Mumbai, Feb 16, 2026, 15:23 IST — Trading in the regular session.
Late in the session Monday, India’s stock benchmarks pushed higher, paced by gains in banking and real estate shares. The Nifty 50 climbed 0.8% to 25,662.55 by 3:00 p.m. IST, while the Sensex advanced 0.71% to 83,212.63. IT and auto stocks struggled to keep up.
Both benchmarks are rebounding, recovering ground after IT stocks dragged them lower last week and sapped risk appetite. “The IT sell-off will continue to weigh on markets in the near term,” said VK Vijayakumar, chief investment strategist at Geojit Investments. He expects investors to rotate toward sectors with clearer earnings prospects. Reuters
Regulation took center stage. Shares of BSE dropped up to 9.9%, with brokerages also sliding, after the Reserve Bank of India rolled out tougher rules for banks lending to stock brokers and other market players. The new restrictions include a ban on banks funding proprietary trades—those wagers made with a firm’s own capital. JM Financial analysts noted Angel One now faces an urgent need to reassess how it finances its margin trading facility, the product offering clients loans to buy stocks.
The RBI’s move, according to NDTV Profit, shifts the system into a more “cash-first” direction and insists that broker funding must now be entirely secured—no more leaning on personal or corporate guarantees for bank guarantees. Multi Commodity Exchange of India (MCX) shares dropped over 7% in the morning session after the announcement. Citi has pointed out the proposal means brokerages will need to hold more capital under the new draft rules. NDTV Profit
Tech listings struggled to impress, with Fractal Analytics sliding roughly 5% under its IPO price. Shares changed hands at 861.25 rupees as of 11:14 a.m. IST, giving the company a 148.11 billion rupee ($1.63 billion) valuation. “The listing was in line with expectations,” said Vipul Bhowar, senior director at Waterfield Advisors, noting that unlisted-market premiums vanished quickly as investors weigh the risks tied to AI disruption. Reuters
Pharma names caught a bid. Natco Pharma jumped 11.6%—the company secured CDSCO clearance to make and sell generic semaglutide injections in India, eyeing a March launch. Torrent Pharma rallied over 6% on a 26% profit surge for the December quarter and declared an interim dividend.
Fresh macro numbers hit the wires: India’s wholesale price inflation (WPI) climbed 1.81% year-on-year in January, its quickest pace in nearly a year, pushed higher by surging prices for vegetables and basic metals, according to government figures. Bank of Baroda chief economist Madan Sabnavis pointed out that the global uptick in metal prices has lifted manufacturing costs, but says this “will not have a bearing” on monetary policy. Reuters
The rupee mostly stuck to a narrow band, slipping a bit in early trades as attention shifted to fund flows once the buzz around the U.S.-India trade deal wore off. Foreign investors, after buying into Indian stocks this month, yanked out over $800 million on Friday—a reminder of just how choppy their positioning can be.
Financial stocks did the heavy lifting for the day’s advance, while major IT shares continued to drag. If software names keep slipping—or if derivatives trading slows further under the RBI’s tighter funding rules—the recovery could easily lose steam.
Nifty’s 25,300–25,100 support range is in focus, with traders eyeing a possible rebound toward resistance between 25,700 and 26,000. U.S. Fed minutes, set for release Feb. 18, may shape the next move.
