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Sensex Rebounds 650 Points as Banks and Power Lead; Tech Stocks Still Under Strain

Cooling U.S. inflation lifts rate‑cut hopes, leaving markets sensitive to AI capex risks.

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 16, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Trader Fred Demarco, right, works on the floor of the New York Stock Exchange, Friday, Feb. 13, 2026, in New York. (AP Photo/Richard Drew)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Feb. 16, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

Overview

  • Indian benchmarks snapped a three‑day slide, with the Sensex closing up 650 points at 83,277 and the Nifty rising 212 points to 25,683 after a late session surge.
  • Banking, power and financial shares drove the rebound, while major IT names lagged as AI‑related disruption worries persisted following a steep sector selloff last week.
  • Foreign institutional investors were heavy sellers on Friday, offloading about Rs 7,395 crore, whereas domestic institutions provided support with roughly Rs 5,554 crore in net purchases.
  • U.S. data showing softer consumer inflation increased market odds of a Federal Reserve rate cut by June, pulling Treasury yields lower and helping stabilize risk sentiment.
  • Thin holiday trading across Asia and a weak Japan GDP print of 0.1% annualized added caution, even as local breadth improved and crude hovered near $68 a barrel.