Last Updated on February 16, 2026 5:32 pm by BIZNAMA NEWS
BIZ DESK
Indian benchmark indices staged a powerful late-session recovery on Monday, February 16, 2026, effectively snapping a two-day losing streak. Despite a cautious start influenced by weak global cues and fresh regulatory updates, the Nifty 50 surged 0.83% to close at 25,682.75, while the S&P BSE Sensex climbed 0.79% to finish at 83,277.15.
The rally was primarily anchored by banking heavyweights and a resurgence in the power and pharma sectors, helping investors recover approximately ₹3 lakh crore in market wealth in a single day.
Sectoral Performance & Highlights
The market witnessed a sharp divergence in sector-wise performance as investors reacted to new regulatory frameworks and corporate earnings.
| Sector | Trend | Key Drivers |
| Banking & Finance | 🟢 Gainer | HDFC Bank (+2.66%) and Axis Bank (+1.94%) led the charge. Improved loan growth projections and stable asset quality provided a “valuation cushion” for these heavyweights. |
| Power & Energy | 🟢 Gainer | Power Grid was the star performer, jumping 4.35%, followed by NTPC and Coal India, driven by high seasonal demand expectations. |
| Pharma | 🟢 Gainer | Natco Pharma stole the spotlight, soaring nearly 12% following CDSCO approval for its generic Semaglutide injection. |
| IT & Auto | 🔴 Laggard | Tech Mahindra, Infosys, and Wipro fell up to 1.8% as AI disruption concerns persisted. Maruti and M&M also faced pressure, dragging the Auto index down nearly 1%. |
Regulatory Impact: Brokers vs. Banks
A significant talking point was the RBI’s revised capital market exposure norms. The new rules, effective April 2026, mandate 100% secured funding for brokers and a minimum 40% haircut on equity collateral.
While JM Financial noted these rules favor banks by allowing them to participate more actively in acquisition financing, the impact on brokerage firms was immediate. BSE Ltd, Angel One, and MCX saw shares tumble between 5% to 10% as the market priced in tighter funding liquidity and higher operational costs for intermediaries.
Market Breadth & Currency
Despite the headline gains, the market breadth remained cautious. On the BSE, 2,489 stocks declined compared to 1,663 advances. Meanwhile, the Indian Rupee saw a marginal dip, closing at 90.65 against the U.S. Dollar.
