Indian Market Outlook – 17 February 2026
On 17 February 2026 the Indian equity market extended its recovery for a second session. The Sensex and Nifty 50 overcame a gap‑down opening and closed modestly higher, driven by gains in public‑sector banks and a rebound in information‑technology stocks after Infosys announced a collaboration with the AI firm Anthropic. Traders also drew comfort from positive U.S. and European data prints and hopes that talks between the U.S. and Iran would ease geopolitical tensions. However, sentiment remained cautious because foreign portfolio investors continued to sell Indian equities and global markets traded largely flat.
Major indices
| Index | 17 Feb 2026 | Change* | 52‑week range |
|---|---|---|---|
| Sensex (BSE) | 83,450.96 | +0.21 % | 71,425.01–86,159.02 |
| Nifty 50 (NSE) | 25,725.40 | +0.17 % | 21,743.65–26,373.20 |
| Nifty Bank | 61,174.00 | +0.37 % | 47,702.90–61,764.85 |
| Nifty Midcap 100 | 45,815 | +0.56 % | 38,428–48,015 |
| Nifty Smallcap 100 | 16,315 | +0.27 % | 12,589–17,043 |
*Percentage change versus previous close. Approximate closing levels based on index provider data; intraday statistics were not provided.
Sectoral performance
| Sector index | Move on 17 Feb 2026 |
|---|---|
| Nifty PSU Bank | +2.1 % – led by gains in State Bank of India and Punjab National Bank as credit growth remained robust. |
| Nifty IT | +1.0 % – IT shares rebounded after Infosys announced a collaboration with Anthropic to build enterprise AI solutions; Tech Mahindra and Wipro also gained. |
| Nifty FMCG | +0.9 % – defensive buying supported names like ITC and Britannia. |
| Nifty Consumer Durables | +0.7 % – Titan and Asian Paints advanced on strong Q3 sales commentary. |
| Nifty Bank | +0.4 % – public‑sector banks rallied; private‑sector banks were flat. |
| Nifty Media | +0.6 % – gains in Zee Entertainment and Sun TV. |
| Nifty Auto | +0.5 % – helped by Maruti and TVS Motor; Tata Motors lagged on profit‑taking. |
| Nifty Metal | −1.0 % – top laggard as weakness in base‑metal prices hit Hindalco and Tata Steel. |
| Nifty Realty | −0.3 % – profit‑taking in Sobha and Prestige Estates. |
Key statistics
- Market breadth: Out of BSE‑listed stocks, around 2,440 advanced while 1,758 declined. Approximately 116 stocks hit 52‑week highs and 144 registered new lows. About 182 stocks were locked at the upper circuit and 172 at the lower circuit, reflecting a mixed but generally positive breadth.
- Foreign vs domestic flows: Preliminary data suggested that foreign portfolio investors (FPIs) net sold roughly ₹972 crore of Indian equities on 16 February, while domestic institutional investors (DIIs) bought about ₹1,667 crore. The continued FPI outflows kept traders cautious even as domestic funds and retail investors provided buying support.
- Rupee & commodities: The rupee traded in a narrow range against the U.S. dollar, and Brent crude held above USD 82 per barrel due to geopolitical tensions. Gold prices softened slightly as U.S. bond yields stayed firm.
Top gainers and losers
Nifty 50 gainers
| Stock | Daily move (approx) | Rationale |
|---|---|---|
| Adani Enterprises | ↑ 2.7 % | Continued recovery after recent correction and optimism around the group’s renewable‑energy plans. |
| ITC | ↑ 2.4 % | Gains following strong cigarette sales and defensive demand in FMCG; considered a safe‑haven amid volatility. |
| Bharat Electronics (BEL) | ↑ 2.0 % | Buying interest in defence stocks ahead of possible defence deals during the French President’s India visit. |
| Infosys | ↑ 1.9 % | Rally driven by a collaboration with Anthropic to develop enterprise AI solutions, easing concerns about IT demand. |
| Larsen & Toubro (L&T) | ↑ 1.9 % | Strength in capital‑goods spending and expectations of new infrastructure orders. |
| Asian Paints | ↑ 1.7 % | Benefited from lower raw‑material costs and resilient consumer demand. |
| Titan | ↑ 1.5 % | Strong jewellery sales and optimism regarding wedding‑season demand. |
Nifty 50 losers
| Stock | Daily move (approx) | Explanation |
|---|---|---|
| Kwality Wall’s (HUL demerger) | ↓ 5.0 % | Newly listed frozen‑desserts business saw profit‑booking after listing gains. |
| Hindalco Industries | ↓ 1.9 % | Slump in global aluminium prices and cautious outlook for Chinese demand. |
| Eternal | ↓ 1.8 % | Pressure following results and high valuations. |
| Reliance Industries | ↓ 1.5 % | Weakness in oil‑to‑chemical spreads and modest telecom subscriber growth. |
| Trent | ↓ 1.5 % | Profit‑taking after rally; valuations remain rich. |
| Tata Steel | ↓ 1.3 % | Fall in steel prices and concerns over European operations. |
| Mahindra & Mahindra | ↓ 1.2 % | Mixed response to its quarterly results. |
Broader‑market movers
| Stock | Move | Notes |
|---|---|---|
| Newgen Software | ↑ 14 % | Strong quarterly earnings and order wins. |
| Praj Industries | ↑ 10 % | Fresh ethanol plant orders and positive management guidance. |
| Aegis Vopak Terminals | ↑ 6 % | Approval of new capacity expansion project. |
| Force Motors & Reliance Infrastructure | ↑ ≈5 % | Gains on improved outlook for defence and infrastructure spending. |
| Engineers India | ↓ 5 % | Disappointment over order inflows; profit‑taking after recent rally. |
| Brainbees Solutions (FirstCry) | ↓ 4 % | Weak results and valuation concerns. |
| Hindustan Copper, GMDC, Hindustan Zinc, Nalco | ↓ 2–4 % | Fall in base‑metal prices weighed on mining names. |
What moved the market
- AI‑driven tech rebound: The Nifty IT index rose 1 % as Infosys unveiled a partnership with Anthropic to develop enterprise AI solutions. This spurred buying in other IT majors like HCL Tech and Wipro, prompting traders to bargain‑hunt after a sharp sell‑off earlier in the week.
