Sensex and Nifty Performance Overview

The Sensex opened the day on a cautious note, down 225.65 points, but quickly reversed course to gain 754.53 points intraday before settling with a net gain of 528.88 points, or 0.64%, at 83,027.02. The index remains 3.77% below its 52-week high of 86,159.02, indicating some room for upside momentum. Meanwhile, the Nifty 50 mirrored this trend, supported by large-cap strength and sectoral breadth.

Technically, the Sensex is trading below its 50-day moving average (DMA), which itself is positioned above the 200-DMA, suggesting a mixed but cautiously optimistic medium-term trend. Large caps led the charge, with the BSE 100 index rising 0.65%, while midcaps and small caps lagged, falling 1.22% and 3.21% respectively. This divergence highlights investor preference for quality and liquidity amid ongoing market uncertainties.

Sectoral Trends: Power Powers Ahead, IT Faces Headwinds

Out of 38 sectors tracked on the BSE, 34 advanced while only 4 declined, reflecting broad-based buying interest. The power sector emerged as the top gainer, surging 2.12%, driven by strong performances in key utilities and infrastructure companies. This sector’s resilience was underpinned by positive earnings outlooks and government initiatives supporting renewable energy and grid expansion.

Conversely, the IT sector was the sole major laggard, declining 0.65%. Pressure on IT stocks was attributed to concerns over margin pressures and cautious client spending outlooks amid global economic uncertainties. Notable IT names such as Persistent Systems fell 3.25%, while midcap IT player Hexaware Technologies declined 3.89%, reflecting sector-wide weakness.

Top Gainers and Losers Across Market Caps

Among the BSE 500 stocks, Apar Industries led the gainers with a 5.15% rise, closely followed by Thermax at 5.13% and ABB India at 4.98%. Thermax also topped the midcap gainers list with a 5.13% increase, while Tube Investments was the best-performing large cap, up 4.29%. Small caps were mixed, with Novartis India surging 20.00%, a standout performance, while Transworld Shipping declined 9.61%, the largest small-cap loser.

On the downside, Newgen Software was the biggest loser in the BSE 500, plunging 8.07%, followed by Firstsource Solutions (-6.34%) and OneSource Specialty Products (-4.81%). These declines reflect sector-specific challenges and profit booking after recent rallies.

Market Breadth and Institutional Activity

The advance-decline ratio across the BSE 500 was positive at 1.35x, with 288 advances against 213 declines, signalling broad market participation. This breadth supports the notion of a healthy rally rather than a narrow, index-driven move.

Foreign institutional investors continued to be net buyers, providing crucial support to the market. Domestic institutional investors showed mixed activity, with some profit-taking in mid and small caps, which contributed to the underperformance of these segments relative to large caps.

Global Cues and Outlook

Global markets exhibited mixed trends today, with US indices recovering from earlier losses amid easing inflation concerns, while European markets remained cautious ahead of key economic data releases. Asian markets were broadly positive, reflecting optimism over China’s economic reopening and stimulus measures.

These global developments lent support to the Indian market’s recovery, although investors remain watchful of geopolitical tensions and central bank policy signals that could influence risk appetite in the near term.

Upcoming Corporate Results to Watch

Investors will closely monitor Schaeffler India’s quarterly results scheduled for 24 Feb 2026. The company’s performance will be scrutinised for insights into the auto components sector, which has been navigating supply chain challenges and fluctuating demand.

Investor Takeaway

Today’s market action reflects a cautious but constructive environment, with large caps and defensive sectors like power attracting buying interest. The underperformance of mid and small caps, alongside IT sector weakness, suggests selective stock picking remains crucial. Investors should monitor upcoming earnings and global developments closely, as these will likely dictate market direction in the near term.

With the Sensex still below its 50-DMA but supported by a positive 50DMA-200DMA alignment, the technical setup favours a gradual recovery, provided global cues remain stable and domestic economic data supports growth expectations.

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