Indian equity markets faced a sharp downturn on February 19, 2026, as benchmark indices snapped a three-day winning streak. The BSE Sensex plunged **1,236 points** to close at **82,498.14**, while the Nifty 50 dropped **365 points** to settle at **25,413.35**. This heavy sell-off resulted in a loss of approximately **₹7.5 lakh crore** in investor wealth in a single session. The decline was fueled by aggressive profit-booking and heightened volatility, as the India VIX surged. While the IT sector saw a marginal technical rebound of **1%** following news of a major chip deal between Nvidia and Meta, broader market sentiment remained fragile. Leading laggards included Mahindra & Mahindra and IndiGo, which fell over **3%** each, alongside significant drops in the realty and auto sectors. Retail Resilience and Global Dynamics Bucking the broader bearish trend, Walmart delivered a standout performance. The retail giant reported Q4 FY2026 revenue of **$190.7 billion**, a **5.6%** year-over-year increase, driven by a **24%** surge in global e-commerce sales. Strengthening its position, Walmart announced a massive **$30 billion** share buyback program and a **5.3%** dividend hike to **$0.99** per share. The contrast between retail strength and tech jitters is stark. Despite Walmart’s gains, global technology valuations are under pressure as investors question the immediate returns on massive AI infrastructure spending. Major firms like Microsoft and Amazon have seen significant market value erosion since the start of the year, as the "Year of Truth for AI" forces a shift from experimental hype to measurable profit impact. Federal Reserve and Economic Indicators In the United States, the Federal Reserve’s latest meeting minutes revealed a divided committee. While the benchmark rate was held at **3.50%–3.75%**, officials expressed concern over persistent inflation and a "solid" pace of economic growth. Two governors dissented in favor of a rate cut, highlighting the uncertainty surrounding the Fed's trajectory for the remainder of 2026. Labor market data provided a silver lining, as initial jobless claims fell by **23,000** to **206,000** for the week ending February 14. This drop, the largest since November, suggests a stabilizing employment environment. However, for Indian markets, these positives were offset by rising geopolitical risks and Brent crude prices climbing above **$70 per barrel**, stoking domestic inflation fears. Strategic Outlook The market is currently navigating a "low-hire, low-fire" equilibrium in the U.S. and a high-volatility phase in India. Immediate support for the Nifty is watched closely at the **25,300** level. Traders are pivoting toward defensive sectors like oil and gas, as evidenced by ONGC’s **3.65%** gain, while navigating the structural shifts caused by AI disruption in the traditional IT services model.