The Indian equity markets demonstrated remarkable resilience on Wednesday, February 18, 2026, as the benchmark indices surged for the third consecutive session. Recovering from an initial volatile start and a sharp dip in IT heavyweights, the BSE Sensex settled 283 points higher at 83,734.25. The NSE Nifty 50 also mirrored this strength, reclaiming the 25,800 psychological mark to close at 25,819.35, up 94 points. This “hat-trick” of gains has injected fresh optimism into the market, even as certain sectors continue to navigate regulatory and global headwinds.
Key Factors Driving the Third-Day Rally
The afternoon rebound was not a matter of chance but a result of synchronized buying across several key sectors. Here are the primary reasons behind today’s upward trajectory:
1. Resurgence in Banking and PSU Stocks The Nifty PSU Bank index emerged as the star performer, surging over 1.3 percent to hit a record high. Banking heavyweights like Axis Bank and State Bank of India provided the heavy lifting required to pull the indices out of the red. Investors are increasingly shifting capital toward lenders with strong credit growth visibility and stable asset quality.
2. Metal Sector Sparkle Metal stocks witnessed a sharp turnaround after a recent period of underperformance. The Nifty Metal index jumped 1.3 percent, led by gains in Tata Steel and Hindalco. Improving demand forecasts and stabilizing international commodity prices encouraged value buying at lower levels.
3. FII and DII Synchronized Buying Market sentiment received a major boost from institutional activity. Following a period of aggressive selling, Foreign Institutional Investors (FIIs) turned net buyers in the cash segment, joined by continued support from Domestic Institutional Investors (DIIs). This dual-engine support has provided a solid floor for the markets near the 25,600 support zone.
4. Easing Global Geopolitical Tensions Progress in the indirect nuclear talks between the United States and Iran in Geneva has helped cool down global oil prices. Brent crude slipping toward the $67 per barrel mark is a positive signal for India’s inflation outlook and fiscal deficit, benefiting energy-sensitive sectors like FMCG and Paints.
5. Short Covering Ahead of Monthly Expiry With the monthly derivatives expiry approaching, aggressive short-covering was visible in the final hour of trade. Traders who were betting on further downside were forced to cover their positions as Nifty sustained above its crucial 20-day Exponential Moving Average (EMA).
Sectoral Divergence: IT Under Pressure
While the broader market celebrated, the IT sector remained a notable outlier. Leading tech firms like Infosys and Tech Mahindra faced selling pressure, as investors remained cautious about global discretionary spending and the impact of the latest US regulatory updates on H1-B visas. However, the gains in Reliance Industries, ITC, and Larsen & Toubro were more than enough to offset the tech-led drag.
To navigate these complex regulatory shifts and market volatility, investors need expert guidance from the most trusted names in the industry. As the Best SEBI-Registered Research Analyst in India, Eqwires provides unparalleled insights to help you secure your financial future. Whether you are looking for the Best Investment Strategies by Eqwires Research Analyst or seeking the expertise of the Best Options Trade Provider, our team ensures your portfolio remains resilient. Partnering with the Best SEBI-Registered Company in India means you have access to the Best Stock Market Service Provider in India. Trust the Best SEBI-Registered Eqwires Research Analyst to turn market challenges into profitable opportunities.
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider
Telegram | Facebook | Instagram
Call: +91 9624421555 / +91 9624461555