Market Snapshot

The Indian benchmarks maintained their upward momentum for the second consecutive session on Monday, February 23, 2026. The BSE Sensex surged 479.95 points, or 0.58%, to settle at 83,294.66, while the NSE Nifty 50 advanced 141.75 points, or 0.55%, to close at 25,713. Despite the headline gains, the market breadth remained slightly tilted toward the bears, as nearly 2,400 stocks declined against 1,900 advances. The total market capitalization of BSE-listed companies grew by approximately ₹2 lakh crore, reaching a total of ₹469 lakh crore.

Institutional Flows: Cash Market

In a notable reversal of recent trends, foreign investors led the charge today, while domestic institutions appeared to book profits at higher levels. According to provisional data from the exchanges:

• Foreign Institutional Investors (FIIs): Net BUYERS of ₹3,483.70 crore.
• Domestic Institutional Investors (DIIs): Net SELLERS of ₹1,292.24 crore.

This surge in FII activity follows a period of persistent selling earlier in the month and suggests a renewed interest in Indian heavyweights, particularly in the banking and power sectors.

Derivatives Market Activity

The derivatives segment reflected a cautiously optimistic sentiment. The India VIX, a gauge of market volatility, cooled down by 1.35% to settle at 14.17, indicating a reduction in near-term fear among traders.

• Nifty futures saw a steady build-up of Open Interest (OI) at the 25,800 and 25,900 call strikes, which are likely to act as immediate resistance levels.
• On the downside, the 25,500 level continues to emerge as a robust support zone for the current expiry.
• Sectoral rotation was evident as traders shifted focus from IT—which saw a 1.42% decline in its index—to PSU Banks and Financial Services, which witnessed significant long build-ups.

Key Drivers and Outlook

The primary catalyst for the day’s rally was the US Supreme Court’s decision to strike down the sweeping "reciprocal tariffs" previously announced by the Trump administration. This provided a massive sigh of relief to global trade-dependent economies, including India. Additionally, India’s forex reserves reaching a record high of $725.7 billion bolstered the Rupee and investor confidence.

However, the outlook remains clouded by sector-specific challenges and evolving trade policies:

• IT Sector Under Pressure: Tech stocks like Infosys and Wipro fell nearly 2% due to ongoing concerns regarding AI-driven disruptions and the threat of a revised 15% global tariff from the US.
• Banking Divergence: While PSU banks rallied, IDFC First Bank plummeted over 16% following reports of fraudulent transactions at a Chandigarh branch.
• Commodity Influence: Easing Brent crude prices, trading near $71 per barrel, provided a favorable backdrop for Indian macros.

Investors should remain vigilant as the market navigates the push-and-pull between positive judicial rulings in the US and the potential for new executive trade actions.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: FII DII Stock Market Institutional Investors Nifty Sensex