Rebounded over 650 points from the previous close after early weakness. Heavyweights such as Power Grid, HDFC Bank and Reliance Industries led the recovery.
NSE Nifty 50
25,682.75
▲0.83%
Snapped a two‑day losing streak, bouncing from an intraday low near 25,300. 35 of the 50 constituents ended higher, showing improving breadth.
Nifty Bank
~60,500
▲1.2% (approx.)
Banking stocks rebounded strongly; both PSU and private banks rose on expectations that regulatory clarity will support credit growth.
India VIX
13.31
+0.15%
Volatility gauge remained subdued, indicating stable risk appetite despite global macro concerns.
Sectoral Snapshot
Sector (Nifty Indices)
Performance (approx.)
Drivers
PSU & Private Banks
+1.3 – 1.6%
Regulatory clarity on margin rules and expectations of sustained credit growth triggered buying in HDFC Bank, Axis Bank, Canara Bank and Union Bank.
Realty
+1.5%
Bargain hunting in real‑estate developers such as Signature Global and Phoenix Mills after the previous session’s sell‑off.
Energy
+1.9%
Power Grid and Coal India’s strong gains lifted the energy gauge; global crude prices remained steady around USD 68 a barrel.
FMCG & Consumer
+0.8%
Defensive buying returned to ITC and Hindustan Unilever.
Pharma/Healthcare
+1.0%
Demand for safe‑haven sectors and positive USFDA approvals supported Natco Pharma and Alkem.
Capital Goods
+0.7%
Expectations of continued infrastructure spending benefited Larsen & Toubro and ABB India.
Metal & Mining
-0.3%
Profit‑booking in JSW Steel and Tata Steel despite stable commodity prices.
Information Technology
-0.6%
AI‑driven disruption fears and weak cues from US tech names kept Tech Mahindra, Infosys and Wipro under pressure.
Auto
-0.7%
Maruti Suzuki, M&M and Tata Motors declined as investors booked profits; concerns about electric‑vehicle margin pressure resurfaced.
Media
-0.8%
ZEE Entertainment and Sun TV extended their decline on lacklustre advertiser spending.
Key Statistics
Market breadth: On the Nifty 50, 35 stocks advanced and 15 declined. Broader market breadth on the BSE remained slightly negative with about 2,500 shares falling and 1,800 rising.
FII/ DII flows: Foreign institutional investors (FIIs) were net sellers on the last available session (Friday, 13 February) to the tune of ₹7,395 crore, whereas domestic institutional investors (DIIs) bought ₹5,553 crore. FIIs remain net buyers for the month as a whole, but caution persists.
Mid‑cap and small‑cap performance: The BSE MidCap index gained 1.6% while the SmallCap index surged 2.9%, reflecting selective accumulation in quality names after sharp corrections in the previous week.
Volatility: India VIX around 13.3 indicates investors are not expecting drastic short‑term swings; however, any global shock could quickly raise volatility.
Top Gainers and Losers (Nifty 50)
Top Gainers
% Chg (approx.)
Reasons
Power Grid Corp.
+4.5%
Upbeat demand outlook for transmission projects; investors rotated into utilities as a defensive play.
Coal India
+3.4%
Announcement of an interim dividend and expectations of higher realisations due to elevated coal prices.
HDFC Bank
+2.5%
Positive commentary on asset quality and credit growth; investors saw value after recent correction.
Axis Bank
+2.1%
Benefited from sector‑wide strength; improving net interest margin outlook.
Retail and two‑wheeler names witnessed selective profit‑taking after recent rallies.
What Moved the Market
Value buying in defensives: After a cautious opening, traders turned to defensive sectors such as FMCG, healthcare and utilities. Heavyweights like Power Grid, NTPC, ITC and HDFC Bank attracted buying interest, helping the indices recover more than 1,000 points from the day’s lows.
Banking rebound: Improved regulatory clarity on margin rules and continued liquidity support fuelled a sharp rebound in PSU and private banks. Expectations of robust loan growth and stable asset quality supported sentiment.
Profit‑taking in cyclical sectors: Investors booked profits in auto, IT, media and metal stocks, reflecting worries about AI‑driven disruption in tech, margin pressure in auto makers and high valuations in cyclicals.
Institutional flows: FIIs remained cautious after heavy selling last week, while domestic funds continued to accumulate equities, particularly in financials and realty.
