Market Brief: February 18, 2026 Indian equity benchmarks extended their winning streak to a third consecutive session as domestic markets staged a late-hour recovery. Despite a cautious opening and persistent global uncertainties, a surge in buying during the final hour pushed the indices higher. The **BSE Sensex** climbed **283.29 points**, or **0.34%**, to settle at **83,734.25**. The **NSE Nifty 50** gained **93.95 points**, or **0.37%**, closing at **25,819.35**. Investor wealth saw a significant boost, with the total market capitalization of BSE-listed firms rising by approximately **₹2 lakh crore** to reach nearly **₹472 lakh crore**. Sector Performance and Key Drivers While the broader market momentum turned positive, sectoral performance remained polarized. The **Nifty IT** index faced headwinds, sliding **1.23%** as major players like **Infosys** and **Tech Mahindra** underperformed due to concerns over margin pressures. In contrast, the **Metal** and **PSU Bank** sectors led the gains, rising **1.33%** and **1.31%** respectively. Consumer-facing stocks also saw traction, with **ITC** jumping over **2.1%** following prospects of price hikes in the cigarette segment. * **Top Gainers:** Tata Steel (**+2.93%**), HDFC Life (**+3.37%**), and ITC (**+2.15%**). * **Top Laggards:** Wipro (**-1.73%**), Infosys (**-1.26%**), and Tech Mahindra (**-1.25%**). Global Technology and AI Influence Sentiment in the tech space was heavily influenced by **Nvidia’s** multi-year partnership expansion with **Meta**. Nvidia shares rose over **2%** after confirming a deal to supply millions of AI chips for Meta’s infrastructure buildout, which includes the deployment of Blackwell and Rubin GPUs. While this boosted megacap sentiment in the US, it put pressure on rival chipmakers. Meta's capital expenditure forecast for 2026 remains aggressive, projected between **$115 billion and $135 billion**. Macroeconomic Outlook and Interest Rates Investors remain laser-focused on the **US Federal Reserve**, which recently held interest rates steady in the **3.50% to 3.75%** range. Market participants are analyzing minutes and economic data for signs of a potential **25 basis point cut** later this year. On the domestic front, India's retail inflation for January 2026 was reported at **2.75%** under a newly revised series with a **2024 base year**. While food inflation stood at **2.13%**, the overall cooling trend has reinforced expectations that the **Reserve Bank of India** may maintain a stable policy environment in the medium term. Foreign and Domestic Flows Institutional activity provided a supportive floor for the indices. Foreign Institutional Investors (**FIIs**) were net buyers, purchasing equities worth **₹995.21 crore**, while Domestic Institutional Investors (**DIIs**) added **₹187.04 crore** to their holdings. Crude oil remains a factor for the trade balance, with **Brent crude** trading at approximately **$67.64 per barrel**, reflecting a slight daily increase of **0.33%**.