Last Updated on February 20, 2026 9:20 pm by INDIAN AWAAZ
AMN / BIZ DESK
Domestic Indian equity benchmarks recovered from the previous session’s sharp sell-off to close higher on Friday, supported by strong buying in public sector banks and metal stocks. The rebound came even as renewed US–Iran tensions weighed on broader Asian markets.
The BSE Sensex gained 316.57 points, or 0.38%, to close at 82,814.71, while the NSE Nifty50 advanced 116.90 points, or 0.46%, to settle at 25,571.25.
Blue-chip movers
Within the Sensex pack, NTPC, Larsen & Toubro (L&T), Hindustan Unilever (HUL), Power Grid, and Tata Steel led the gains, rising up to 2.6%. On the downside, Tech Mahindra, Eternal, Infosys, HCLTech, and Bharti Airtel declined by as much as 1.7%.
In the broader market, the Nifty MidCap 100 index rose 0.48%, while the Nifty Smallcap index slipped 0.11%.
Sector-wise performance
- Nifty PSU Bank: Up over 1%
- Nifty Metal: Up over 1%
- FMCG: Positive close
- Private Banks: Modest gains
- Oil & Gas: Ended higher
- Auto: Firm
- IT: Down nearly 1%
PSU Banks Extend Winning Streak
In a week marked by heightened volatility due to geopolitical tensions in the Middle East, investor appetite for state-owned lenders remained strong. The Nifty PSU Bank index extended its rally for a third consecutive week, underscoring improving sentiment toward the segment.
The index closed higher in four of the last five trading sessions, clocking a weekly gain of 5.45% — its strongest weekly performance since October 2024, when it surged 7.87%. During the week, it touched multiple record highs, with the latest at 9,691 on February 20.
The recent momentum has pushed its year-to-date gains to 13.3%, significantly outperforming the benchmark Nifty 50, which has declined 2.14% over the same period. The PSU banking gauge has emerged as the top-performing sectoral index in early 2026.
By contrast, the Nifty Private Bank index has gained just 0.65% year-to-date, reflecting relatively muted performance compared to its public-sector peers and indicating a clear rotation of investor capital into PSU banking stocks.
Drivers of the rally
- Robust December-quarter earnings
- Acceleration in system-wide credit growth
- Margin recovery
- Improved asset quality
- Record capital expenditure push in the Union Budget
While the government’s higher borrowing plan for FY27 initially triggered selling pressure, PSU banking stocks have since staged a strong recovery, aided by expectations that higher public capex will drive credit expansion for state-owned lenders.
11 of 12 PSU Banks End Week Higher
Out of the 12 constituents of the Nifty PSU Bank index, 11 closed the week in positive territory.
- Indian Bank: Up 7.5%
- Union Bank of India: Up 7.2%
- Punjab National Bank: Up 7.1%
- Bank of Baroda: Up 6.6%
- Canara Bank: Up 6.5%
- Bank of Maharashtra, Bank of India, Indian Overseas Bank, Central Bank of India, State Bank of India, and UCO Bank: Gained between 1% and 5%
Notably, the market capitalization of State Bank of India (SBI) crossed ₹12 lakh crore for the first time during the week, making it the fourth most-valued listed company in India. The milestone caps a seven-month rally in the stock, during which it has surged 53%.
Disclaimer: Investors are advised to consult certified financial advisors before making any investment decisions.