Indian equity markets staged a resilient recovery on Friday, February 20, 2026, recouping losses from a sharp previous-session correction. The BSE Sensex climbed 316.57 points to settle at 82,814.71, while the NSE Nifty 50 advanced 116.90 points to close at 25,571.25. Buying was concentrated in large-cap banking and metal stocks, while the IT sector lagged behind. Optimism was driven by India's entry into Pax Silica, a move expected to secure supply chains for semiconductors and AI minerals. Domestic economic indicators remained solid, with the Manufacturing PMI rising to 57.5 and the Composite PMI hitting a multi-month high of 59.3. Despite these gains, market breadth was slightly negative with 2,511 declining stocks against 2,043 advancing ones. Wall Street witnessed a dramatic intraday reversal following a landmark 6-3 ruling by the U.S. Supreme Court. The court struck down President Trump’s global tariffs, ruling that the administration had exceeded its authority under the 1977 International Emergency Economic Powers Act. This decision sparked a relief rally, as it opened the door for companies to recoup an estimated 175 billion dollars in previously paid levies. The tech-heavy Nasdaq Composite surged 1.11% to 22,935.19, led by e-commerce and technology giants. Alphabet jumped over 4%, and Amazon moved higher as the removal of tariff uncertainty outweighed concerns regarding their massive 380 billion dollar combined AI capital expenditure plans for 2026. The S&P 500 rose 0.66% to 6,907.34, while the Dow Jones Industrial Average added 130.43 points to close at 49,525.59. The afternoon rally in the U.S. overshadowed discouraging morning data, which showed Q4 GDP growth slowing to 1.4% and inflation remaining higher than expected. While President Trump responded to the ruling by announcing a new 10% tariff on all countries using alternative trade laws, he confirmed that the specific U.S.-India trade agreement parameters remain unchanged. Oil prices rose approximately 2% during the session due to intensifying geopolitical tensions between the U.S. and Iran. Gold prices also trended higher, trading at 156,530 rupees per 10 grams on the MCX. Market volatility, as measured by the VIX, remains elevated but saw a 5% drop immediately following the court's tariff decision. Global growth projections for 2026 are currently being revised upward for both the U.S. and India, reflecting a "tenuous resilience" in the face of shifting trade policies. Investors are now pivoting focus toward upcoming corporate earnings and the long-term returns on significant AI infrastructure investments.