Mumbai, February 16 – The Sensex and Nifty benchmark indices rebounded sharply on Monday, rising by nearly 1%, driven by strong buying in power, banking, and financial stocks amid a mixed trend in overseas markets.
In addition, a stable rupee and global crude oil prices, amidst US-Iran talks, supported investor sentiment, according to traders.
The 30-share BSE Sensex jumped 650.39 points, or 0.79%, to close at 83,277.15.
The 50-share NSE Nifty advanced 211.65 points, or 0.83%, to settle at 25,682.75.
A total of 2,565 stocks declined, while 1,747 advanced, and 184 remained unchanged on the BSE.
The market capitalization of BSE-listed firms increased by ₹3,11,982.13 crore to ₹4,68,58,625.33 crore (USD 5.17 trillion).
"After a range-bound opening, domestic markets edged higher, supported by renewed buying interest in banking and power stocks. The power sector gained on expectations of sustained demand momentum, while improved loan growth and stable asset quality bolstered confidence in banks," said Vinod Nair, Head of Research, Geojit Investments Limited.
PowerGrid emerged as the top gainer in the Sensex pack, rising 4.45%, followed by HDFC Bank, Axis Bank, NTPC, ITC, Asian Paints, Bajaj Finserv, Bharti Airtel, Adani Ports, Tata Steel, Kotak Mahindra Bank, Reliance Industries, and State Bank of India.
Tech Mahindra, Maruti Suzuki India, Bajaj Finance, Trent, Mahindra & Mahindra, Titan, Infosys, ICICI Bank, and UltraTech Cement were the laggards.
"PSU bank stocks rebounded after two sessions of decline, supported by increased mutual fund allocation to the sector in January, which rose to a three-year high," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
The BSE Midcap Select Index rose 0.95%, while the Smallcap Select Index slipped 0.16%.
Among sectoral indices, Power rose the most by 2.40%, followed by Utilities by 2.15%, PSU Bank by 1.65%, Realty by 1.44%, Bankex by 1.20%, BSE Top 10 Banks by 1.16%, Energy by 1.13%, Capital Goods by 1.05%, and Private Banks Index by 1.04%.
Consumer Discretionary and Auto were the only laggards.
"Market sentiment remained fragile as the recent selling pressure in the technology space continued to weigh on overall confidence. However, notable strength in banking and select heavyweight stocks from other sectors helped absorb the pressure and triggered a rebound in the index," said Ajit Mishra, SVP, Research, Religare Broking Ltd.
The broader Asian markets ended on a mixed note. Hong Kong's Hang Seng benchmark rose 0.52%, while Japan's Nikkei 225 index slipped 0.22%. Markets in China and South Korea remained closed for the Lunar New Year holidays.
European markets are trading higher in mid-session deals. US equities ended on a mixed note on Friday.
Globally, a continued decline in the US 10-year yield following benign inflation data strengthened expectations of a Fed rate cut later this year, with investors now closely awaiting the upcoming Fed minutes for further direction, Nair said.
Meanwhile, wholesale price inflation extended upward momentum for the third straight month, at 1.81% in January, driven by an uptick in prices of food, non-food articles, and manufactured items on a month-on-month basis, government data showed on Monday.
The Wholesale Price Index (WPI)-based inflation was 2.51% in January last year, while in the previous month (December 2025), it was 0.83%.
The rupee settled flat at 90.66 (provisional) against the US dollar in a range-bound trade on Monday.
Foreign institutional investors sold equities worth ₹7,395.41 crore on Friday, while domestic institutional investors purchased stocks worth ₹5,553.96 crore, according to the exchange data.
Brent crude, the global oil benchmark, fell 0.24% to USD 67.59 per barrel.
On Friday, the 30-share BSE Sensex tumbled 1,048.16 points to close at 82,626.76, while the 50-share NSE Nifty plunged 336.10 points to settle at 25,471.10.