Indian equity markets on Monday (February 16) staged a noticeable rebound from recent weakness, with both of the main benchmark indices closing sharply higher after a day of early volatility. The NSE Nifty 50 finished at 25,682.75, recovering strongly from its opening weakness and registering a gain of 211.65 points on the day, while the BSE Sensex closed at 83,277.15, up 650.39 points at the close. The late recovery allowed the market to snap the immediate losing streak that had built up over the prior sessions and restore some confidence among traders and investors.
Trading began on a cautious note with both indices opening in the red as investors weighed mixed global sentiment and fresh domestic developments. The early part of the session was marked by pressure in certain capital-market-linked segments and a continuation of profit booking in technology stocks, which had been under pressure in the preceding week. Regulatory concerns surrounding tighter norms for lending into capital markets also weighed on some brokerage and exchange-linked shares, contributing to the tentative start.
As the session progressed, however, sentiment improved and buying emerged in larger, more liquid stocks that had become oversold. Particularly in banking and financials, investors stepped in to buy at lower levels, and this value buying helped lift the broader market. Financial heavyweights such as leading private and public banks attracted renewed interest, and energy stocks also participated in the upside, reflecting expectations of resilient fundamentals in those areas. Pharmaceutical and healthcare names, which had been relatively defensive in recent sessions, extended their gains and added breadth to the rally.
"The second half of the Monday session saw a clear improvement in risk appetite, indicating investors are gradually discounting near-term policy concerns and shifting focus toward earnings resilience and domestic macro strength. Overall, the market structure points to selective accumulation and improving sentiment, maintaining a constructive bias," said brokerage Enrich Money's CEO R Ponmudi.
The strength in the latter part of the session was sufficient not only to erase the early losses but also to push the indices into solid gains by the close. This recovery indicated that short-term oversold conditions were being bought into, and that key support levels successfully contained the downside pressure. Market breadth improved noticeably by the end of the day, with a larger number of stocks ending in positive territory than in the red, signalling that the upside was not confined to a handful of names but was reflected more broadly across segments.
Despite the strong finish, the trading patterns throughout the day suggested that the market remains in a somewhat tentative phase. The rebound was seen, largely, as technical relief buying and a bounce from oversold conditions rather than a decisive shift in trend. Caution remains evident among participants, who are still digesting a range of influences from global cues to domestic regulatory shifts and sector-specific pressures, especially within the technology space where selling had been prominent.
From a broader perspective, Monday’s session marked an important test for the recent consolidation range. The ability of the indices to defend notable support and close significantly higher provides some reassurance to market participants that the recent correction may have found a floor. However, sustained follow-through in the coming sessions will be necessary to translate this relief move into a more durable recovery. Investors are expected to remain selective in their positioning, watching closely for fresh catalysts from corporate earnings, policy announcements or external market developments that could influence trends in the short to medium term.
Overall, the market rebound on February 16 reflected a combination of opportunistic buying at perceived low levels and a cautious resurgence of confidence among traders, underscored by the solid closing figures of 25,682.75 for the Nifty 50 and 83,277.15 for the Sensex. , provided broader conditions remain supportive.