IT selloff from AI disruption fears drove initial plunge → value buying triggered rebound as investors rotated into beaten financials and power stocks.
Banking and power advanced on loan growth visibility and demand momentum → IT, auto, media declined amid persistent sector repricing.
Advances lagged declines with narrow participation → midcaps edged higher while largecaps relied on heavyweights despite weak overall breadth.
FIIs sold equities → DIIs countered with net buying, stabilizing indices as domestic flows absorbed foreign outflows.
India VIX eased post-spike → rebound from 25,300 trendline support reclaimed short-term EMAs, signaling momentum shift.
Key Indices
NIFTY 50
25,683
0.83%
SENSEX
83,273.51
0.78%
Momentum Snapshot
Index
Price
1D
1M
1Y
Sensex
83,273.51
0.78%
0.03%
9.57%
Nifty Next 50
69,497
0.97%
0.93%
16.69%
Nifty 50
25,683
0.83%
-0.05%
12.01%
Nifty Midcap 100
59,723
0.48%
-0.24%
20.28%
Nifty Smallcap 250
15,981
-0.04%
-1.40%
10.20%
Market Sentiment
MMI Score
52.23
Greed
MMI is in the greed zone. It suggests that investors are acting greedy in the market, but the action to be taken depends on the MMI trajectory.
Since last week: Sentiment moved from Greed (53.04) to Greed (52.23).
Sector Highlights
CPSE
+2.15%
Gains driven by strong performance in Power Grid Corp and Coal India amid broader market rally and positive sentiment in power and energy-related public sector enterprises.
Energy
+1.90%
Mixed signals with intraday gains from Coal India and Adani Enterprises offset by a reported late-session plunge of 18.79%, likely due to volatile global oil prices around $68 per barrel amid US-Iran geopolitical tensions.
PSE
+1.63%
Positive movement supported by sector rotation into public sector enterprises, with gains in stocks like Coal India and Adani Enterprises during the broader indices' recovery.
Auto
-0.73%
Decline led by weakness in Maruti Suzuki, reflecting selective pressure and mild global cues amid ongoing sectoral rotation away from automobiles.
Media
-0.87%
Down approximately 1% due to broad-based selling pressure in the sector, with no specific catalysts identified beyond overall market divergence.
Sector Scoreboard
Sector
1D
1W
1Y
3Y
CPSE
+2.15%
-1.51%
+22.84%
+141.92%
Energy
+1.90%
-2.04%
+14.14%
+60.43%
PSE
+1.63%
-1.65%
+19.64%
+133.82%
Auto
-0.73%
+2.60%
+26.36%
+114.64%
Media
-0.87%
+5.18%
-5.30%
-20.33%
Stock Spotlight Of The Day
Infosys Limited
Market Cap
5,53,808 Cr
Current Price
₹1,366
Stock P/E
19.2
Dividend Yield
3.15%
ROCE
37.5%
ROE
28.8%
Shareholding Changes (Impact Factors)
FIIs
QoQ
0.19%
YoY
-3.03%
Stable foreign holding
DIIs
QoQ
-0.38%
YoY
2.89%
Stable domestic holding
Promoters
QoQ
0.22%
YoY
0.09%
Slight confidence boost
Quarterly Summary (Absolute)
Sales
QoQ
Slight growth
2.22%
YoY
Mild rise
8.9%
Expenses
QoQ
Slight uptick
2.62%
YoY
Costs rising
10.1%
Operating Profit
QoQ
Slight improvement
0.94%
YoY
Mild gains
5.13%
Net Profit
QoQ
Minor dip
-9.61%
YoY
Flat trend
-2.29%
Profit & Loss (Compounded)
Sales Growth
10 Years
12%
5 Years
12%
3 Years
10%
TTM
8%
Profit Growth
10 Years
8%
5 Years
10%
3 Years
6%
TTM
4%
Stock Price CAGR
10 Years
9%
5 Years
1%
3 Years
-5%
1 Year
-26%
Return on Equity
10 Years
27%
5 Years
30%
3 Years
31%
Last Year
29%
Fundamentals Corner
While the company maintains elite capital efficiency with a 29% ROE, fundamental growth is decelerating as TTM profit growth has cooled to 4% due to quarterly expenses outpacing sales.
The 26% stock price collapse over the past year is a significant overreaction relative to the steady 8% revenue growth, creating a valuation mismatch where the current 19.2 P/E ignores the business's long-term compounding power.
News TidBits
Infosys Limited shares have fallen over 2% recently, spearheading a massive 9% weekly decline in the Nifty IT index as fears of generative AI disrupting traditional service delivery models intensify.
The company is facing significant margin pressure as it pivots its business model toward AI-cloud infrastructure and high-value partnerships, such as its recent collaboration with AMD.
Heavy foreign fund selling remains concentrated in the stock, reflecting a broader global institutional caution regarding the adaptability of large-cap Indian IT firms to automation-led revenue erosion.
Despite the current volatility, management is aggressively pursuing outcome-based pricing and 'full-stack' AI integration to protect long-term profitability and market share.
