Broad-based selling saw sectoral indices close in the red, while technical indicators signalled weakness as Nifty slipped below key EMAs.
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Stock markets saw a sharp reversal on Thursday wiping out three sessions of gains in a single day to close at their lowest since February 3, as a flareup in tension between the US and Iran pushed up crude prices.
The Nifty 50 plunged 365 points and the BSE Sensex shed 1,236.11 points.
WEST ASIA TENSIONS
Reports of a potential US military action on Iran drove Brent crude to a year-to-date high, stoking inflationary fears around a possible bottlenecking of the Strait of Hormuz.
Vinod Nair, Head of Research at Geojit Investments, said the sell-off was further aggravated by “low FII participation because of Lunar New Year holiday across key Asian markets and a non-settlement day on account of a regional banking holiday in India,” alongside a weaker rupee and uncertainty over the US Fed’s rate-cut trajectory.SECTORAL ROUT
Of Nifty’s 50 stocks all, except three, ended in the red. IndiGo was the top loser, falling 3.28 per cent, UltraTech Cement dropped 2.97 per cent and M&M lost 2.93 per cent.
All sectoral indices ended in the red. Nifty Realty, Media, and Auto took the sharpest cuts. Nifty Bank fell 1.32 per cent.
Nifty Next 50 dropped 1.86 per cent while Nifty Midcap 100 declined 1.59 per cent to 59,227.65, and Nifty Smallcap 100 shed 1.27 per cent. Stocks at 52-week lows (146) exceeded those at 52-week highs (110).
PL Asset Management said in a note that markets appear to be “transitioning from correction to early recovery,” pointing to valuations at 19–20x earnings and the India–US trade deal, which cut tariffs on Indian goods from 50 per cent to 18 per cent, as near-term catalysts.
GOLD, SILVER WATCH
MCX gold held near ₹1.55–1.56 lakh per 10 grams, with upside capped by profit-booking and delayed rate-cut expectations. Jateen Trivedi, VP Research Analyst at LKP Securities, said US–Iran talks “failed to yield a constructive outcome, reigniting military tensions and prompting fresh safe-haven buying.”
Published on February 19, 2026
