Market Overview and Index Movements

The Nifty opened the day 47.80 points lower but quickly reversed course, rallying 164.70 points from its intraday low to close firmly in positive territory. Despite this rebound, the index remains 3.14% shy of its 52-week high of 26,373.20, signalling some lingering resistance near recent peaks. Technical indicators show the Nifty trading below its 50-day moving average (DMA), although the 50DMA itself remains above the 200DMA, suggesting a cautiously bullish medium-term trend.

The Sensex mirrored this pattern, gaining 316.57 points to close at 82,814.71, supported by strong performances in select large caps. The broader market breadth was balanced, with the BSE500 recording 250 advances against 249 declines, resulting in an advance-decline ratio of 1.0x, indicative of a market evenly poised between buyers and sellers.

Sectoral Performance: Power Powers Ahead, IT Under Pressure

Sectoral trends were broadly positive, with 34 out of 38 sectors advancing on the BSE. The power sector led the gains, surging 1.91% as investor interest returned to energy stocks amid expectations of stable demand and favourable regulatory developments. Conversely, the IT sector lagged, declining 0.98%, pressured by profit booking and cautious global technology spending outlooks.

Large caps outperformed, with the Nifty Next 50 index rising 0.62%, signalling strength beyond the headline stocks. The BSE100 index rose 0.43%, while midcaps and small caps underperformed, falling 1.22% and 3.21% respectively. Small caps traded largely flat, reflecting selective investor caution in the riskier segments.

Top Gainers and Losers Across Market Caps

Among the BSE500 constituents, Hyundai Motor India led the gainers with a robust 5.73% rise, followed by Thermax at 4.89% and ABB India at 4.72%. These stocks benefited from sector-specific tailwinds and positive earnings outlooks. On the downside, Newgen Software plummeted 10.25%, weighed down by disappointing guidance and profit booking. Firstsource Solutions and Latent View also declined sharply by 5.65% and 5.15% respectively.

Breaking down by market capitalisation, Tube Investments was the top large-cap gainer, surging 4.30%, while Kwality Wall's was the largest large-cap laggard, falling 3.48%. Thermax led midcaps higher with a 4.89% gain, whereas Inventurus Knowledge Solutions declined 4.42%. Novartis India stood out in the small-cap segment with a remarkable 20.00% jump, contrasting with Newgen Software’s steep fall.

Foreign Institutional and Domestic Institutional Activity

Foreign institutional investors (FIIs) exhibited cautious buying, supporting the market’s mid-session recovery, while domestic institutional investors (DIIs) remained net sellers, reflecting profit-taking after recent gains. This mixed participation underscores the current market’s delicate balance between optimism and caution amid evolving macroeconomic and geopolitical factors.

Global Cues and Their Impact

Global markets showed a mixed tone today. US indices closed modestly higher on easing inflation concerns, while European markets were subdued amid ongoing geopolitical tensions. Asian markets were mixed, with China’s Shanghai Composite marginally lower and Japan’s Nikkei edging up. These global developments influenced Indian markets’ initial weakness and subsequent recovery, as investors digested overnight cues and domestic data.

Technical Outlook and Near-Term Expectations

Technically, the Nifty’s recovery from early losses and its current position just below the 50DMA suggest a potential consolidation phase before a decisive breakout. The 50DMA acting above the 200DMA remains a positive medium-term signal, but the index needs to breach the 52-week high of 26,373.20 convincingly to confirm renewed bullish momentum. Market participants will closely watch upcoming corporate earnings, including Schaeffler India’s results due on 24 Feb 2026, for further directional cues.

Investor Takeaway

Today’s market action reflects a cautious but constructive environment. The broad-based sectoral gains, led by power and large caps, indicate selective buying interest, while the underperformance in IT and small caps suggests investors are wary of near-term headwinds. The balanced advance-decline ratio and mixed institutional flows highlight a market in equilibrium, awaiting fresh triggers to sustain momentum.

Investors should monitor technical levels closely, particularly the Nifty’s ability to reclaim and hold above the 50DMA and inch closer to its 52-week highs. Earnings updates, global macro developments, and domestic policy announcements will be key drivers in the coming sessions. A disciplined approach focusing on quality large caps and sector leaders with strong fundamentals remains advisable amid the current market backdrop.

Upcoming Corporate Results

Market participants will be keenly watching Schaeffler India’s quarterly results scheduled for 24 Feb 2026. The company’s performance could provide additional insights into industrial demand trends and supply chain dynamics, potentially influencing related sectors and broader market sentiment.

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