significant transport infrastructure contract in Dubai, signalling overseas order diversification. The stock was among mid‑cap movers.
Sun TV Network: Rallied over 7 % to a four‑month high. Continued interest in media stocks could extend gains.
Aurobindo Pharma: Fell around 8 % intraday after disappointing results; watch for bargain hunting or further selling.
Corporate updates
Samvardhana Motherson Q3 FY26: Net profit rose 9 % to ₹1,072 cr, revenue up 13.5 % to ₹31,409 cr. The company attributed gains to diversification across automotive components and electronics.
Apollo Micro Systems Q3 results: PAT jumped 25 % YoY to ₹22.8 cr; revenue surged 70 % to ₹252.2 cr. The defence‑focused firm expects continued order flow.
RailTel project win: RailTel received a Letter of Acceptance worth ₹454.95 cr to supply telecom and IT systems to West Central Railway, boosting investor confidence.
BSE Ltd Q3 performance: Consolidated net profit nearly tripled to ₹602 cr; revenue hit ₹1,334 cr. Brokerages raised price targets, citing strong operating leverage.
Carlyle–Edelweiss deal: Carlyle Group agreed to acquire a 45 % stake in Nido Home Finance (a unit of Edelweiss) with a total investment of ₹2,100 cr, signalling increased private‑equity activity in Indian NBFCs.
L&T Dubai order: L&T secured a significant transport‑infrastructure project in Dubai as part of the UAE’s road‑development initiative, highlighting overseas order visibility.
SEBI directive: The market regulator asked NCDEX and MSE to halt plans for equity derivatives until they build adequate cash‑equity trading volumes.
Technical levels and outlook for tomorrow
Index
Key support levels
Resistance levels
Tone
Nifty 50
25,800–25,850 (intermediate support) and 25,750 (major support)
26,000–26,100 short‑term resistance; breakout could extend to 26,150
The index formed a doji candle on daily charts, suggesting indecision. Holding above 25,900 keeps bulls in control. A dip below 25,900 could prompt profit‑booking toward 25,800.
Sensex
83,700–83,500
84,500–84,800, with extension to 85,000 if momentum continues
Momentum remains positive but the rally is stretched; consolidation likely unless Asian markets give strong cues.
Bank Nifty
60,000–60,500
60,800–61,300
Bank stocks paused after recent run‑up. Support around 60,000 could attract buyers; resistance near 61,000.
Nifty Midcap/Smallcap
–
–
Broader indices are in up‑trend; however, valuations look stretched. Stock‑specific action may dominate.
Expected market tone (next trading day)
Cautiously constructive: With indices near all‑time highs and F&O expiry approaching, markets may consolidate within a narrow band. Traders will watch global macro data (US retail sales and CPI) and domestic Q3 earnings releases.
Sector rotation likely: Media and auto stocks could witness continuation, while profit‑taking might persist in pharma and selective PSU banks. Metals may remain buoyant if global commodity prices hold.
Nifty range: Expect Nifty to oscillate between 25,800 and 26,100. A break below 25,800 could lead to a deeper pull‑back, whereas a decisive move above 26,100 may trigger fresh buying toward 26,300.
Focus on earnings and flows: Stock‑specific moves will be influenced by ongoing earnings and FPI flows. Any uptick in India VIX or global volatility could alter the tone.
Overall, the near‑term outlook remains positive but tempered by the proximity to key resistance levels and F&O expiry. Traders should watch support around 25,800 and maintain a stock‑specific approach.
