Sensex and Nifty Trends
The BSE Sensex opened sharply lower by 225.65 points but staged a robust comeback, gaining 582.59 points during the session to close with a net gain of 356.94 points, or 0.43%, at 82,855.08. This level places the benchmark index approximately 3.99% below its 52-week high of 86,159.02, signalling some room for upside momentum if positive catalysts emerge. The Nifty 50 mirrored this recovery, supported by strong buying interest in heavyweight stocks.
Technically, the Sensex is trading below its 50-day moving average (DMA), which itself remains above the 200-DMA, indicating a cautiously bullish medium-term trend. The 50-DMA acting as resistance suggests investors are awaiting clearer signals before committing aggressively.
Sectoral Performance and Market Breadth
Out of 38 sectors tracked on the BSE, 34 advanced while only 4 declined, reflecting broad-based strength. The power sector emerged as the top performer, gaining 2.07%, buoyed by robust demand outlook and favourable policy developments. Conversely, the IT sector was the laggard, falling 0.81%, pressured by profit booking and subdued global tech demand.
Large caps led the market rally with the Sensex gaining 0.43%, while mid caps and small caps underperformed. The BSE 100 index rose 0.46%, but the midcap index declined 1.22% and the small cap index fell 3.21%, indicating selective buying in blue-chip stocks amid risk aversion in smaller companies.
Market breadth was positive with 281 advances against 218 declines across the BSE 500, yielding an advance-decline ratio of 1.29x. This suggests a healthy participation in the rally, though the underperformance of mid and small caps warrants caution for investors seeking broader market exposure.
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Top Gainers and Losers
Among large caps, Canara Bank was the top gainer, surging 2.91% on expectations of improved asset quality and strong quarterly results ahead. Mid caps saw Brainbees Solutions rally 5.10%, while small caps were led by VL E-Governance with a remarkable 19.88% gain, reflecting renewed investor interest in niche technology plays.
On the downside, large cap Persistent Systems declined 3.38%, weighed down by profit booking and cautious guidance. Mid cap Hexaware Technologies fell 4.57%, impacted by weak global IT spending trends. Small cap Newgen Software was the biggest loser, dropping 7.75%, amid sector rotation and profit-taking.
Other notable BSE 500 gainers included ABB India (+8.47%), Apar Industries (+5.46%), and Siemens (+5.17%), all benefiting from strong order inflows and positive earnings revisions. Conversely, Firstsource Solutions declined 7.25%, adding to the IT sector weakness.
Foreign and Domestic Institutional Activity
Foreign institutional investors exhibited mixed behaviour, with moderate buying offset by profit booking in select sectors. Domestic institutional investors remained cautious but supported large caps selectively. This mixed FII/DII activity reflects ongoing global uncertainties, including concerns over interest rate policies and geopolitical tensions, which continue to influence capital flows into Indian equities.
Global Cues and Outlook
Global markets were subdued ahead of key economic data releases and central bank meetings. Asian indices showed mixed performances, while US markets closed marginally higher on easing inflation concerns. Crude oil prices remained volatile, impacting energy-related stocks. The cautious global backdrop has led Indian investors to favour defensive sectors and large caps, while mid and small caps face pressure.
Looking ahead, investors will closely monitor the upcoming quarterly earnings season, with Schaeffler India scheduled to report on 24 Feb 2026. Corporate results and macroeconomic data will be critical in shaping market direction in the near term.
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Investor Takeaways
The market’s sharp recovery from early losses highlights underlying resilience in large caps and key sectors such as power. However, the divergence between large caps and mid/small caps suggests investors remain selective, favouring quality and liquidity amid global uncertainties. The advance-decline ratio above 1.2x is encouraging but the underperformance of mid and small caps warrants caution for those seeking broader market exposure.
Investors should monitor technical levels closely, especially the Sensex’s 50-DMA resistance, and remain alert to global developments and domestic earnings trends. The upcoming results season, including Schaeffler India’s report on 24 Feb, will provide fresh cues on corporate health and sectoral momentum.
Overall, a balanced approach focusing on fundamentally strong large caps and selective mid caps with robust earnings visibility is advisable in the current environment.
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