Sensex and Nifty Performance Overview

The benchmark Sensex opened sharply lower by 772.19 points and extended losses throughout the session, ending the day 1.09% down. The index currently trades approximately 4.1% below its 52-week high of 86,159.02, signalling a short-term correction phase. Notably, the Sensex is trading below its 50-day moving average (DMA), which itself remains above the 200-DMA, indicating a mixed technical setup with potential for further downside if support levels fail to hold.

The broader Nifty100 index declined by 1.11%, while the Midcap and Smallcap indices suffered steeper losses of 2.95% and 5.07% respectively, reflecting risk aversion among investors towards smaller and more volatile stocks.

Sectoral Trends: Metals and Finance Bear the Brunt

Out of 38 sectors tracked, only one sector managed to eke out a marginal gain, while 37 sectors declined, underscoring the widespread weakness. The Nifty Metal sector was the worst performer, falling 3.02%, pressured by global commodity price softness and concerns over demand slowdown. The finance sector also faced significant selling pressure, with key constituents like Muthoot Finance plunging 11.38% and Bajaj Finance being the lone large-cap gainer with a modest 2.01% rise.

The Nifty Media sector was the sole advancer, inching up 0.05%, supported by select stocks showing resilience amid the broader market downturn.

Top Gainers and Losers Across Market Caps

Among large caps, Bajaj Finance led the gainers with a 2.01% rise, bucking the overall negative trend. Midcap stocks saw Linde India surge 7.50%, while small caps witnessed a remarkable 19.99% jump in GE Power, reflecting selective buying in quality mid and small-cap names.

Conversely, Adani Power was the largest large-cap loser, dropping 6.24%, weighed down by sector-specific concerns. Midcap laggards included Muthoot Finance (-11.38%) and Blue Jet Health (-10.00%), while SpiceJet tumbled 16.07%, marking the steepest fall among small caps.

Market Breadth and Investor Activity

The advance-decline ratio across the BSE500 was heavily skewed towards declines, with only 85 advances against 413 declines, resulting in a ratio of 0.21x. This weak breadth highlights the pervasive selling pressure and lack of conviction among market participants.

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) remained cautious, with subdued net inflows reported today, reflecting a wait-and-watch stance ahead of upcoming corporate earnings and global macroeconomic developments.

Global Cues and Their Impact

Global markets remained subdued amid lingering concerns over inflationary pressures and tightening monetary policies in major economies. Asian indices closed mostly lower, while European markets traded cautiously ahead of key economic data releases. The cautious global backdrop weighed on Indian equities, particularly sectors sensitive to global demand such as metals and power.

Currency markets also reflected risk aversion, with the Indian rupee marginally weaker against the US dollar, adding to the cautious sentiment among exporters and importers alike.

Upcoming Corporate Earnings to Watch

Investor focus is gradually shifting towards the upcoming earnings season, with ABB scheduled to report results on 19 Feb 2026 and Schaeffler India on 24 Feb 2026. These results are expected to provide fresh directional cues for the market, especially in the industrial and automotive sectors.

Technical Outlook and Investor Takeaways

Technically, the Sensex’s failure to hold above the 50-DMA and the steep decline in mid and small caps suggest a cautious near-term outlook. The market remains vulnerable to further corrections if global uncertainties persist or if domestic earnings disappoint. However, selective buying in quality large caps such as Bajaj Finance and midcaps like Linde India indicates pockets of resilience.

Investors are advised to maintain a balanced approach, focusing on fundamentally strong stocks with robust earnings visibility while avoiding excessive exposure to highly volatile small caps and sectors facing structural headwinds.

Overall, the current market environment favours patience and disciplined investing as volatility is likely to remain elevated in the run-up to the earnings season and key global policy decisions.

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