Last Updated on February 19, 2026 11:28 pm by INDIAN AWAAZ
AMN / BIZ DESK
Indian equity markets witnessed a sharp reversal on Thursday, wiping out gains of the past three sessions in a single session, as rising tensions in West Asia spooked investors and pushed crude oil prices to a fresh year-to-date high. The sell-off dragged benchmark indices to their lowest closing levels since February 3.
The BSE Sensex plunged 1,236.11 points, while the Nifty 50 slipped 365 points, reflecting broad-based panic selling across sectors amid renewed global risk aversion.
Key Trigger: US–Iran Tensions Shake Global Sentiment
Market sentiment turned fragile after reports suggested the possibility of a US military action against Iran, triggering a sharp jump in Brent crude prices. Investors feared that any escalation could disrupt oil supply routes, particularly through the strategically important Strait of Hormuz, which handles a significant portion of global crude shipments.
The sudden spike in crude revived concerns over imported inflation for India, a major oil-importing nation.
Vinod Nair, Head of Research at Geojit Investments, noted that the fall was aggravated by weak foreign participation, citing reduced activity due to the Lunar New Year holiday across Asian markets, along with a regional banking holiday in India that impacted settlement activity.
He also pointed to a weak rupee and uncertainty over the US Federal Reserve’s interest rate-cut timeline as additional pressure points.
Sector-Wise Market Performance
1. Realty Sector (Worst Hit)
Real estate stocks faced aggressive selling, as higher crude and inflation fears raised concerns about rising interest rates and funding costs. The Nifty Realty index emerged among the biggest losers of the session.
Market view: Realty remains highly sensitive to borrowing costs, and global uncertainty often triggers exits from rate-sensitive sectors.
2. Media Sector
Media stocks also suffered sharp cuts, as investors shifted away from consumption-linked and discretionary themes. The Nifty Media index ended deep in the red, reflecting risk-off sentiment.
3. Auto Sector
Auto stocks came under heavy pressure as rising crude prices raise fears of higher fuel costs and logistics expenses. The Nifty Auto index was among the steepest decliners.
Top losers included:
- M&M (down 2.93%)
4. Banking and Financials
The Nifty Bank index declined 1.32%, mirroring broader market weakness. Investors remained cautious amid global rate uncertainty and foreign fund outflows.
Trend: Banks held relatively better than other sectors but remained under pressure due to overall sentiment.
5. Cement & Infrastructure
Infrastructure-linked stocks also weakened, with UltraTech Cement falling 2.97%, reflecting selling pressure across cyclical sectors.
6. Aviation and Travel
Aviation stocks were among the worst impacted due to the direct link between fuel prices and profitability. IndiGo slipped 3.28%, emerging as the top loser on the Nifty.
Reason: Rising crude implies higher ATF (aviation turbine fuel) costs, squeezing margins.
7. Broader Market (Midcaps and Smallcaps)
The selling was not limited to large caps, as risk aversion spread across the broader market.
- Nifty Next 50 fell 1.86%
- Nifty Midcap 100 declined 1.59% to 59,227.65
- Nifty Smallcap 100 dropped 1.27%
The market breadth remained negative with 146 stocks hitting 52-week lows, compared to 110 at 52-week highs, indicating growing weakness under the surface.
Overall Market Damage: Nearly All Nifty Stocks End Red
Out of the 50 Nifty constituents, only three stocks managed to close in the green, highlighting the intensity of the sell-off.
Valuation Comfort, Trade Deal Seen as Supportive
Despite the steep fall, PL Asset Management said markets appear to be “transitioning from correction to early recovery,” citing reasonable valuations around 19–20 times earnings.
It also highlighted the India–US trade deal as a near-term positive trigger, noting that tariffs on Indian goods were reportedly reduced from 50% to 18%, improving export sentiment.
Gold and Silver: Safe-Haven Demand Returns
With equity markets under pressure, investors turned cautious and increased allocations toward safe-haven assets.
MCX Gold hovered near ₹1.55–₹1.56 lakh per 10 grams, supported by geopolitical concerns. However, upside remained capped due to profit-booking and uncertainty over delayed US rate cuts.
Jateen Trivedi, VP Research Analyst at LKP Securities, said that the failure of US–Iran talks to produce a constructive outcome reignited military fears, encouraging fresh safe-haven buying.
Market Outlook
Analysts believe that near-term movement will remain dependent on:
- West Asia geopolitical developments
- Brent crude direction
- Rupee stability
- US Fed commentary on interest rates
- FII inflows after Asian markets resume full participation
Until clarity emerges, volatility is expected to remain elevated across sectors.
https://biznama.com/markets-feb-19-76543