Market Extends Gains For Second Day As Nifty Tops 25,700 And Sensex Climbs 480 Points Amid Tariff Verdict Optimism Benchmarks Advance For Second Straight Session As Volatility Persists
| Index | Price | Change | % Chg |
| Nifty 50 | 25,713.00 | 141.75 | +0.55% |
| Nifty Bank | 61,264.25 | 92.25 | +0.15% |
| Nifty Financial | 28,455.00 | 244.40 | +0.87% |
| BSE SENSEX | 83,294.66 | 479.95 | +0.58% |
Indian equity markets began the week on a positive note, extending gains for a second consecutive session on February 23, with the Nifty decisively closing above the 25,700 mark amid notable intraday volatility. The 30-share BSE Sensex climbed 479.95 points, or 0.58 percent, to settle at 83,294.66, while the NSE Nifty advanced 141.75 points, or 0.55 percent, to close at 25,713.00.
During the session, the Sensex surged as much as 671.44 points to touch an intraday high of 83,486.15 before trimming some gains due to profit booking in the latter half. Similarly, the Nifty scaled an intraday high of 25,771.45, gaining 200.2 points at one stage, before settling slightly lower yet comfortably above the psychological 25,700 level. Despite volatility, both indices managed to close near their day’s highs, indicating sustained buying interest at lower levels.
The Bank Nifty ended marginally higher by 0.15 percent at 61,264.25 after initially opening in the red, reflecting selective strength in banking counters. The overall market tone remained constructive even as traders navigated global tariff-related uncertainties.
Here’s What Happened Today And Why Traders Reacted
The market opened strongly, buoyed by positive global cues after the US Supreme Court struck down former President Donald Trump’s sweeping tariff programme. The verdict was initially seen as a relief for global trade stability, encouraging buying across domestic equities, particularly in sectors linked to economic growth and consumption.
However, mid-session sentiment turned cautious after Trump imposed fresh temporary global tariffs of 15 percent on nearly all imports, up from 10 percent, injecting renewed uncertainty into global trade dynamics. This announcement triggered profit booking from intraday highs, causing the Sensex to fall nearly 500 points from its peak at one stage and pulling the Nifty below 25,650 briefly.
Despite the trimming of gains, the indices staged a recovery toward the close as domestic investors focused on improving fundamentals and sector-specific opportunities.
Key reasons traders reacted:
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US Supreme Court ruling against reciprocal tariffs
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Fresh 15% global tariff announcement
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Sectoral rotation into domestic themes
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Continued IT sector weakness
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Mixed global market cues
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, “The US Supreme Court’s ruling against Trump’s reciprocal tariff policy was welcomed by domestic markets. However, this is not sufficient to trigger a sustained rally. The market will respond only to fundamentals, which are fortunately improving.”
Sectoral Rotation Drives Gains While IT Remains Under Pressure
Sectorally, PSU Bank stocks led the charge, gaining 1.3 percent, as investors rotated into domestic banking plays amid expectations of resilient credit growth and improving asset quality. Auto, FMCG, pharma, oil & gas, and infrastructure sectors advanced between 0.5 and 0.83 percent, reflecting confidence in consumption and economic recovery themes.
Top Nifty gainers included Adani Ports (+2.81%), Kotak Mahindra Bank (+2.24%), HDFC Life (+1.97%), Dr Reddy’s Laboratories (+1.93%), and UltraTech Cement (+1.60%).
On the Sensex, Adani Ports, PowerGrid, Hindustan Unilever, HDFC Bank, Axis Bank, Bharti Airtel, SBI, Titan, Mahindra & Mahindra, and Larsen & Toubro were among key contributors.
Conversely, the IT index shed 1.42 percent as concerns over AI-led disruption and global demand uncertainty weighed on technology counters.
Top Losers (Nifty 50)
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Hindalco (-2.23%)
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Wipro (-1.89%)
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Infosys (-1.86%)
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Tech Mahindra (-1.35%)
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Cipla (-1.05%)
Metal stocks also fell 0.23 percent, while consumer durables and realty edged lower.
Sharp Stock-Specific Moves
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IDFC First Bank (-16%) after ₹590-crore fraud disclosure
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UPL (-14%) after restructuring approval
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AU Small Finance Bank (-5%) on Haryana govt de-empanelment
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DEE Development Engineers (+20%) on ₹173-crore order win
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Morepen Laboratories (+15%) on multi-year contract
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RailTel (+2%) on ₹1,136-crore LoI
Top Gainers And Losers – Sectors
Top Gaining Sectors
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PSU Bank (+1.30%)
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Auto (+0.83%)
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FMCG (+0.70%)
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Pharma (+0.56%)
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Oil & Gas (+0.49%)
Other gaining thematic indices:
Power, Private Bank, Infra, Capital Goods.
Top Losing Sectors
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IT (-1.42%)
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Consumer Durables (-0.26%)
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Metal (-0.23%)
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Realty (-0.19%)
Market Breadth Mixed Despite Over 110 Stocks Hitting 52-Week High
More than 110 stocks touched their 52-week highs, underscoring underlying strength across specific segments of the market. These included Indian Bank, Cummins India, Apar Industries, Bharat Forge, Polycab India, Max Financial, JB Chemicals, SBI Life Insurance, Union Bank of India, Bank of Baroda, Bank of Maharashtra, Hitachi Energy, SBI, L&T, NTPC, Bank of India, KEI Industries, Astral, and Voltas, among others.
