The Indian stock market staged a powerful recovery on February 16, 2026, as the benchmark indices snapped a multi-day losing streak fueled by aggressive buying in banking and power heavyweights. The BSE Sensex surged 650.39 points, or 0.79%, to finish at 83,277.15, while the broader NSE Nifty 50 advanced 211.65 points, or 0.83%, to settle at 25,682.75.
Despite a cautious start where global jitters briefly pulled the Nifty below the 25,400 mark, domestic bulls took charge in the second half of the session. The recovery was led by a “bullish engulfing” pattern on the daily charts, signaling a potential reversal of the recent downward trend. Financial giants and energy leaders provided the necessary muscle, helping the indices reclaim crucial psychological levels.
The day’s gains were largely concentrated in sectors with strong fundamental outlooks. Banking stocks saw a broad-based rally as investors reacted positively to stable asset quality and improved loan growth projections.
- HDFC Bank and Axis Bank were among the top contributors, rising over 2% each.
- Power Grid Corporation emerged as the top gainer on the Sensex, rallying nearly 4.5%.
- Reliance Industries and NTPC also notched significant gains, supporting the energy index’s 1.9% climb.
While the broader market celebrated, the Nifty Auto index was a notable laggard, declining by nearly 1%. The drag was primarily led by Maruti Suzuki, Mahindra & Mahindra, and Tata Motors. Market analysts pointed to renewed concerns over margin pressures in the electric vehicle (EV) segment and profit-booking following a recent run-up in valuations. Ola Electric Mobility also faced selling pressure after reporting a wider net loss in its recent quarterly results.
The market’s recovery came despite negative breadth on the BSE, where 2,565 stocks declined compared to 1,747 advances. The India VIX, often referred to as the “fear gauge,” remained relatively stable at 13.33, up a marginal 0.28%. This suggests that while the immediate panic from previous sessions has subsided, traders remain watchful of global cues and the upcoming Federal Reserve minutes.
Key Highlights:
- Indices Rebound: The Sensex gained 650.39 points and the Nifty climbed 211.65 points, ending their recent losing streak.
- Sector Performance: Banking and Power sectors led the rally, with Power Grid and HDFC Bank emerging as top gainers.
- Auto Sector Lag: The Nifty Auto index fell nearly 1% due to profit-booking and concerns over EV profit margins.
- Technical Outlook: The Nifty formed a bullish engulfing candle, indicating a possible upward shift in momentum if it stays above 25,600.