Nifty Reclaims 25,550 as Sensex Rises 317 Points; Power and Metal Lead, IT Drags Recovery
| Index | Price | Change | % Chg |
| Nifty 50 | 25,571.25 | 116.90 | +0.46% |
| Nifty Bank | 61,172.00 | 432.45 | +0.71% |
| Nifty Financial | 28,210.60 | 141.10 | +0.50% |
| BSE SENSEX | 82,814.71 | 316.57 | +0.38% |
Indian benchmark indices staged a strong rebound on February 20, recovering sharply from intraday lows and snapping part of the previous session’s heavy losses. The Nifty 50 closed above the crucial 25,550 mark, while the BSE Sensex ended 316.57 points higher, supported by broad-based buying in banks, metals, power, and capital goods stocks. However, IT stocks remained under pressure, limiting the overall upside.
At the close, the Nifty 50 settled at 25,571.25, up 116.90 points or 0.46 percent. The Sensex rose 0.38 percent to end at 82,814.71. The Bank Nifty also rebounded, climbing 0.71 percent to close at 61,172.00.
The recovery helped the market capitalisation of BSE-listed companies increase by ₹1.74 lakh crore during the session.
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Markets Recover from Day’s Lows Amid Broad-Based Buying
After opening weak amid rising US–Iran geopolitical tensions, elevated crude oil prices, and continued weakness in IT stocks, the indices bounced back strongly. The rally gathered pace through the session, pushing the Nifty to an intraday high of 25,663.55 before mild last-hour profit booking capped gains.
The rebound followed Thursday’s sharp selloff, when markets had corrected nearly 1.5 percent. Friday’s bounce was largely attributed to value buying in large-cap stocks, especially banks and metals, which offered better risk-reward compared to premium-valued midcaps.
A positive candle with an upper shadow was formed on the daily chart, indicating an attempt to stabilise after a sharp fall. Analysts noted that the Nifty has failed to show sustained follow-through weakness after recent corrections, raising expectations of a short-term relief rally.
Sectoral Action: PSU Banks, Metals and Power Shine
Sectorally, gains were broad-based except for IT and media.
The top gaining sectors included:
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Metal (+1.25%)
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FMCG (+0.56%)
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Oil & Gas (+0.47%)
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Auto (+0.41%)
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Realty (+0.35%)
PSU banks were standout performers, rising 5.5 percent for the week and extending their two-week gains to 8.9 percent on post-earnings optimism. Private banks and financials also gained 0.8 percent and 0.3 percent for the week, though they underperformed PSU peers.
On the losing side, the IT index fell 0.98 percent amid ongoing concerns over AI disruption and earnings visibility. Media stocks also closed slightly lower.
Top Gainers and Losers on Nifty
Among individual stocks, the top gainers were:
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Hindalco (+3.21%)
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NTPC (+2.64%)
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Larsen & Toubro (+2.33%)
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SBI Life (+1.81%)
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Hindustan Unilever (+1.71%)
On the flip side, the top losers included:
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KWIL (-3.46%)
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Eternal (-1.31%)
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Infosys (-1.28%)
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Tech Mahindra (-1.03%)
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Grasim (-1.02%)
IT majors continued to act as a drag on the broader market.
Broader Markets Mixed; 200+ Stocks Hit 52-Week Lows
Broader indices delivered a mixed performance. The Nifty Midcap index gained 0.5 percent, while the Smallcap index closed marginally in the red.
Despite the rebound in frontline indices, market breadth remained cautious. Over 200 stocks touched their 52-week lows, including names such as Firstsource Solutions, Ola Electric, Clean Science, Just Dial, Suzlon Energy, Bata India, and Wipro, among others.
The daily market action showed 1,521 advances against 1,623 declines, reflecting selective buying rather than broad-based risk appetite.
Weekly Performance: Marginal Gains Despite Volatility
For the week, the Nifty rose 0.4 percent and the Sensex added 0.2 percent. Twelve of the 16 major sectors logged weekly gains.
Energy stocks gained 2.4 percent for the week, while FMCG rose 1.7 percent. PSU banks led sectoral gains. Meanwhile, broader smallcaps fell 0.2 percent and midcaps added 0.1 percent.
IT stocks remained the biggest dampener during the week, as concerns over AI-led disruption and global tech uncertainties weighed on sentiment.
India VIX Spikes; Rupee Nears 91 per Dollar
Volatility remained elevated. The India VIX surged 6.7 percent to settle at 14.36, just shy of an eight-month high seen during the Union Budget session.