At the same time, over 220 stocks hit their 52-week lows, including Hexaware Technologies, KPIT Technologies, Wipro, Afcons Infra, CE Info Systems, Info Edge, Inox Wind, Reliance Power, Cyient, Ola Electric, Concord Biotech, AAVAS Financiers, Just Dial, Suzlon Energy, LT Technology, Bata India, Mankind Pharma, and Clean Science.
Daily market action reflected mixed breadth:
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Advancers: 1,494
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Decliners: 1,675
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52-week Highs: 39 (NSE data variant)
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52-week Lows: 169
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High band hitters: 70
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Low band hitters: 78
The divergence between new highs and lows suggests stock-specific volatility rather than uniform strength.
Stock-Specific Moves Add Sharp Swings
Several counters saw dramatic movements:
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IDFC First Bank plunged 16% following reports of a ₹590-crore fraud.
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AU Small Finance Bank fell 5% after Haryana government de-empanelment.
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UPL tumbled 14% after approving a restructuring scheme.
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DEE Development Engineers surged 20% on a ₹173-crore order win.
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Morepen Laboratories jumped 15% on a multi-year contract.
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RailTel rose nearly 2% after securing a ₹1,136-crore LoI.
These sharp stock-specific actions added to the session’s volatility profile.
Global Cues, Crude, Rupee And Technical Levels In Focus
Asian markets ended mostly higher, with Hong Kong’s Hang Seng climbing 2.53 percent and South Korea’s Kospi rising nearly 1 percent, while Japan and China remained closed for holidays. European indices traded mixed, and US futures slipped ahead of Nvidia earnings.
Brent crude eased 0.38 percent to $71.49 per barrel. The rupee’s relative stability and declining US Treasury yields offered marginal comfort, though global tariff uncertainty persisted.
India VIX declined 1.35 percent to 14.17, suggesting volatility expectations remain moderate.
Technically, Nifty formed a small-bodied candle with shadows on both sides, signaling indecision. Immediate resistance lies in the 25,800–25,830 zone, while support is seen at 25,600–25,570.
Impact On Investors And Market Outlook
The second straight day of gains indicates resilience in domestic equities despite global uncertainties. Investors appear to be favoring sectors tied to domestic growth themes such as banks, power, FMCG, and auto, while remaining cautious on IT and export-oriented sectors.
Foreign Institutional Investors (FIIs) sold equities worth ₹934.61 crore on Friday, while Domestic Institutional Investors (DIIs) purchased ₹2,637.15 crore, providing net support. The market capitalisation of BSE-listed firms rose by over ₹2 lakh crore to ₹469 lakh crore.
While analysts describe the move as a relief rally, sustained upside will likely depend on earnings strength, clarity on global tariff policies, and stability in global markets.
For now, the market has extended its gains — but the path ahead remains shaped by both improving domestic fundamentals and evolving global uncertainties.
FAQs Sensex and Nifty Soars as US Court Verdict Sparks
1️⃣ Why Did The Sensex And Nifty Rally Despite Ongoing US Tariff Uncertainty?
The Indian stock market extended gains even after fresh US tariff announcements because investors reacted positively to the US Supreme Court’s decision striking down earlier sweeping tariffs. Domestic sectors such as PSU banks, auto, and FMCG saw strong buying as investors shifted focus toward improving Indian fundamentals rather than short-term global policy noise.
2️⃣ Why Did IT Stocks Continue To Fall Even As The Broader Market Closed Higher?
IT stocks remained under pressure due to global brokerage downgrades and continued concerns about AI-driven disruption altering traditional revenue models. Additionally, weak global cues and tariff-related uncertainty weighed on export-oriented sectors like IT, leading to underperformance compared to domestically driven sectors.
3️⃣ What Does It Mean When Over 110 Stocks Hit 52-Week Highs While 220 Stocks Touch Lows On The Same Day?
This divergence signals stock-specific volatility rather than broad-based momentum. It indicates sector rotation — where investors are aggressively buying select domestic-facing companies while exiting weak earnings stories, overvalued midcaps, or global exposure plays.
4️⃣ How Does The US Supreme Court Tariff Verdict Impact Indian Equity Markets In The Short Term?
The verdict reduces immediate global trade uncertainty and supports risk appetite. However, the subsequent 15% tariff announcement reintroduced volatility. For Indian markets, the net effect is likely a short-term relief rally rather than a sustained structural uptrend unless global clarity improves.
5️⃣ Why Did PSU Bank And Auto Stocks Outperform While Metal And IT Stocks Lagged?
PSU banks benefited from expectations of improving credit growth and stronger domestic demand. Auto and FMCG stocks gained on resilience in consumption themes. Meanwhile, metal stocks faced pressure due to global growth uncertainty and IT stocks declined because of global demand slowdown fears and AI-related business model risks.
6️⃣ What Technical Levels Should Traders Watch After Nifty Closed Above 25,700?
Analysts suggest that the 25,800–25,830 zone acts as immediate resistance. A sustained move above 25,830 could trigger a rally toward 26,000. On the downside, 25,600–25,570 is seen as strong support. A break below 25,590 may signal loss of upward momentum.
7️⃣ How Do FII And DII Flows Influence Market Stability During Volatile Sessions?
Foreign Institutional Investors (FIIs) sold equities worth ₹934.61 crore recently, but Domestic Institutional Investors (DIIs) bought ₹2,637.15 crore, providing support. When DIIs outpace FIIs in volatile phases, it often stabilizes markets and prevents deeper corrections, reflecting strong domestic liquidity.
