Indian Market Recap: Monday, Monday, February 9, 2026

Executive Summary

The Indian equity markets commenced the trading week with decisive bullish momentum on Monday, Monday, February 9, 2026. Benchmark indices finished significantly higher, buoyed by a transformative India-US Interim Trade Framework and a stellar earnings report from the State Bank of India. The Nifty 50 settled at 25,867.30, gaining 173.60 points (0.68%), while the BSE Sensex reclaimed the 84,000 psychological mark to close at 84,065.75, up 485.35 points (0.58%). Market sentiment was further bolstered by global milestones, including the Dow Jones Industrial Average crossing the historic 50,000 level for the first time and a decisive election victory in Japan.

Market Mechanics: Intraday Analysis

Trading on Monday, Monday, February 9, 2026, was characterized by consistent buying interest from the opening bell. The Nifty 50 opened at 25,808.50 and maintained a steady upward trajectory, reaching an intraday high of 25,922.25 before a slight cooling off toward the close. The index hit a session low of 25,780.90, demonstrating a resilient floor for the day. Similarly, the Sensex opened at 83,995.64 and scaled an intraday peak of 84,314.68. The Bank Nifty outperformed the broader benchmarks, opening at 60,805.20 and closing at 60,669.35, a gain of 0.91%, primarily fueled by PSU banking strength.

Benchmark Performance Table

Top Movers Analysis

Top 5 NSE Gainers

1. State Bank of India (SBIN): +7.63% (Closing: ₹1,147.80) - The banking behemoth was the undisputed star of the session after reporting a record Q3 FY26 net profit of ₹21,028 crore (up 24.5% YoY). Investors cheered the significant improvement in asset quality, with Gross NPA falling to 1.57%.
2. Shriram Finance: +6.03% (Closing: ₹1,063.00) - Rallied on the back of strong credit growth expectations and favorable macroeconomic outlooks for the NBFC sector.
3. Grasim Industries Ltd: +3.11% (Closing: ₹2,925.00) - Witnessed heavy buying interest as demand for core industrial materials showed signs of a cyclical upturn.
4. Titan Company Limited: +3.04% (Closing: ₹4,267.00) - Benefited from the India-US trade deal news, which is expected to lower tariffs on jewelry exports to 18%.
5. Dr Reddy's Laboratories Ltd: +2.8% (Closing: ₹1,276.00) - Led the pharma pack as investors rotated into defensive names with high export exposure.

Top 5 NSE Losers

1. Max Healthcare Institute Ltd: -2.82% (Closing: ₹1,010.50) - Faced significant profit booking following a period of sustained outperformance.
2. NTPC Ltd: -1.05% (Closing: ₹361.20) - Weakened as the energy sector faced relative underperformance amid a rotation into financials and realty.
3. ITC Ltd: -0.95% (Closing: ₹322.70) - The FMCG giant faced margin pressure concerns, leading to a mild correction.
4. Oil and Natural Gas Corporation Ltd: -0.84% (Closing: ₹266.70) - Impacted by news that Indian refiners are avoiding Russian oil to facilitate US trade relations, potentially affecting domestic upstream dynamics.
5. ICICI Bank Ltd: -0.78% (Closing: ₹1,395.10) - Witnessed minor distribution as institutional investors rebalanced portfolios toward PSU banks.

Sectoral Deep Dive

• Realty (+2.61%): The top-performing sector of the day. The Nifty Realty index was driven by post-Budget optimism and favorable policy tailwinds for urban infrastructure.
• Metal (+1.56%): Gained on the back of improving global demand and a favorable US trade outlook for industrial exports.
• Pharma (+1.50%): Investors sought refuge in high-quality healthcare names, particularly those with a large US footprint like Dr Reddy's.
• Banking (+0.91%): While the headline figure was strong, the PSU Bank sub-index (+3.34%) far outpaced private peers, fueled by SBI's stellar results.
• Auto (+0.99%): Supported by optimism regarding rural demand recovery and potential export benefits from the new trade framework.
• FMCG (+0.32%): Remained a laggard as inflationary concerns in select raw materials dampened enthusiasm.
• IT (+0.02%): Effectively flat for the day as investors shifted capital away from growth-oriented technology stocks toward cyclical value plays.

Institutional Activity and Market Breadth

Foreign Institutional Investors (FIIs) returned to the Indian markets with conviction, recording a net purchase of ₹2,254.6 crore in the cash segment. This influx of capital was a primary driver of the large-cap rally. Domestic Institutional Investors (DIIs) remained nearly neutral, with a marginal net buy of ₹4.2 crore, suggesting a period of portfolio rebalancing.

Market breadth was overwhelmingly positive, confirming the health of the rally. On the NSE, 3,003 stocks advanced compared to 1,181 declines, resulting in an advance-decline ratio of 2.54:1. This broad-based participation, especially in the smallcap (+2.64%) and midcap (+1.58%) segments, indicates strong retail and HNI appetite.

Global Factors Impact

• US Markets: The Dow Jones Industrial Average surged above the 50,000 milestone to close at 50,135.87 (+0.04%), while the Nasdaq rallied 0.90%. This record-breaking performance in the US provided a 'risk-on' backdrop for the Indian open.
• Asian Markets: A massive rally in Japan, where the Nikkei 225 jumped 4.12% to 57,748.77 following PM Sanae Takaichi's election victory, set a bullish tone across the continent. South Korea's KOSPI (+3.94%) and the Hang Seng (+1.7%) also posted substantial gains.
• Commodities & Currency: Brent Crude was stable at $68.26, which is comfortable for India's fiscal math. However, the USD/INR closed at 90.76, as the dollar remained strong against emerging market currencies despite the trade deal progress.

Key News Impact Analysis

1. India-US Interim Trade Framework: The biggest catalyst of the day. The US reduction of reciprocal tariffs from 25% to 18% is a major win for Indian textiles, aerospace, and jewelry. India's commitment to purchase $500 billion from the US and shift away from Russian oil signals a strategic realignment that markets have priced in as a long-term positive.
2. SBI Record Profits: SBI's ₹21,028 crore Q3 profit serves as a proxy for the health of the Indian economy. The low NPA levels suggest that the credit cycle remains in a sweet spot.
3. Moody's GDP Projection: Moody's projecting 6.4% growth for FY27 reaffirms India's position as the fastest-growing major economy, encouraging long-term FII allocations.
4. NSE Financial Performance: NSE's own net profit rising 15% QoQ highlights the underlying strength and increasing participation in the Indian financial ecosystem.

Technical Outlook and Strategic Implications

Technically, the Nifty 50 has successfully defended its short-term moving averages and is now eyeing the psychological resistance of 26,000. The immediate support is pegged at the 25,750-25,800 zone. The RSI (Relative Strength Index) is trending upward but remains far from overbought territory, suggesting there is room for further appreciation.

For retail investors, the current market structure suggests a 'Buy on Dips' strategy. The strength in the broader market (Mid/Small-caps) suggests that the rally is not top-heavy. Sectors like PSU Banking, Realty, and Export-oriented Pharma/Textiles appear well-positioned to benefit from the current macroeconomic catalysts. However, caution is advised in the IT sector until clearer global spending trends emerge.