Sensex and Nifty Extend Winning Streak as Institutional Buying Returns; PSU Banks and IT Lead the Charge

Market Snapshot

The Indian stock market maintained its upward momentum on Tuesday, February 17, 2026, with the frontline indices closing in the green. The 30-share BSE Sensex climbed 173.81 points, or 0.21%, to finish at 83,450.96. Meanwhile, the NSE Nifty 50 advanced 42.65 points, or 0.17%, to settle at 25,725.40. After a cautious start tracking weak global signals, the indices staged a mid-session recovery, with the Nifty touching an intraday high of 25,764.40. The broader market outperformed the benchmarks, with the BSE Smallcap and Midcap indices gaining 0.49% and 0.26% respectively.

Institutional Flows: Cash Market

According to provisional data from the exchanges for February 17, 2026, institutional investors turned net buyers in the cash segment, providing a much-needed cushion to the market after a volatile start to the week.

• Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹995.21 crore.
• Domestic Institutional Investors (DIIs) also remained in the buy zone, with a net purchase of ₹187.04 crore.

This synchronized buying from both FIIs and DIIs marks a positive shift from the previous session where FIIs were net sellers, suggesting a stabilization in institutional sentiment.

Derivatives Market Activity

The derivatives segment reflected a consolidation bias with signs of cautious optimism as the market approached its weekly expiry.

• The Nifty Put-Call Ratio (PCR) rose significantly to 1.11 from 0.65, indicating increased put writing as traders sought protection at lower levels.
• India VIX, the market's volatility gauge, cooled down by 4.93% to settle at 12.67, suggesting a reduction in near-term fear among investors.
• FIIs showed mixed positioning in index derivatives with an addition to long futures, while the maximum Call open interest was seen at the 26,000 strike and maximum Put open interest at 25,500.

Key Drivers and Outlook

The market's resilience was primarily driven by sector-specific triggers and strong domestic news flow.

• Sectoral Performance: The Nifty PSU Bank index was the star performer, surging 2.11%, while the IT index gained 1.15% following Infosys' strategic partnership with Anthropic. FMCG and Capital Goods also saw healthy buying interest.
• Corporate News: Cochin Shipyard jumped nearly 4% after bagging a massive ₹5,000 crore contract from the Ministry of Defence. Texmaco Rail also gained over 4% on securing a ₹219 crore order from Mumbai Railway Vikas Corporation.
• Global Cues: While US markets were closed on Monday for Presidents' Day, Asian markets were mixed on Tuesday. The Nikkei 225 ended 0.47% lower, and major hubs like China and South Korea remained shut for the Lunar New Year.
• Outlook: Analysts expect the market to remain range-bound with a positive bias in the near term. Immediate resistance for the Nifty is seen at 25,800, while 25,570 acts as a crucial support level. Investors will be closely watching for signals from the US Federal Reserve minutes and upcoming domestic macroeconomic data.

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

Tags: FII DII Stock Market Institutional Investors Nifty Sensex