Indian Equity Markets Rally for Second Straight Session on Tuesday, Tuesday, February 17, 2026

1. Executive Summary

The Indian equity markets maintained their upward momentum for a second consecutive session on Tuesday, Tuesday, February 17, 2026. Domestic benchmark indices, the Nifty 50 and the BSE Sensex, closed in positive territory, driven by significant buying interest in the Information Technology (IT) and Public Sector Undertaking (PSU) banking sectors.

The BSE Sensex gained 173.81 points, or 0.21%, to settle at 83,450.96, while the Nifty 50 advanced 42.65 points, or 0.17%, to end the trading day at 25,725.40. The Bank Nifty emerged as a clear outperformer, climbing 0.37% to close at 61,174.00. Market sentiment was buoyed by high-profile corporate announcements in the artificial intelligence (AI) space and a historic milestone for PSU banks, which reached a fresh all-time high.

2. Market Mechanics: Opening, Intraday, and Closing Analysis

The trading session on Tuesday, Tuesday, February 17, 2026, began with a cautious tone. The Nifty 50 opened at 25,637.95, while the Sensex commenced at 83,197.67. Early morning trade was characterized by mild selling pressure, with the Nifty testing an intraday low of 25,570.30 and the Sensex dipping to 82,987.43.

However, a sharp recovery was witnessed in the afternoon session. Strategic buying in heavyweight stocks pushed the Nifty to an intraday high of 25,764.40 and the Sensex to 83,598.00. The recovery was notably resilient, as the indices managed to claw back nearly 90 points from their lows. The ability of the Nifty to sustain above the 25,700 psychological level by the close suggests that bulls remain in control of the short-term trend.

3. Benchmark Performance Table

4. Top Movers Analysis

Top 5 Gainers (NSE)

1. Adani Enterprises Limited (+2.74%): The conglomerate's flagship stock closed at ₹2,244.40. The surge followed the massive announcement of a USD 100 billion investment commitment toward Sovereign AI Infrastructure, including renewable-energy-powered data centers.
2. ITC Limited (+2.34%): Settling at ₹325.40, the FMCG giant saw significant volume of 39.36 million shares, serving as a defensive hedge for investors amid global uncertainty.
3. Bharat Electronics Limited (BEL) (+1.97%): Closing at ₹446.65, the defence PSU rallied on news of potential new orders coinciding with the French President's visit to India.
4. Infosys Limited (+1.88%): Ending at ₹1,391.30, the IT major benefited from its strategic collaboration with Anthropic to deliver enterprise-grade AI solutions.
5. Larsen & Toubro Limited (+1.77%): The engineering titan closed at ₹4,275.80, reflecting continued confidence in the domestic capital expenditure cycle.

Top 5 Losers (NSE)

1. Kwality Limited (-5.00%): The stock hit the lower circuit at ₹27.95 with high volumes of 34.32 million, suggesting sharp institutional exits.
2. Hindalco Industries Limited (-1.87%): Closing at ₹890.50, the metal major was dragged down by a broad selloff in the commodity space.
3. Eternal Limited (-1.83%): Settling at ₹281.35, the stock faced profit-booking after its recent upward trajectory.
4. Tata Steel Limited (-1.42%): Closing at ₹202.89, the company struggled due to global concerns regarding Chinese demand and falling steel prices.
5. Trent Limited (-1.41%): The retail stock finished at ₹4,170.00 as investors locked in gains following a strong multi-week rally.

5. Sectoral Deep Dive

• Nifty PSU Bank (+2.36%): This was the star performer of the day, hitting a fresh all-time high. The move was catalyzed by the State Bank of India's (SBI) robust Q3FY26 net profit of ₹21,028 crore and a generalized improvement in asset quality across state-owned lenders.
• Nifty IT (+1.03%): The sector extended its recovery as the Infosys-Anthropic deal helped ease fears that AI would cannibalize traditional IT services. Instead, the market now views AI as a potential revenue driver for Indian tech firms.
• Nifty FMCG (+0.90%): Defensive buying and optimism regarding rural demand recovery supported gains in majors like ITC.
• Nifty Metal (-1.06%): This sector was the primary laggard. Falling precious metal prices and sluggish demand from China weighed heavily on Hindalco and Tata Steel.
• Nifty Realty (-0.30%): The sector saw minor profit-taking despite strong underlying demand in the residential housing market.

6. Institutional Activity

On Tuesday, Tuesday, February 17, 2026, both major institutional categories were net buyers, which is a significant signal of market strength.

