Indian equity markets ended Friday’s session, February 20, on a firm note, staging a steady recovery after a cautious start and extending modest gains for the week. Benchmark indices shook off early weakness to close higher, supported largely by buying interest in banking, PSU and cyclical stocks, even as information technology shares continued to lag.
The Sensex rose by a little over 300 points to settle near the 82,800 mark, while the Nifty 50 reclaimed and held above the 25,550 level by the close. The rebound came after a volatile opening, with markets initially trading in the red amid subdued global cues and lingering geopolitical concerns that had weighed on sentiment in the previous session. As the day progressed, domestic investors stepped in at lower levels, helping benchmarks recover most of their intraday losses and move into positive territory.
According market players, Friday’s move reflected a classic bout of value buying following Thursday’s sharp decline, rather than a broad-based risk-on rally. Banking and financial stocks led the advance, with PSU banks showing particular strength, aided by expectations of stable asset quality and steady credit growth. Energy and metal stocks also contributed to the upside, tracking firm commodity prices and renewed interest in cyclical plays. In contrast, IT stocks remained under pressure, extending their recent underperformance as concerns persisted over global demand conditions and currency volatility.
Hariprasad K, a SEBI-registered research analyst and founder, Livelong Wealth, said; "The Nifty 50 opened today sharply lower but staged a strong recovery from the key 25,350 support level, eventually closing in positive territory. The rebound highlights solid buying interest at lower levels, with the index ending the session up 0.46%."
From a technical perspective, Prasad added, 25,350 continues to act as immediate support, while 25,700 remains the near-term resistance. "
A clear and sustained move above 25,700 could open the door for further upside. However, momentum indicators remain mixed. The RSI is still below the 50 mark, and the index has not been able to hold above its 100-day EMA, suggesting that the broader trend is stable but not yet convincingly bullish," he said.
Market breadth improved as the session wore on, suggesting selective accumulation across pockets of the market. However, participation remained uneven, highlighting a clear rotation rather than indiscriminate buying. Defensive and export-oriented names, especially in technology, failed to attract meaningful support, underscoring investors’ preference for domestically oriented sectors in the current environment.
On a weekly basis, both benchmark indices managed to post marginal gains, signaling resilience despite heightened volatility. External headwinds, including geopolitical tensions and a weaker rupee, continued to cap risk appetite, particularly among foreign investors. Currency pressure during the week added to caution, even as domestic institutional flows provided some stability to equities.
Market analysists largely are of the view that the weekend session underscored the market’s ability to find support at lower levels, but it also highlighted the absence of strong conviction. The recovery was driven more by tactical buying and sector rotation than by a decisive shift in sentiment. With volatility still elevated, investors are likely to remain selective in the near term, closely tracking global developments, currency movements and sector-specific cues for direction, they say.