Sensex and Nifty Performance Overview

After opening 235.57 points higher, the Sensex reversed sharply, plunging as much as 999.28 points during the session before settling near the lows. The index is currently trading approximately 3.84% below its 52-week high of 86,159.02, signalling a notable correction phase. The Sensex remains below its 50-day moving average (DMA), although the 50DMA continues to trade above the 200DMA, indicating that the medium-term trend is still intact but under pressure.

The Nifty mirrored this weakness, dragged down by losses in key sectors and large-cap stocks. Large caps traded largely flat overall, with select names showing divergent trends.

Sectoral Trends: Pharma Holds Ground While Realty Slumps

Out of 37 sectors tracked, only two managed to close in positive territory, while 35 sectors declined. The Nifty Pharma sector was the sole gainer, inching up 0.09%, supported by steady buying interest in select pharmaceutical stocks. In stark contrast, the Nifty Realty sector was the worst performer, falling 1.95% amid profit-taking and subdued demand outlook.

Other sectors such as banking, IT, and metals also faced selling pressure, contributing to the broad market weakness.

Market Breadth and Capitalisation Trends

The advance-decline ratio across the BSE500 was a weak 0.28x, with 109 advances versus 390 declines, underscoring the pervasive bearish sentiment. Market capitalisation segments reflected this trend, with the BSE100 large caps falling 0.91%, midcaps declining 2.72%, and small caps suffering the steepest fall of 4.4%. This indicates that smaller and mid-sized companies bore the brunt of the selling pressure, while large caps showed relative resilience.

Top Gainers and Losers Across Market Caps

Among the BSE500 constituents, Newgen Software led the gainers with a robust 15.04% rise, followed by Tata Investment Corporation at 9.60% and Netweb Technologies advancing 6.56%. On the downside, Lloyds Metals declined 5.15%, A B Real Estate fell 4.76%, and Cohance Life dropped 3.81%.

Within large caps, ONGC was the top performer, rising 2.57%, while Persistent Systems was the largest laggard, down 3.56%. Midcaps saw Godrej Industries gain 5.26%, whereas Lloyds Metals again led losses with a 5.15% decline. Small caps were the most volatile, with TIL surging 17.72% and Jubilant Agri falling 6.67%.

Foreign Institutional and Domestic Institutional Activity

Foreign Institutional Investors (FIIs) remained cautious, with net outflows continuing amid global uncertainties and mixed economic data from major economies. Domestic Institutional Investors (DIIs) showed limited buying interest but were unable to offset the selling pressure from FIIs and retail investors. This dynamic contributed to the subdued market sentiment and the broad-based decline.

Global Cues and Their Impact

Global markets were subdued, with Asian indices mostly trading lower following mixed economic data and ongoing geopolitical concerns. US markets closed marginally lower overnight, weighed down by disappointing earnings from select technology companies and concerns over inflationary pressures. European markets also showed caution ahead of key central bank meetings. These global factors weighed on investor sentiment in India, limiting any upside momentum.

Technical Outlook and Key Levels

Technically, the Sensex’s failure to sustain above the 50DMA and the sharp intraday reversal suggest increased selling interest at higher levels. The index is now testing support near 82,500, with a break below this level potentially exposing it to further downside towards the 200DMA near 81,000. However, the 50DMA remaining above the 200DMA indicates that the longer-term uptrend is not yet broken, and any dips could attract value buying.

Investors should monitor the upcoming quarterly results, including Schaeffler India’s report due on 24 Feb 2026, for fresh triggers and sectoral cues.

Investor Takeaway

Today’s market action reflects a cautious stance among investors amid mixed global cues and sector-specific headwinds. The sharp decline in mid and small caps suggests risk aversion, while the relative stability in large caps indicates selective buying in blue-chip stocks. The modest gain in the pharma sector highlights its defensive appeal in uncertain times.

Going forward, investors should closely watch global developments, domestic economic data, and corporate earnings to gauge the market’s direction. Prudent stock selection focusing on quality companies with strong fundamentals and resilient business models remains paramount in the current environment.