The Indian equity markets demonstrated remarkable resilience on Friday, February 20, 2026, as benchmark indices successfully shook off early-morning jitters to end the session in green. After a volatile start fueled by lingering geopolitical tensions, the BSE Sensex surged 317 points to settle at 82,815, while the Nifty 50 climbed 117 points to close firmly above the crucial 25,550 level at 25,571. This recovery comes as a much-needed relief for investors following the massive 1,236-point crash witnessed in the previous session.
Intra-day Volatility and the Power of Recovery
The trading day began on a somber note, with the Nifty 50 opening nearly 65 points lower at 25,390 due to rising friction between the US and Iran. However, domestic institutional support and value-buying at lower levels triggered a sharp reversal. From the day’s low of 25,380, the Nifty rallied nearly 280 points to touch an intraday high of 25,663 before settling slightly lower.
Market analysts noted that the ability of the Nifty to reclaim and hold the 25,550 mark is a significant technical milestone. This “V-shaped” intraday recovery suggests that while global headwinds remain, the domestic appetite for quality large-cap stocks at discounted valuations is quite strong.
Sectoral Highlights: Power and Metals Lead, IT Falters
The rally was largely broad-based, with cyclical and domestic growth-oriented sectors leading the charge:
- Power and Infrastructure: The Power index was the standout performer, gaining over 2 percent. NTPC surged nearly 3 percent following news of its successful commissioning of a new solar project phase in Gujarat, while Larsen & Toubro (L&T) added 2.3 percent.
- Metals and Mining: Hindalco emerged as the top Nifty gainer, jumping over 3 percent, supported by a rebound in global commodity prices and Coal India’s steady performance.
- Banking and Financials: The Nifty Bank index saw a strong surge of over 400 points, reclaimed the 61,000 level, led by SBI, Kotak Mahindra Bank, and Axis Bank.
- IT Sector Lags: In contrast to the broader market optimism, the Nifty IT index was the primary laggard, slipping nearly 1 percent. Heavyweights like Infosys, Tech Mahindra, and HCLTech faced sustained selling pressure as investors reacted to cautious spending outlooks and profit-booking after recent peaks.
Global Cues and Macro Outlook
The domestic recovery took place against a backdrop of mixed global signals. While Asian markets like Japan’s Nikkei and Hong Kong’s Hang Seng traded lower, South Korea’s Kospi bucked the trend with a 2 percent gain. The Indian rupee remained relatively stable at 90.67 against the US dollar, providing a sense of calm to foreign investors.
Positive domestic data also played a role in boosting sentiment. The HSBC India Composite PMI rose to 59.3 in February, the highest level since November, indicating robust manufacturing and service sector output. Furthermore, India’s entry into the “Pax Silica” supply chain agreement is expected to bolster long-term security in semiconductors and AI infrastructure, providing a structural tailwind for the economy.
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