Indian markets rebounded modestly on February 20, 2026, closing the week with marginal gains as selective buying in banks and metals helped offset early pressures from geopolitical tensions and elevated oil prices. Strong domestic PMI data, renewed FPI inflows, and positive AI-sector developments underpinned cautious optimism, despite lingering IT weakness and global trade uncertainties.

Indian markets suffered their steepest single-day fall in over two weeks on February 19, 2026, as escalating US-Iran tensions drove crude oil prices sharply higher, fueling inflation concerns and triggering broad-based profit booking. While major AI infrastructure announcements highlighted long-term optimism, immediate risk aversion and geopolitical uncertainty dominated sentiment, pulling benchmarks sharply lower.

Indian markets are poised for a positive start on February 19, 2026, with GIFT Nifty indicating firm opening momentum, tracking higher Asian peers and sustained domestic buying in PSU banks, metals, and IT. While trading proceeds normally, settlement halts due to a holiday may cap volumes, with early focus on fresh technical calls and sector-specific tailwinds.