• Foreign Institutional Investors (FIIs): FIIs turned net buyers, pumping in ₹995.21 crore. Their gross purchases stood at ₹8,867.62 crore against gross sales of ₹7,872.41 crore. This reversal from the previous day's selling suggests a tactical shift back toward Indian equities as valuations stabilize.
• Domestic Institutional Investors (DIIs): DIIs continued their support role, recording a net inflow of ₹187.04 crore. Their activity was high-volume, with gross purchases of ₹12,482.64 crore and gross sales of ₹12,295.60 crore.

The combined net institutional inflow of ₹1,182.25 crore provided the necessary liquidity to absorb early selling and push the indices into the green by the closing bell.

7. Market Breadth Analysis

The market breadth was overwhelmingly positive on Tuesday, Tuesday, February 17, 2026, indicating that the rally was not just restricted to heavyweight index stocks but was widespread across the broader market.

• NSE Breadth: 2,239 stocks advanced while 1,397 declined, yielding an advance-decline ratio of 1.60.
• BSE Breadth: 2,447 stocks advanced against 1,756 declines, an advance-decline ratio of 1.39.

Furthermore, the India VIX (Volatility Index) dropped to 12.67, a decline of approximately 5%. A VIX below the 13-level typically signals reduced fear and higher investor confidence in the stability of current price levels.

8. Global Factors Impact

• US Markets: US indices closed slightly higher on February 17, 2026. The Dow Jones rose 0.07%, the S&P 500 gained 0.1%, and the Nasdaq rose 0.14%. This provided a neutral-to-positive lead for Indian markets.
• Asian Markets: Performance was mixed ahead of the Lunar New Year. While the Nikkei 225 fell 0.94% and the Shanghai Composite dropped 1.26%, Hong Kong's Hang Seng managed a 0.52% gain.
• Commodities: Brent crude oil was priced at $67.21 per barrel, a level that remains manageable for India's inflation targets. Gold saw a significant correction, falling to approximately ₹1,56,430 per 10 grams.
• Currency: The USD/INR exchange rate stood at 90.74, reflecting a relatively stable Rupee despite a strengthening US Dollar Index (DXY) at 97.37.

9. Key News Impact Analysis

• Adani AI Infra: The USD 100 billion commitment is a massive long-term catalyst, shifting the group's perception from traditional infrastructure to a high-tech utility and AI infrastructure provider.
• Defence Sector Rally: The visit of French President Macron and Cochin Shipyard winning a ₹5,000 crore contract for Next Generation Survey Vessels fueled a rally in BEL and Cochin Shipyard, as indigenous defence manufacturing remains a priority.
• Ola Electric Downgrade: In a contrasting move to the broader market, Ola Electric shares hit a record low following a Citi downgrade. The 'Sell' rating and 51% target price cut highlighted concerns over EV penetration speed and service quality issues.
• Earnings Growth: Q3 earnings reports indicate a 16% profit expansion for the BSE 500, suggesting that the corporate earnings cycle in India is stabilizing after a lukewarm first half of the fiscal year.

10. Technical Outlook

Nifty 50: The Nifty's close at 25,725.40 is technically significant as it sits above the 25,700 mark. Immediate resistance is seen in the 25,800-25,850 zone. A breakout above this could lead the index toward the 26,000 psychological barrier. On the downside, 25,600 acts as immediate support.

Bank Nifty: With a close at 61,174, the index is hovering near its intraday high. The PSU Bank index at an all-time high provides a strong tailwind. Support for Bank Nifty is firmly placed at 60,500, while resistance is pegged at 61,250 and 61,500.

11. Strategic Implications for Retail Investors

For retail investors, the market action on Tuesday, Tuesday, February 17, 2026, reinforces a few key strategies:

1. Focus on PSU Banks: The structural turnaround in state-owned banks, evidenced by the all-time high index, suggests that these stocks are no longer just cyclical plays but value-unlocking candidates.
2. AI as a Theme: The announcements from Adani and Infosys highlight that AI is becoming a core theme for Indian large-caps. Investors should look for companies with clear AI implementation roadmaps.
3. Defensive Allocation: Given global volatility and commodity weakness, maintaining exposure to FMCG and high-quality IT can provide portfolio stability.
4. Caution in New-Age Tech: The Ola Electric plunge serves as a reminder to be cautious with high-valuation, new-age companies that face execution or quality hurdles.

Overall, the market remains in a "buy-on-dips" mode, supported by strong domestic participation and the return of FII interest.