Indian equity markets navigated a turbulent opening on Monday, February 16, 2026, as benchmark indices initialed the week on a weak note before staging a resilient mid-day recovery. The 30-share BSE Sensex originally slid 350 points, dipping to an early low of 82,276.95, while the broader NSE Nifty 50 dropped nearly 100 points to touch 25,372.70. This initial downward pressure was fueled by a combination of mixed global cues from a holiday-thinned Asian market and a significant domestic regulatory shift. Investors reacted sharply to new Reserve Bank of India (RBI) rules mandating 100% collateral for bank lending to stockbrokers, a move that triggered a 10% plunge in shares of brokerage giants and exchange-linked firms like BSE Ltd and Angel One. Furthermore, the IT sector continued its punishing four-day slide, with heavyweights like Infosys and Wipro declining up to 2% amid persistent anxieties over AI-led business model disruptions.
Despite the shaky start, the market narrative shifted by noon as selective buying in the energy, banking, and pharmaceutical sectors provided a much-needed cushion. The Sensex rebounded to gain over 150 points, reclaiming the 82,700 level, while the Nifty surpassed the 25,500 mark, led by strong performances from PowerGrid, HDFC Bank, and Torrent Pharma. Market analysts noted that institutional investors appear to be rotating capital away from high-valuation tech names toward value-driven sectors with clearer earnings visibility, such as financials and capital goods. While the India VIX—a measure of market volatility—ticked up by 6.6%, the underlying sentiment remained cautiously optimistic due to improving domestic fundamentals and reasonable long-term valuations. As Brent crude remains delicately balanced at $68 per barrel amid US-Iran geopolitical tensions, market participants are expected to maintain a wait-and-watch approach ahead of the upcoming RBI monetary policy minutes later this week.
