Indian equity benchmarks showed resilience on Tuesday, February 17, 2026, as domestic indices managed to edge higher despite persistent volatility in the global technology sector. The **Nifty 50** closed at **25,725.40**, gaining **0.17%**, while the **S&P BSE Sensex** rose by **174 points** to finish at **83,450.96**. This marked the second consecutive day of gains for the Indian market, adding over **₹1 lakh crore** to investor wealth in a single session. Global Tech and AI Pressure Sentiment remains fragile in international markets as investors reassess the capital-heavy transition to artificial intelligence. In recent trading, **Nvidia** saw its stock price slide by **1.6%** to **$182.81**, while **Microsoft** dipped **1.3%**. The sell-off is driven by a "wait-and-see" approach regarding AI ROI. While Big Tech capital expenditure is projected to exceed **$500 billion** globally in 2026, the immediate revenue gains have yet to match the scale of infrastructure spending. Chinese Competition and Market Shifts Uncertainty is further compounded by rapid advancements in Chinese AI infrastructure. Domestic firms in China have significantly increased their global footprint, with open-source models from the region now accounting for nearly **30%** of global AI usage. Recent technical benchmarks show Chinese models like **DeepSeek V3.2** outperforming established Western counterparts in specific metrics, fueling concerns over a shift in the global competitive landscape and potential hardware oversupply. Domestic Support and Financials The Indian market found stability through its banking and IT sectors. The **Nifty PSU Bank** index surged **2.23%**, leading the gainers as credit demand remains robust. The IT sector also staged a recovery, led by **Infosys**, which rose nearly **2%** following strategic collaborations in the enterprise AI space. Additionally, **Adani Enterprises** climbed **2.7%** after announcing a **$100 billion** commitment to building sovereign AI and renewable energy infrastructure in India. Inflation and Rate Outlook On the macroeconomic front, the Reserve Bank of India (RBI) recently held the repo rate steady at **5.25%**, maintaining a neutral stance. Latest data shows India's annualized inflation rate at **2.75%** for January 2026. While this remains comfortably within the RBI's **2–6%** tolerance band, the central bank is closely monitoring "base effects" that could cause a temporary uptick in the coming months. Markets are now pricing in a cautious wait for the next set of CPI data to determine if the interest rate cycle will shift toward easing later in the year.