Sensex Rises 150 Points and Nifty Holds Above 25,900 as Smallcaps Outperform
**Market Brief: Indian Equities Extend Rally**
The Indian stock market sustained its upward momentum on **Tuesday, February 10, 2026**, marking a third consecutive session of gains. Both benchmark indices opened higher, buoyed by a landmark **India-US interim trade framework** and the return of consistent foreign capital inflows.
The **SENSEX** advanced by over **200 points** in early trade to reach **84,203**, while the **NIFTY 50** climbed above the **25,900** mark. This follow-through buying comes after a strong performance on Monday, where the Sensex ended at a one-month high of **84,065.75**, up **0.58%**.
**Small-Cap and Mid-Cap Performance**
While large-cap stocks provided a steady floor, the **NIFTY Smallcap index** continued to lead the charge, outperforming the frontline gauges with an early gain of **0.55%**. This follows a massive **2.65%** surge in the previous session.
Mid-cap stocks also showed resilience, with the **BSE MidCap** index closing Monday up **2.1%**. Market sentiment has been significantly bolstered by a recovery in retail investor interest and the stabilization of private capital expenditure.
**Banking and Sectoral Drivers**
Public sector banks are currently the primary engine of the market rally. **State Bank of India (SBI)** surged over **7%** to reach record highs after reporting a **24.5%** jump in net profit, hitting **₹21,028 crore** for the December quarter.
The **NIFTY Consumer Durables** index also showed strength, rising **1.3%**. Other sectors contributing to the positive sentiment include:
* **Auto:** Led by Tata Motors and Titan.
* **Metals:** Buoyed by firm global commodity prices.
* **Healthcare:** Showing steady gains between **0.5% and 1%**.
**Macroeconomic Backdrop**
The Reserve Bank of India recently maintained the repo rate at **5.25%**, signaling a neutral stance. The central bank revised its **FY26 GDP growth forecast to 7.4%**, citing robust domestic consumption and a revival in manufacturing.
External validation from **Moody’s** further supported the bullish outlook, as the agency projected India to remain the fastest-growing **G-20 economy** in the coming fiscal year.
**Corporate Earnings Pulse**
A wave of strong Q3 results continues to drive individual stock action. **BSE Ltd** shares jumped **5%** following a nearly threefold profit surge to **₹602 crore**. Similarly, **Navin Fluorine** reported a net profit increase of **122%**, reaching **₹185 crore**.
Despite the broader rally, the **India VIX** volatility index settled near **12.19**, indicating a cooling of investor nervousness and a shift toward a "risk-on" environment.
The market remains focused on the **26,000 level** for the Nifty as the next major psychological resistance, with support firmly established at **25,640**.