Sensex and Nifty Performance Overview

The benchmark Sensex opened sharply lower by 772.19 points and extended losses throughout the session, ending the day 1.01% down. The index currently trades approximately 4.02% below its 52-week high of 86,159.02. Technical indicators show the Sensex trading below its 50-day moving average (DMA), although the 50DMA remains above the 200DMA, signalling a cautious medium-term outlook. The Nifty100 index mirrored this weakness, falling 1.05%, while the midcap and smallcap indices suffered steeper declines of 2.95% and 5.07% respectively, underscoring a risk-off sentiment among investors.

Sectoral Trends: Pharma Holds Ground Amid Metal Sector Weakness

Out of 38 sectors tracked, only the Nifty Pharma sector managed to eke out a marginal gain of 0.04%, standing as the sole sector in positive territory. In stark contrast, the Metal sector was the top laggard, plunging 2.54% amid profit booking and subdued global commodity prices. Other major sectors such as financials, IT, and energy also faced selling pressure, contributing to the broad market decline.

Market Capitalisation Segments: Small Caps Bear the Brunt

Small cap stocks were the hardest hit, with the BSE Smallcap index falling over 5%, reflecting heightened risk aversion among retail and institutional investors. Midcaps traded largely flat but leaned towards the downside, while large caps declined by around 1.05%. Among large caps, Hindustan Aeronautics emerged as a bright spot, gaining 1.98%, buoyed by positive sectoral news and defence contract optimism. Conversely, Adani Power was the largest large-cap loser, plunging 5.54% amid sectoral headwinds and profit-taking.

Top Gainers and Losers Across Market Segments

On the BSE500, Engineers India led the gainers with a robust 14.38% surge, supported by strong order inflows and government infrastructure spending expectations. Vardhman Textile and SignatureGlobal followed with gains of 6.82% and 6.05% respectively. In contrast, Muthoot Finance was the most significant decliner, plunging 11.43% amid concerns over asset quality and rising borrowing costs. Cohance Life and Praj Industries also faced sharp declines of 6.53% and 5.57% respectively.

Within midcaps, Hexaware Technologies stood out with a 4.90% gain, benefiting from upbeat quarterly results and positive client commentary. GE Power was the top small cap gainer, soaring nearly 20%, reflecting renewed investor interest in power sector plays. On the downside, Rategain Travel was the worst small cap performer, tumbling 14.55%, weighed down by weak travel demand and earnings disappointment.

Market Breadth and Investor Activity

The advance-decline ratio on the BSE500 was severely skewed, with only 89 advances against 411 declines, translating to a ratio of 0.22x. This indicates a broad-based sell-off rather than isolated profit-taking. Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained net sellers, reflecting caution amid global uncertainties and domestic macroeconomic concerns. The subdued participation from institutional players added to the bearish sentiment, especially in mid and small cap segments.

Global Cues and Their Impact

Global markets were subdued as investors digested mixed economic data from the US and Europe, alongside ongoing geopolitical tensions. The US Federal Reserve’s recent hawkish stance on interest rates has heightened concerns over global liquidity conditions, impacting emerging markets including India. Commodity prices, particularly metals, softened on expectations of slower demand growth, which weighed on Indian metal stocks. Currency markets also showed volatility, with the Indian rupee marginally weaker against the US dollar, adding to export sector concerns.

Technical Outlook and Key Levels

Technically, the Sensex’s failure to hold above the 50DMA and the sharp intraday fall below 83,000 points suggests a near-term bearish bias. However, the 200DMA remains a critical support level, and a sustained breach below this could trigger further downside. Investors should monitor upcoming quarterly results, including those of ABB on 19 Feb 2026 and Schaeffler India on 24 Feb 2026, for cues on corporate earnings momentum and sectoral trends.

Investor Takeaway

Today’s market action underscores the prevailing caution among investors amid mixed global cues and domestic uncertainties. The sharp underperformance of mid and small caps suggests a preference for quality and liquidity, while the resilience of select large caps like Hindustan Aeronautics indicates pockets of strength. Investors are advised to remain selective, focusing on companies with robust fundamentals and strong earnings visibility. Monitoring institutional activity and technical levels will be crucial in navigating the current volatile environment.

Upcoming Corporate Results to Watch

Market participants will closely watch the earnings announcements of ABB on 19 Feb 2026 and Schaeffler India on 24 Feb 2026. These results are expected to provide further clarity on industrial and automotive sector trends, which could influence market direction in the near term.

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