Analysts suggest that while the short-term outlook is bearish due to slower global deal wins, the current correction may provide a strategic entry point if the company proves its AI-resilience in upcoming quarters.
Stacks on Stacks: Tip Time 🤑
Prioritize 'decision hygiene' over aggressive gains; in volatile cycles, capping your losses through disciplined capital protection is more vital for long-term wealth than picking the single largest gainer.
Metals Market
Commodity
Price
Day
Monthly
YoY
Gold
USD/t.oz
5022.1
-0.43%
7.36%
73.23%
Silver
USD/t.oz
76.84
-1.44%
-18.84%
137.31%
Copper
USD/Lbs
5.784
-0.33%
-1.92%
25.96%
Steel
CNY/T
3056
0.53%
-2.8%
-4.68%
Lithium
CNY/T
143750
0.88%
-11.81%
88.52%
Iron Ore CNY
CNY/T
762.5
-0.26%
-6.56%
-7.41%
Platinum
USD/t.oz
2036.2
-1.97%
-14.28%
104.66%
HRC Steel
USD/T
960.08
-1.23%
2.36%
24.2%
Iron Ore
USD/T
99.66
-0.71%
-7.45%
-6.71%
Silicon
CNY/T
8330
0.79%
-3.87%
-22.83%
Scrap Steel
USD/T
372.5
-0.8%
-0.93%
3.62%
Titanium
CNY/KG
45.5
0%
0%
0%
Gold and silver are entering a consolidation and profit-booking phase after record rallies, with market analysts highlighting 'bubble' risks in silver and reduced liquidity due to the Lunar New Year holiday in China.
Industrial metals like copper and aluminum remain steady as investors weigh domestic infrastructure-led demand and recovered rural construction activity against mixed global manufacturing signals.
Indian metal producers, including Tata Steel and Hindustan Zinc, are seeing improved sentiment as global iron ore and copper demand remains supported by resilient industrial cycles in key Asian markets.
Strategic institutional interest is rising in the critical minerals space, evidenced by significant funding rounds for rare-earth projects that aim to secure supply chains for the global electric vehicle and energy transition sectors.
Top News Developments
Nifty IT Faces Crisis of Confidence Amid AI Fears
A sector-wide sell-off in giants like Infosys and Wipro has erased 9% of the Nifty IT index's value in just four sessions.
Investor anxiety stems from the risk of AI-led automation cannibalizing traditional labor-intensive IT service revenues.
FII selling is heavily concentrated in this sector, forcing the broader market to depend on domestic institutional buying for stability.
Firms are pivoting to outcome-based pricing and strategic hardware partnerships to defend margins against automation-led erosion.
Banking and Energy Lead Late-Market Value Rally
Banking heavyweights like HDFC Bank and ICICI Bank surged following RBI moves to ease loan-to-value ratios for small enterprise credit.
The energy sector, led by Power Grid and Coal India, saw strong buying as global commodity prices and domestic demand projections improved.
DIIs bought a massive ₹10,000 crore in equities this month, acting as a crucial buffer against global volatility and weak GIFT Nifty opens.
Brokerage upgrades for ONGC and GMR Airports reflect a growing market preference for companies with high project execution visibility.
RBI Margin Rules to Reshape Brokerage Landscape
A new 100% collateral mandate for margin funding by April 2026 will hit the capital efficiency of discount brokers and pro-traders.
This regulatory tightening is expected to reduce overall market liquidity while increasing the cost of borrowing for retail traders.
The move aims to curb systemic risk but may lead to a consolidation phase among fintech-driven brokerage platforms like Angel One.
SEBI’s proposed dynamic ETF price bands further signal a shift toward protecting retail investors from extreme volatility and tracking errors.
Defense Sector Momentum Grows via Strategic Alliances
Strategic partnerships like the BEL-Safran JV for the HAMMER weapon system cement India's role in the global aerospace supply chain.
Sustained government capital expenditure is providing high revenue visibility for major players like HAL and Mazagon Dock.
The integration of advanced logistics into defense supply chains is emerging as a new investment theme for institutional players.
The sector is transitioning from a tactical play to a structural growth story, supported by multi-year order books and indigenization targets.
FII / DII Snapshot
Yesterday
FII Net: ₹-7395.41 cr
DII Net: ₹5553.96 cr
January 2026
FII Net: ₹-41435.22 cr
DII Net: ₹69220.74 cr
Daily Flows
Date
FII Net
DII Net
13-Feb-2026
₹-7395.41 cr
₹5553.96 cr
12-Feb-2026
₹108.42 cr
₹276.85 cr
11-Feb-2026
₹943.81 cr
₹-125.36 cr
10-Feb-2026
₹69.45 cr
₹1174.21 cr
09-Feb-2026
₹2254.64 cr
₹4.15 cr
Monthly Flows
Month
FII Net
DII Net
January 2026
₹-41435.22 cr
₹69220.74 cr
December 2025
₹-34349.62 cr
₹79619.91 cr
November 2025
₹-17500.31 cr
₹77083.78 cr
October 2025
₹-2346.89 cr
₹52794.02 cr
September 2025
₹-35301.36 cr
₹65343.59 cr
August 2025
₹-46902.92 cr
₹94828.55 cr
IPO Watchlist
Upcoming IPOs
PNGS Reva Diamond Jewellery is scheduled to open its ₹380 crore IPO on February 24, with early grey market indicators showing a premium of approximately 7.77%.
