Last Updated on February 19, 2026 11:33 pm by BIZNAMA NEWS
BIZ DESK
The Indian equity markets suffered a brutal reversal on Thursday, erasing three consecutive sessions of gains in a single afternoon. The BSE Sensex crashed 1,236.11 points, while the Nifty 50 slumped 365 points, marking their lowest closing levels since early February.
The Catalyst: Geopolitical Heat & Global Cues
The primary trigger was a sharp escalation in US-Iran tensions, which sent Brent crude prices to a year-to-date high. Investors grew wary of a potential blockade at the Strait of Hormuz, a critical choke point for global oil supplies.
Domestic factors also thinned the market’s defenses:
- Liquidity Crunch: Low FII participation due to Lunar New Year holidays and a regional banking holiday in India left the floor open for volatility.
- Currency & Policy: A weakening Rupee and ambiguity regarding the US Fed’s interest rate path added to the downward pressure.
Sector-Wise Impact: No Place to Hide
The sell-off was universal, with all sectoral indices ending in the red. Of the Nifty 50 constituents, a staggering 47 stocks closed with losses.
| Sector/Index | Performance | Key Observations |
| Realty, Media & Auto | 📉 Sharpest Cuts | High-beta sectors bore the brunt of the risk-off sentiment. |
| Aviation (IndiGo) | ⬇️ -3.28% | Top Nifty loser; surged oil prices directly threaten margins. |
| Cement & Auto (M&M) | ⬇️ ~3% | UltraTech and M&M fell sharply on input cost and demand fears. |
| Banking (Nifty Bank) | ⬇️ -1.32% | A significant drag on the Sensex despite the partial holiday. |
| Midcap/Smallcap | ⬇️ -1.59% / -1.27% | Broad market weakness saw 146 stocks hitting 52-week lows. |
Safe Haven Watch: Gold and Silver
While equities bled, bullion found support from “safe-haven” buying. However, the gains in MCX Gold (₹1.55–1.56 lakh per 10 grams) were capped by profit-booking and expectations that the US Fed might delay rate cuts. Analysts note that as long as US-Iran talks remain deadlocked, gold will likely maintain its premium.
The Silver Lining?
Despite the rout, some analysts remain cautiously optimistic. PL Asset Management suggests the market is transitioning into an “early recovery” phase. They point to two stabilizing factors:
- Valuations: Current levels of 19–20x earnings are becoming attractive for long-term buyers.
- Trade Relations: The recent India-US trade deal, which slashed tariffs from 50% to 18%, is expected to provide a fundamental cushion for Indian exporters.
