Sensex Jumps 650 Points as Banking Bulls Charge; RBI Norms Shake Brokerage Stocks**

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Market Snapshot

The Indian equity benchmarks staged a robust recovery on Monday, February 16, 2026, snapping a multi-session slide with significant gains. The 30-share BSE Sensex surged 650.39 points, or 0.79%, to settle at 83,277.15, while the broader NSE Nifty 50 climbed 211.65 points, or 0.83%, to close at 25,682.75. The market opened on a weak note following global cues but staged a spectacular 1,000-point recovery from intraday lows as investors engaged in bargain hunting across banking, energy, and pharma sectors.

Institutional Flows: Cash Market

Institutional activity remains a focal point as the market navigates a volatile February. According to the latest provisional exchange data available for the start of the week:

• Foreign Institutional Investors (FIIs) were net sellers in the previous session, offloading equities worth ₹7,395.41 crore, marking one of the largest single-day sell-offs in recent months.
• Domestic Institutional Investors (DIIs) continued to provide a strong cushion, net purchasing shares worth ₹5,553.96 crore.
• For the month of February so far, FIIs remain marginal net sellers of approximately ₹1,374 crore, while DIIs have absorbed much of the pressure with cumulative purchases exceeding ₹9,700 crore.

Derivatives Market Activity

The derivatives segment mirrored the cash market's recovery, with the Nifty forming a "bullish engulfing" candle on the daily charts, signaling a potential reversal of the short-term downtrend.

• The Nifty Bank index significantly outperformed the benchmarks, closing 1.27% higher at 60,949.10, driven by aggressive short-covering in private banking majors.
• India VIX, the market's fear gauge, remained relatively stable at 13.29, though it had spiked earlier in the session before the late-day rally cooled nerves.
• Most active Nifty Call contracts were seen at the 25,700 and 26,000 strikes, suggesting that traders are eyeing a move toward previous highs if the current momentum sustains.

Key Drivers and Outlook

The primary driver of Monday's session was the "buy-on-dips" strategy in heavyweights that had seen deep cuts last week. However, the day was also marked by a sharp divergence in sectoral performance following new regulatory updates.

• Banking & Energy Strength: HDFC Bank rose over 2% after a 5% decline in previous sessions, while Power Grid emerged as the top Sensex gainer, rallying 4.45% on expectations of sustained demand momentum.
• RBI Norms Impact: The brokerage sector faced heavy weather after the Reserve Bank of India (RBI) revised capital market exposure norms. Shares of BSE Ltd, MCX, and Angel One plunged between 7% and 10% as the new rules, effective April 2026, are expected to tighten funding for brokers and increase capital requirements.
• New Listings: Kwality Wall’s (India) made a tepid debut on the exchanges following its demerger from HUL, listing at a significant discount to its discovered price.
• Outlook: Market participants will closely watch the RBI Monetary Policy Committee minutes due on February 20. Technical analysts suggest the Nifty faces immediate resistance at 25,750, while 25,400 remains a crucial structural support zone.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: ** FII DII Stock Market Institutional Investors Nifty Sensex