Indian equity markets ended Tuesday’s session, February 17, on a steady note, extending the recovery seen a day earlier but with clear signs of caution beneath the surface. After opening lower and spending the early part of the session under pressure, benchmark indices recovered gradually through the day to close marginally higher, reflecting selective buying and consolidation rather than broad-based risk appetite.
The Sensex finished with modest gains (up 173 points), while the Nifty managed to hold above the psychologically important 25,700 level. The recovery from intraday lows was driven largely by buying in select banking and information technology stocks, which helped offset weakness seen in pockets of metals, FMCG and some index heavyweights. Overall market breadth remained mixed, indicating that investors were rotating within sectors instead of adding aggressive fresh exposure.
The session began on a cautious footing as traders booked profits after recent gains and reacted to mixed global cues. Asian markets were largely subdued, and the absence of strong overnight triggers kept early sentiment restrained. As the day progressed, domestic institutional buying and short-covering provided support, helping indices pare losses and move into positive territory by the close.
Information technology stocks outperformed during the session, supported by stock-specific developments and expectations of stable deal pipelines, while banking and PSU bank stocks also attracted buying interest amid hopes of sustained credit growth and relatively stable asset quality trends. Financials once again played a key role in limiting downside and anchoring the benchmarks. In contrast, metals and some defensive names lagged, reflecting concerns around global demand and valuation comfort.
From a market perspective, Tuesday’s move appeared more like a phase of consolidation following recent volatility rather than the start of a strong directional rally. The ability of the Nifty to defend key support levels reinforced near-term technical resilience, but the lack of strong volumes and uneven participation suggested that investors remain selective and headline-driven. Volatility stayed contained, pointing to a wait-and-watch approach ahead of clearer global and domestic cues.
Macro factors continued to shape sentiment in the background. Global interest rate expectations, movements in the dollar, and geopolitical developments kept investors cautious, while the rupee’s relative stability helped prevent sharper swings in equity prices. Domestically, focus remains on earnings visibility, sector-specific growth prospects and policy signals, rather than broad macro optimism alone.
The session however underscored a shift toward consolidation, with investors balancing optimism on domestic fundamentals against uncertainty from global developments. In the near term, market direction is likely to remain range-bound, driven by stock-specific triggers, earnings commentary and global risk sentiment rather than a uniform trend across sectors.