Sensex and Nifty Performance Overview
The benchmark Sensex opened the day sharply lower by 225.65 points but reversed course to close with a gain of 353.77 points, or 0.43%, at 82,851.91. Despite the recovery, the index remains 3.99% below its 52-week high of 86,159.02. The Nifty100 also mirrored this positive momentum, rising by approximately 0.46%, supported predominantly by large-cap stocks.
Technical indicators present a nuanced picture. The Sensex is currently trading below its 50-day moving average (DMA), which often acts as a short-term resistance level. However, the 50DMA itself is positioned above the 200DMA, suggesting that the medium-term trend remains bullish. This alignment indicates that while short-term volatility persists, the broader market uptrend is intact.
Sectoral Trends: Leaders and Laggards
Out of 38 sectors tracked, 33 advanced while only 5 declined, reflecting widespread buying interest. The NiftyCPSE sector emerged as the top performer, gaining 1.38%, buoyed by strong buying in public sector enterprises. Conversely, the Realty sector was the sole notable laggard, slipping 0.26% amid profit-booking and cautious investor sentiment.
Large caps were the primary drivers of the market’s upward trajectory, with the Sensex’s 0.43% gain underscoring their dominance. Midcaps and small caps, however, faced headwinds. The BSE Midcap index declined by 1.22%, while the Smallcap index fell more sharply by 3.21%, indicating selective risk aversion among investors towards smaller companies.
Market Breadth and Capitalisation Trends
The advance-decline ratio across the BSE500 stood at a healthy 1.42x, with 292 stocks advancing against 205 declining. This positive breadth confirms that the rally was not confined to a handful of stocks but was broadly based. Large-cap stocks outperformed, with the BSE100 rising 0.46%, while mid and small caps lagged behind.
Among the top gainers on the BSE500, ABB led with a 6.99% surge, followed by Data Pattern at 6.30% and Netweb Technologies at 5.52%. On the downside, Newgen Software dropped 6.63%, Godfrey Phillips declined 4.29%, and Firstsource Solutions fell 4.24%, reflecting sector-specific pressures and profit-taking.
Top Performers and Underperformers by Market Cap
Within large caps, PB Fintech was the standout gainer, climbing 2.78%, supported by strong fundamentals and positive investor sentiment. The mid-cap segment saw Brainbees Solutions rally 4.82%, while VL E-Governance led the small caps with an impressive 19.94% jump, highlighting pockets of strong buying interest in select smaller companies.
On the losing side, Kwality Wall's was the largest large-cap decliner, down 1.84%. Hexaware Technologies fell 3.01% among mid caps, while Newgen Software’s 6.63% drop marked it as the most significant small-cap loser.
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Foreign Institutional and Domestic Institutional Activity
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) played a pivotal role in shaping market direction today. While detailed net inflow/outflow figures are yet to be disclosed, the strong recovery in large caps suggests renewed buying interest from FIIs, who have been cautious in recent sessions. DIIs likely continued their steady accumulation, providing support amid global uncertainties.
Global Cues and Their Impact
Global markets exhibited mixed trends, with US indices showing modest gains while European markets traded cautiously amid ongoing geopolitical tensions and economic data releases. Asian markets were broadly positive, which helped bolster investor confidence in India. The rupee remained stable against the US dollar, aiding foreign inflows and supporting the equity rally.
Upcoming Corporate Results to Watch
Investors are eyeing the upcoming quarterly results season, with Schaeffler India scheduled to announce its earnings on 24 Feb 2026. Market participants will closely monitor the company’s performance for cues on sectoral demand and margin trends, which could influence broader market sentiment in the days ahead.
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Market Outlook and Investor Takeaways
Today’s market action underscores the resilience of large-cap stocks and the importance of sectoral leadership in driving broader indices. The strong performance of the NiftyCPSE sector highlights renewed investor interest in public sector enterprises, which may continue to attract capital given their strategic importance and improving fundamentals.
However, the underperformance of mid and small caps suggests that investors remain selective, favouring quality and liquidity over speculative bets. The technical setup, with the Sensex below its 50DMA but the 50DMA above the 200DMA, indicates a cautious but constructive environment. Investors should monitor global developments and domestic earnings closely to gauge the sustainability of the current rally.
Overall, the market appears poised for measured gains, with large caps providing a stable foundation amid ongoing volatility. Diversification across sectors and market capitalisations, combined with a focus on fundamentally strong stocks, remains the prudent strategy for investors navigating the current landscape.
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