Equity Indices Rebound Led by PSU Banks, Metals

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

February 20, 2026 at 11:33 AM IST

Indian equity benchmarks staged a tactical recovery on Friday, bouncing back from Thursday's sharp selloff to close higher and secure modest weekly gains. The Nifty50 rose 0.46% to 25,571.25, adding 116.90 points, while the BSE Sensex climbed 0.38% to 82,814.71, up 316.57 points. For the week, the indices gained 0.4% and 0.2% respectively, with 12 of 16 major sectors logging weekly advances. State-owned banks were the standout weekly performers, surging 5.5%, while the PSU Bank index has now gained 8.9% over the past two weeks on post-earnings optimism. Trade opened flat before buying interest across sectors helped offset early weakness in IT stocks, lifting sentiment through the session.

Sectorally, Nifty PSU Bank and Nifty Metal rose over 1% each on the day, followed by FMCG, private banks, oil and gas and auto, while Nifty IT slipped nearly 1%, continuing to face headwinds from AI disruption concerns and sustained foreign selling. In the broader markets, the Nifty MidCap 100 edged up 0.48% for the day, posting a marginal weekly gain of 0.1%, while the Nifty SmallCap 100 dipped 0.11% on Friday and ended the week fractionally lower, down 0.2%. Lingering concerns over US-Iran tensions and their impact on crude prices kept a lid on broader enthusiasm, even as earnings recovery optimism and selective buying in rate-sensitive sectors underpinned the recovery.

Top Movers of the Day

Hindustan Unilever rose about 2% to trade near ₹2,640, extending gains in FMCG names amid defensive positioning.

Federal Bank advanced nearly 4% to around ₹170 after strong quarterly updates and improved asset quality commentary supported buying in private lenders.

Rail Vikas Nigam Ltd (RVNL) climbed close to 5% to ₹345 following fresh order wins, reinforcing optimism around railway infrastructure spending.

Gaudium IVF made a muted market debut, listing marginally below its issue price and trading around ₹95–₹98 during the session as IPO enthusiasm remained selective.

Tata Motors slipped about 2% to ₹880 amid profit booking in auto counters.

ONGC declined nearly 3% to ₹275 as softer crude oil prices weighed on upstream energy stocks.

Adani Ports and SEZ gained roughly 2% to ₹1,340 on renewed buying interest in logistics and infrastructure plays.

ITC Ltd edged higher by about 1.5% to ₹332, supported by sustained demand in defensive consumption stocks.

Infosys traded lower by around 2% to ₹1,330 as IT counters continued to see intermittent selling pressure.

Power Grid Corporation rose about 3% to ₹315, emerging as one of the key gainers in the utilities space.

Futures & Options
Nifty February 2026 futures closed at 25,584.70, a premium of 13.45 points over the spot Nifty, which rose 116.90 points or 0.46% to settle at 25,571.25 in the cash market. The narrow premium suggested measured optimism among traders despite the day's recovery, with participants remaining cautious heading into the weekend. India VIX climbed a further 6.70% to 14.36, its second consecutive session of sharp gains, pointing to persistently elevated near-term volatility expectations. HDFC Bank, Infosys and Reliance Industries were the most actively traded stock futures contracts in the F&O segment on the NSE.

Bonds
The Indian government bond yields rose on Friday as escalating US-Iran tensions pushed crude oil prices to a more than six-month high, dampening risk appetite and keeping traders cautious ahead of the weekly debt auction. The benchmark 6.48% 2035 bond yield ended at 6.7214%, up from 6.6780% at Wednesday's close, with the debt market having remained shut on Thursday for a local holiday. The government raised ₹330 billion through the sale of government bonds at the weekly auction.

Forex
The Indian rupee weakened on Friday, logging its sharpest weekly decline in a month amid likely portfolio outflows and lingering geopolitical tensions that kept the currency under pressure near the 91-per-dollar mark. The rupee settled at 90.9825 per dollar, down 0.3% on the day and 0.4% for the week. Persistent importer dollar demand and trimming of long rupee positions weighed on sentiment, although central bank intervention including on Friday helped prevent a decisive breach above 91.

Crypto
Crypto markets showed mixed but stabilising momentum, with bulls attempting a modest comeback. Bitcoin edged 1.97% higher to $68,140, trading in the green after several sessions of weakness as buyers absorbed persistent ETF-related selling pressure. The ability to hold near-term support levels has helped steady broader sentiment. Ethereum, however, remained under pressure, slipping below the key $2,100 trading at $1,968 support zone after multiple failed attempts to reclaim it.

US Stock Futures
US stock futures moved higher on Friday as investors positioned ahead of a packed economic calendar following the end of a three-day winning streak for the Dow and S&P 500. Dow Jones Industrial Average futures rose 0.2%, while S&P 500 futures advanced about 0.4%. Nasdaq 100 futures led gains, up 0.5%, as traders assessed incoming macro data for signals on growth momentum and the Federal Reserve’s rate outlook.

US Treasury Notes
US Treasury yields were largely stable on Friday as investors awaited key economic data, including the Federal Reserve's preferred inflation gauge, the core PCE index, and fourth-quarter GDP figures. The benchmark 10-year yield held steady at approximately 4.07%–4.08%, caught between safe-haven demand driven by ongoing US military buildups and West Asia tensions on one side, and a more hawkish tone from Fed officials that has tempered expectations of imminent rate cuts on the other.

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