Meanwhile, the rupee weakened to close at 90.9825 per dollar, down 0.3 percent for the day and 0.4 percent for the week. Traders indicated that central bank intervention helped keep the currency above the 91 mark despite broad-based dollar demand.
Why Markets Recovered After Thursday’s Selloff
The rebound was driven by three clear factors:
1️⃣ Value Buying After 1.5% Correction
Thursday’s sharp decline had pushed several large-cap banking, metal, and capital goods stocks toward short-term support levels. Friday’s session saw tactical accumulation in these segments as investors capitalized on improved risk-reward profiles. PSU banks extended their recent strength, with the sector index rising over 1% during the session and nearly 5.5% for the week.
2️⃣ Earnings Recovery Narrative Intact
Despite global uncertainty, domestic earnings momentum remains relatively resilient. Q3 results reinforced confidence in banking and industrial names, supporting institutional buying in large caps. Investors rotated toward quality balance sheets amid persistent global volatility.
3️⃣ Technical Bounce From Key Support
The Nifty defended the 25,350–25,400 support zone, triggering short covering and algorithmic buying. A positive daily candle with an upper shadow suggests buyers remain active, though resistance near 25,650–25,700 continues to cap aggressive upside.
What Analysts Are Saying
VK Vijayakumar of Geojit Investments said geopolitical uncertainty remains a key risk, especially if crude oil prices surge further due to US–Iran tensions. However, he highlighted the strength of India’s domestic economy and improving corporate earnings as supportive factors.
Sunil Singhania of Abakkus AMC noted that while valuations have improved after prolonged underperformance, geopolitical risks and AI disruption could continue to create near-term volatility.
Global Markets Snapshot
Global cues were mixed:
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Stoxx Europe 600 rose 0.3%
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S&P 500 futures rose 0.3%
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Nasdaq 100 futures rose 0.3%
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MSCI Asia Pacific Index fell 0.4%
Markets globally remain sensitive to developments in West Asia and crude oil supply risks.
Outlook: Relief Rally Possible, But Volatility to Persist
Technically, Nifty is placed near key support around 25,400. A sustainable move above the 25,650–25,700 zone could open another round of relief rally.
However, with India VIX elevated and geopolitical tensions unresolved, markets are likely to remain flow-driven. The prevailing strategy among analysts remains “buy on dips, sell on rallies” until clearer directional triggers emerge.
For now, Friday’s bounce signals resilience — but sustained momentum will depend on global stability, crude oil trends, and continued earnings recovery.
FAQ Nifty 50 Ends Higher as Power and Metal Stocks Gain
1️⃣ Why did Nifty close above 25,550 despite rising US–Iran tensions and higher crude prices?
Nifty managed to close above 25,550 due to strong value buying in banking, metal, and power stocks after Thursday’s sharp correction. Investors selectively accumulated large-cap stocks with better risk-reward ratios, which offset weakness in IT shares and concerns over geopolitical tensions.
2️⃣ How did PSU banks outperform private banks during this week’s market rebound?
PSU banks surged 5.5% for the week, supported by post-earnings optimism and improving asset quality trends. In contrast, private banks rose only 0.8% as investors shifted toward relatively cheaper PSU valuations after prolonged underperformance in the sector.
3️⃣ What does the spike in India VIX to 14.36 indicate for short-term traders?
The 6.7% spike in India VIX signals heightened near-term volatility expectations. For traders, this implies wider intraday swings, increased option premiums, and a greater need for disciplined position sizing, especially amid geopolitical uncertainties.
4️⃣ Why did IT stocks fall even as broader markets rebounded sharply?
IT stocks remained under pressure due to ongoing concerns about AI-led disruption, earnings visibility challenges, and persistent FII selling in the technology sector. Global uncertainty and cautious commentary from brokerages have also capped short-term upside.
5️⃣ How significant is the 25,350 support level for Nifty in the coming sessions?
The 25,350 zone is viewed as immediate technical support. A sustained breakdown below this level could expose the index to deeper correction toward 25,000. Conversely, holding above this level keeps the possibility of a relief rally intact.
6️⃣ Why did more than 200 stocks hit 52-week lows despite benchmark gains?
The rally was largely concentrated in select large-cap banking and metal stocks, while broader participation remained weak. Continued pressure in midcaps, smallcaps, and IT stocks led to over 200 counters touching fresh 52-week lows, reflecting cautious investor sentiment.
7️⃣ How could crude oil prices near $72 impact Indian markets in the near term?
Rising crude oil prices increase inflationary pressure, widen India’s trade deficit, and impact corporate margins—especially for oil marketing companies and transport-intensive sectors. Sustained crude above $72 could limit upside momentum in equities unless geopolitical tensions ease.
