Indian Stock Markets Recover After Early Decline

On February 20, 2026, India's equity benchmark indices, the BSE Sensex and the NSE Nifty, experienced a recovery after an initial drop during early trading. The Sensex, which comprises 30 of the largest companies listed on the Bombay Stock Exchange, fell by 291.93 points, equivalent to 0.35%, reaching 82,206.21 in the early hours of trading. Similarly, the Nifty, a 50-share index on the National Stock Exchange, declined by 74.6 points, or 0.29%, settling at 25,379.75.

However, both indices quickly turned around, moving into positive territory. By mid-morning, the BSE Sensex was up by 161.43 points, reaching 82,659.57, while the Nifty increased by 65.55 points to 25,519.90. Investors showed increased buying activity in the banking and capital goods sectors.

Among the major gainers on the Sensex were Bharat Electronics Ltd, NTPC, Larsen & Toubro, Hindustan Unilever, Titan, Axis Bank, Tata Steel, PowerGrid, Sun Pharmaceuticals, UltraTech Cement, ICICI Bank, and Kotak Mahindra Bank. In contrast, stocks such as Tech Mahindra, Infosys, Eternal, Bharti Airtel, HCL Technologies, Mahindra & Mahindra, HDFC Bank, Asian Paints, and Trent were among the laggards.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, commented on the market's performance: "Amidst the many crises, the strength of the Indian economy and the recovery in corporate earnings as reflected in Q3 numbers, are positives for the market." He suggested that investors should remain cautious while monitoring developments in the Middle East. Vijayakumar advised that those optimistic about a potential market deal could consider taking advantage of current lower prices in quality stocks from various sectors including banking and financials, automobiles, pharmaceuticals, hospitality, capital goods, and telecommunications.

In broader Asian markets, trading was mixed. Japan's Nikkei 225 index saw a decrease of 1.25%, while Hong Kong's Hang Seng index recorded a decline of 0.67%. Conversely, South Korea's Kospi index traded up by nearly 2%. Stock markets in mainland China remained closed due to the Lunar New Year holidays. Overnight trading on February 19 saw U.S. equities settle lower, influencing global market trends.

As per exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth ₹880.49 crore on February 19, while domestic institutional investors also sold stocks worth ₹596.28 crore. In commodities, Brent Crude, the global oil benchmark, noted a slight increase of 0.33%, trading at $71.90 per barrel. The previous day, February 19, had seen significant losses, with the BSE Sensex dropping 1,236.11 points to close at 82,498.14, and the NSE Nifty falling by 365 points to end at 25,454.35.