Muted global cues: Asian markets traded mostly flat as Chinese and South Korean markets were closed and Japan’s data disappointed. US markets were shut for Presidents’ Day, and European indices edged higher but lacked clear direction. This kept global cues neutral.
Global Cues
US: Major US indices were closed for Presidents’ Day. Last Friday, the S&P 500 ended marginally higher while the Nasdaq fell due to weak tech earnings and AI disruption concerns. Traders are watching upcoming US unemployment and inflation data to gauge Federal Reserve rate‑cut expectations.
Europe: The pan‑European Stoxx 600 gained ~0.2%; France’s CAC 40, the UK’s FTSE 100 and Germany’s DAX all rose slightly as investors assessed updates from the Munich Security Conference. Energy and financial stocks led gains.
Asia: Japanese indices were flat amid weak GDP data; Chinese and South Korean markets were closed for holidays. Hong Kong’s Hang Seng added around 0.4%, supported by technology shares. Overall, Asian risk appetite remained cautious.
Commodities: Brent crude hovered near USD 68/bbl, and gold eased slightly towards USD 5,014/oz as traders awaited fresh macro catalysts.
Stocks to Watch
Stock
Rationale
Blue Star, Astral, Kirloskar Oil Engines
Axis Securities highlighted these stocks for their robust order books and earnings visibility; they could benefit from cap‑ex‑driven demand.
Coal India
Announced an interim dividend and remains in focus due to high coal prices.
ONGC
Under pressure after a brokerage downgrade; any weakness could present trading opportunities for contrarians.
Kwality Walls (Hindustan Unilever demerger)
The ice‑cream business began trading separately; monitor price discovery in the coming sessions.
Ola Electric
Recently listed EV company saw a sharp slump as anchor investors’ lock‑in ended; volatility may persist.
GMR Airports, Aurobindo Pharma
Among mid‑caps, these stocks rallied on strong results and positive guidance; watch for follow‑through buying.
Corporate Updates
NSE IPO clearance: The Delhi High Court dismissed a plea challenging SEBI’s approval for the National Stock Exchange’s IPO, removing a major hurdle. Market participants expect the IPO process to pick up pace later in the year.
TCS & Religare deals: Tata Consultancy Services acquired a minority stake in a UK‑based fintech start‑up, while Religare Enterprises announced plans to invest in a digital‑health platform. These strategic moves underline technology’s role in diversifying revenue streams.
KFin Technologies, Blue Jet Healthcare results: Both companies reported Q3 results. KFin’s profits rose modestly, while Blue Jet Healthcare posted solid growth in revenues on strong demand for its formulations.
Coal India dividend: The company declared an interim dividend of ₹5.25 per share, attracting investor interest.
RBI margin rules: The Reserve Bank’s updated margin requirements for securities financing (effective 1 April) favours banks but tightens funding for brokers. Shares of broking firms like Angel One and MCX fell up to 10% on the news.
Outlook for 17 February 2026
Technical levels
Nifty 50: Immediate support lies near 25,400–25,350; a breach could extend declines toward 25,200–25,050. On the upside, resistance is seen at 25,650–25,700; above this zone, the index could test 25,800–26,000. Buying on dips towards 25,200–25,300 with a stop at 25,000 is favoured.
Bank Nifty: As long as the index stays below 60,500, sentiment will remain cautious. A move above 60,500 could trigger a rally toward 61,000–61,300. Support is located at 59,500–59,200.
Expected market tone
The market’s tone is likely to remain stable to slightly positive. After a late‑session recovery driven by defensive sectors and banks, traders expect consolidation within a narrow range. Sustained buying by domestic institutions, resilient earnings from large caps and easing inflation expectations could underpin sentiment. However, continued FII caution and global macro uncertainty mean upside may be capped. Watch for data releases (India’s unemployment rate, trade balance and exports/imports) and corporate results for cues.
Summary:
The Indian market staged an impressive comeback on 16 February 2026, with the Sensex and Nifty finishing about 0.8% higher. Defensive sectors and banks led the rally while cyclicals saw profit‑taking. Institutional flows show FIIs remain cautious but domestic investors continue to provide support. Global cues are mixed, leaving traders focused on domestic earnings and macro data. A consolidation phase with a positive bias is likely, as long as Nifty holds above 25,400 and Bank Nifty stays near 60,000.
