The Indian stock market maintained its upward momentum on Wednesday, February 18, as late-hour buying helped the key indices register gains for the third consecutive session. The rally was primarily driven by metal, PSU banking, and FMCG stocks, reflecting sector-specific optimism.
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The Nifty 50 closed 0.35% higher at 25,819 points, while the S&P BSE Sensex gained 0.34% to settle at 83,734 points.
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Broader markets also performed well, with the Nifty Midcap 100 and Nifty Smallcap 100 rising over 0.40% each.
🔹 Sectoral Performance
Metal stocks surged after US Trade Representative Jamieson Greer indicated that the Trump administration might revise broad tariffs on steel and aluminium following pressure from business groups and trade partners, as reported by Bloomberg.
PSU banking stocks continued their winning streak, with the Nifty PSU Bank index rising 1.31%, reaching an intraday record high of 9,647.
Other sectoral indices also posted strong gains:
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Nifty FMCG +0.50%
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Nifty Oil & Gas +0.50%
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Nifty Auto +0.50%
In contrast, tech stocks struggled, with the Nifty IT index falling 1.37%, erasing most of its recent gains. The index has declined 14% so far this month, reflecting concerns that advanced AI tools could disrupt industry-specific software providers.
🔹 Market Takeaways
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Sector Rotation: Investors are favoring metals, banking, and consumer staples amid global trade updates and domestic optimism.
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Tech Volatility: IT stocks remain under pressure due to AI-related disruption fears.
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Overall Outlook: Positive momentum across broader markets suggests selective optimism, though investors are cautious about technology sector headwinds.