Monday’s trading session delivered a powerful rally on the Indian stock market, pushing key indices sharply higher and restoring confidence among investors after a period of volatility. The S&P BSE Sensex jumped 480 points, settling just above 83,290 by the closing bell, while the Nifty 50 index climbed above the 25,700 mark — a healthy gain in the context of recent market swings.
Investors welcomed the rally as strong buying appeared across several major sectors, especially in banking, PSU (public sector units), automobile, and FMCG segments, while other pockets showed resilient performance despite broader global uncertainty.
Global Catalyst: U.S. Tariff Ruling Sparks Optimism
The most significant driver behind Monday’s bullish momentum stemmed from bold global developments. Late last week, a major judicial move in the United States caught the attention of markets worldwide. News broke that the U.S. Supreme Court overturned former President Donald Trump’s expansive tariff regime, which had imposed sweeping global levies on imports and stoked fear of prolonged trade tensions.
That ruling eased concerns over escalating protectionism and bolstered sentiment among global investors. Indian markets reacted quickly to this positive cue, with both the Sensex and Nifty breaking above key psychological levels in early trade and maintaining upward momentum through the session.
Sector Highlights: Banks, PSU, Auto and FMCG Lead
The gains on Feb 23 didn’t remain concentrated in only one or two stocks. Instead, buying interest spread across broad areas of the equity market:
1. Banking and Finance:
Public and private banks powered much of the upside. Major lenders such as State Bank of India and Kotak Mahindra Bank saw steady buying interest, helping the Nifty PSU Bank index climb over 1% and emerge as one of the top sector performers.
2. Automobile and Consumer Stocks:
Auto stocks also showed sustained demand, reflecting stronger domestic consumption trends. FMCG names performed well, adding to the market’s positive breadth and giving defensive sectors a boost in an otherwise risk-on session.
3. Infrastructure and Shipping:
A standout performer among individual stocks was Adani Ports & Special Economic Zone Ltd., which surged nearly 3% on strong buying interest and continued recovery from last week’s declines.
Market Breadth and Broader Indices Activity
Although headline indices ended strongly, market breadth remained somewhat mixed beneath the surface. According to market reports, midcap stocks showed slight weakness while smallcaps made modest gains, indicating that investor enthusiasm concentrated more heavily in large-caps and quality names.
The overall market capitalization of BSE-listed firms rose by approximately ₹2 lakh crore in a single session, reflecting the collective uplift in stock prices and renewed investor confidence.
Divergences: IT Sector Lags
Despite broad market strength, the IT sector lagged behind other areas. Some heavyweight IT stocks, including major names trading on both the Sensex and Nifty, finished lower or with limited gains, as investors rotated out of tech names into more cyclical and value-oriented sectors.
Technical analysts pointed out that while the Nifty IT index declined around 1.4%, this pullback eased some of the short-term overextension seen earlier in the week — a factor that may help markets sustain longer-term rallies if sectoral leadership broadens.
Key Gainers and Losers
On the winners’ list for the session were:
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Adani Ports & Special Economic Zone Ltd. – significant gains on strong volume and sector rotation.
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Kotak Mahindra Bank – solid performance among private sector lenders.
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HDFC Life Insurance – steady gains reflecting insurance demand optimism.
At the same time, some major names underperformed:
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Hindalco Industries – slipped as metal stocks lagged behind other sectors.
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Infosys, Wipro – faced selling pressure in the broader tech sell-off.
What Traders and Analysts Are Saying
Market strategists highlighted the positive impact of fresh global cues on risk appetite, combining with domestic institutional buying to send markets higher. Commentary from research desks emphasized that traders responded not just to the tariff news but also to better-than-expected sectoral performance, especially in financials and cyclicals.
Moving into the next session, experts pointed to a couple of important levels for traders to watch closely — immediate resistance near the 26,000 mark on the Nifty and support around 25,500. These levels represent key psychological and technical barriers that could define the market’s short-term trajectory.
What This Means for Investors
For investors, the rally presents both opportunity and caution:
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Opportunity: A rally driven by global structural news and broad sector participation encourages confidence in quality large-caps and cyclical stocks. Banks, PSU names, and consumer stocks may continue to attract flows if economic fundamentals remain stable.
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Caution: The lag in IT and other growth sectors reminds investors to watch divergence among sectoral indices. Rotational markets can offer gains but also require portfolio balance to manage risk.
Investors focused on long-term goals should consider how this rally fits into broader market cycles rather than reacting to single-session moves. Meanwhile, active traders may find momentum plays in sectors gaining from global cues and domestic demand recovery.
Conclusion
The Indian stock market’s strong rebound on February 23, 2026, validated a renewed sense of optimism across Dalal Street. With the Sensex surging nearly 480 points and the Nifty closing above 25,700, the session mirrored improved global sentiment, cross-sector buying enthusiasm, and renewed risk appetite among traders.
While challenges remain for lagging sectors like IT, broader gains across financials, PSU banks, and cyclical stocks underscore continued appetite for equities among domestic and global participants. If markets sustain this tone in the coming sessions, investors may see further momentum and potentially stronger index benchmarks ahead.
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