- Public‑sector banks led the rally: The Nifty PSU Bank index jumped over 2 % on continued optimism about credit growth and expectations that the Reserve Bank of India’s tighter rules for broker funding would not materially impact large PSU banks. State Bank of India and Bank of Baroda were notable gainers.
- Defensive buying and stock‑specific triggers: Investors favoured FMCG and consumer‑durable stocks such as ITC, Britannia, Asian Paints and Titan. Defence stocks, including Bharat Electronics, rallied on hopes of deals during the French President’s visit.
- Weakness in metal stocks: The Nifty Metal index fell 1 % as falling base‑metal prices and demand concerns from China hurt Hindalco and Tata Steel. Realty names also underperformed on profit‑booking.
- Mixed global cues: European and U.S. equity futures were flat to slightly negative. The Stoxx Europe 600 index traded almost unchanged, S&P 500 futures slipped about 0.2 % and Nasdaq 100 futures were down 0.5 %. Asian markets were subdued as holidays in parts of Asia reduced volumes, while investors awaited the U.S. Federal Reserve’s meeting minutes later in the week.
- Macro headwinds: Persistent foreign‑portfolio‑investor selling and concerns over geopolitical tensions (notably U.S.–Iran talks) capped gains. High valuations in the broader market also contributed to a cautiously positive tone.
Stocks to watch (corporate updates)
| Company | Event or update |
|---|---|
| ABB India, Rain Industries, Schaeffler India | To report quarterly earnings; analysts expect margin pressure due to higher raw‑material costs. |
| Cochin Shipyard | Declared L1 bidder for the Navy’s Next‑Generation Survey Vessel programme worth ~₹5,000 crore; contract award expected soon. |
| Texmaco Rail & Engineering | Received orders worth ₹247 crore from South Western Railway and Mumbai Railway Vikas Corp. |
| JSW Infrastructure | Board meeting scheduled for 20 Feb 2026 to consider fund‑raising proposals. |
| Embassy Developments | Secured MahaRERA approval for phase I of its Embassy Serenity residential project. |
| Lupin | Entered a licensing agreement with U.S. firm Spektus to market the novel antidepressant DeslaFlex in India; launch expected in FY 2027. |
| TVS Supply Chain Solutions | Signed a memorandum of understanding with the UK’s ALA Group to offer integrated aerospace and defence supply‑chain solutions. |
| Delhivery | Announced deployment of 150 electric delivery vehicles and the launch of an EV‑as‑a‑service program to reduce last‑mile emissions. |
| Britannia Industries | Planned additional investments in e‑commerce distribution to counter regional snacking competitors. |
| Reliance Consumer Products | Formed a joint venture with Nigeria’s Tropical General Investments Group to market beverages and snacks across Africa. |
| Mobilise App | SME IPO for this mobile‑app firm opens 23 Feb 2026; aims to raise ₹20.1 crore. |
| Defence stocks | Monitoring possible agreements during French President Emmanuel Macron’s visit, including potential fighter‑jet deals. |
| Smallcap earnings | Newgen Software, Praj Industries, Engineers India and other mid‑cap names will be in focus after volatile moves. |
Global cues
- US & Europe: The Stoxx Europe 600 was almost flat; S&P 500 futures slipped ~0.2 %; Nasdaq 100 futures were down ~0.5 %. Traders awaited the U.S. Federal Reserve’s minutes and economic data later in the week. The U.S. Dollar Index held near 104.5, keeping emerging‑market currencies subdued.
- Asia: The MSCI Asia Pacific and MSCI Emerging Markets indices were little changed as markets in China and Hong Kong were closed for holidays. Japan’s Nikkei 225 edged higher, while Korean and Taiwanese markets were range‑bound.
- Commodities: Brent crude stayed above USD 82 per barrel due to geopolitical risks, while gold eased as yields rose. Iron‑ore prices slipped, hurting metal stocks.
Outlook for tomorrow (18 February 2026)
- Technical levels: The market formed a bullish candle on the daily chart after bouncing off support near 25,600 (Nifty)/83,000 (Sensex). Key support now lies at 25,500–25,600 on the Nifty and 82,700–83,000 on the Sensex. As long as indices stay above these zones, the short‑term uptrend may continue. Immediate resistance is seen at 25,800 (Nifty)/83,700 (Sensex); a breakout could open the door to 25,950–26,000 on the Nifty and 84,200–84,500 on the Sensex. A close below 25,500/82,700 would indicate vulnerability to a deeper pull‑back.
- Market tone: After two successive gains, the market is likely to consolidate with a positive bias. Traders will watch the U.S. Fed minutes, global commodity movements and foreign‑investor flows. IT stocks may remain in focus following the Infosys–Anthropic AI deal. Defence and infrastructure names could see continued interest due to potential contracts during President Macron’s visit. Overall, expect a range‑bound session with stock‑specific action and moderate volumes; dips toward support levels may be viewed as buying opportunities, while rallies near resistance could trigger profit‑taking.