Institutional confidence in the modernization of the gold loan sector is rising, highlighted by Bain Capital’s strategic ₹4,385 crore promoter-level investment in Manappuram Finance.
PNGS Reva Diamond Jewellery
380.00
Date:24 Feb - 26 Feb
List:4 Mar
Subscription: -
GMP: 7.77%
Cha-Ching Cheatsheet 💵
Always cross-reference the institutional lock-in expiry schedule before entering mid-cap positions, as large-scale share supply can overwhelm even the strongest fundamental earnings growth.
Global Markets
Country
Index
1D
1Y
3Y
🇭🇰 Hong Kong
Hang Seng
0.60%
22.52%
26.28%
🇹🇭 Thailand
SET Composite
0.53%
11.99%
-13.62%
🇫🇷 France
CAC
0.30%
1.94%
13.18%
🇩🇪 Germany
DAX
0.22%
10.43%
62.17%
🇬🇧 UK
FTSE
0.18%
19.84%
30.60%
🇯🇵 Japan
Nikkei 225
0.09%
44.43%
107.8%
🇺🇸 USA
S&P 500
0.05%
11.75%
67.13%
🇮🇳 India
GIFT NIFTY
0.04%
11.75%
42.44%
🇸🇬 Singapore
Straits Times
0.02%
27.2%
48.54%
🇰🇷 South Korea
KOSPI
0.00%
113.18%
124.53%
🇮🇩 Indonesia
Jakarta Composite
0.00%
24.17%
19.02%
🇨🇳 China
Shanghai Composite
-1.27%
22.49%
24.3%
US softer inflation data → risk appetite shifts → boosted EM equities via Fed rate cut bets, lifting Indian financials.
Stable INR amid dollar softening → currency/dollar moves → reduced import costs, supporting FMCG and consumer sectors.
Brent crude held at $68 on US-Iran tensions → commodity linkages → contained inflation pass-through, aiding power and energy rotation.
US economic strength tempered rate cut odds → growth expectations → prompted selective buying in Indian autos and capital goods.
Declining US 10-year yields → rate differentials → eased EM borrowing pressures, drawing flows into rate-sensitive Indian banks.
Emerging Opportunities
Banking + RBI norms favor banks over brokers + buy loan growth leaders as funding shifts consolidate sector dominance.
Power utilities + sustained demand momentum + accumulate on valuation dip since market overlooks energy relative strength.
Pharma + earnings visibility amid IT chaos + selective longs in export plays with US yield decline aiding margins.
Metals + neutral-positive setup post-rotation + contrarian entry as IT overhang masks commodity linkage upside.
PSU banks + relative strength in rotation + invest in dips since DII support counters FII sales in broader indices.
Policy & Regulations
The RBI’s new mandate for 100% collateral and stricter margin funding rules, effective April 2026, is set to significantly alter the business models of discount brokers and proprietary trading desks by increasing capital requirements.
SEBI is moving to implement dynamic price bands and T-1 base pricing for ETFs, a structural shift aimed at reducing price volatility and minimizing tracking errors for retail participants in passive funds.
A major regulatory hurdle for the long-awaited NSE IPO has been cleared following the Delhi High Court's dismissal of legal challenges, potentially facilitating one of India's most significant market listings.
Specialized pharma firms like Natco Pharma are gaining from CDSCO approvals for high-value generics like semaglutide, signaling a regulatory environment increasingly focused on supporting high-complexity medical solutions.
The upcoming update to India’s inflation basket methodology is expected to offer a more accurate reflection of modern consumer spending, likely leading to more stable core inflation readings and influencing future monetary policy.
Crypto Buzz
Name
Price
Market Cap
24h Change
ATH Change
Bitcoin (BTC)
$68380
$1.37T
-2.79%
-45.76%
Ethereum (ETH)
$1959.92
$236.42B
-4.92%
-60.37%
Tether (USDT)
$0.999565
$183.71B
-0.01%
-24.45%
XRP (XRP)
$1.47
$89.80B
-7.17%
-59.57%
BNB (BNB)
$613.93
$83.69B
-2.59%
-55.19%
Bitcoin and Ethereum have seen a retreat of 2% to 4%, with Bitcoin trading near $68,344, as the total cryptocurrency market capitalization fell to $2.43 trillion amid a broader global correction.
The 'crypto bubble' narrative continues to weigh on sentiment, although institutional interest in using blockchain for cross-border logistics and security infrastructure remains a burgeoning theme.
Price action in digital assets remains decoupled from domestic equity strength, as global macro cues and US inflation data continue to dictate the liquidity flows into the crypto ecosystem.
