Markets stage a smart recovery from Thursday's crash, but geopolitical tensions and FII selling keep investors on edge.
In a classic tale of two sessions, Indian benchmark indices staged a powerful comeback on Friday, February 20, 2026, recovering a significant portion of the previous session’s brutal losses. After a shaky start triggered by escalating US-Iran tensions, buying interest in heavyweight stocks helped the market close firmly in the green.
The BSE Sensex gained 316 points (0.38%) to settle at 82,814.71, while the Nifty 50 climbed 117 points (0.46%) to close at 25,571.25. This recovery brings some relief to investors who saw nearly Rs 7.5 lakh crore in wealth evaporate just a day earlier .
Market Snapshot: Power and Metal Shine
The recovery was broad-based, but sectoral performance was a mixed bag. Buying was largely led by power, metal, and capital goods stocks.
- The Gainers: Hindalco, NTPC, and L&T were the top performers on the Nifty, gaining between 2% and 3% .
- The Laggards: The Nifty IT index was the worst hit, falling nearly 1%. Infosys, Tech Mahindra, and HCL Technologies closed with losses as global concerns over AI disruption and weak deal flows continue to weigh on the sector .
| Index | Closing Point | Change | Change % |
| S&P BSE Sensex | 82,814.71 | +316.57 | +0.38% |
| Nifty 50 | 25,571.25 | +116.90 | +0.46% |
| Nifty Bank | 61,172.00 | +432.45 | +0.71% |
Data as of February 20, 2026 (Source: Moneycontrol)
Why It Matters: A "Tactical Bounce" Amid Global Risks
While the close was positive, the journey was not easy. The indices opened lower, extending Thursday's 1.5% slide, as Brent crude prices hovered near $72 a barrel following US President Donald Trump’s warning to Iran over its nuclear program . Since India is a major importer of oil, rising crude prices put pressure on the rupee and corporate margins.
"This is more of a tactical bounce from the Nifty's 200-day moving average," said Naveen Vyas of Anand Rathi Global Finance. "However, we are still not out of the woods. If crude surpasses $75, it could put further pressure on equities," he added .
FII DII Data: DIIs Continue to Offset Foreign Outflows
Institutional activity shows a clear trend of domestic strength countering foreign weakness.
- Foreign Investors (FIIs): They remained net sellers, offloading shares worth ₹880 crore on February 19.
- Domestic Investors (DIIs): Domestic institutions have been the backbone of the market this year. In February (till the 19th), DIIs have bought a massive ₹11,474 crore worth of shares, effectively absorbing the selling pressure from FIIs .
Clean Max Enviro Energy IPO to Open on February 23
Shifting focus to the primary market, renewable energy company Clean Max Enviro Energy Solutions is set to launch its ₹3,100 crore Initial Public Offering (IPO) on Monday, February 23. The issue, which closes on February 25, is a combination of a fresh issue of shares and an Offer for Sale (OFS) .
The price band is fixed at ₹1,000 to ₹1,053 per share. Notably, global sovereign wealth funds like Temasek and ADIA are planning to participate as cornerstone investors, signaling strong institutional confidence in the renewable space despite current market volatility . However, retail experts advise a long-term view, noting the valuation is on the higher side .
Looking Ahead:
Investors will now keep a close watch on the ongoing earnings season and any further developments in the Middle East. While the recovery is a positive sign, volatility is likely to remain the only constant in the near term.
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