Nifty Recovers 250 Points from Day’s Low: Why PSU Banks and HDFC Bank Triggered a Mid-Day Reversal

Synopsis: The Nifty 50 (NSE: NIFTY) staged a remarkable 250-point recovery from its intraday low of 25,372 on February 16, 2026, climbing back above the 25,600 level by mid-day. The “Zero-Minute” fact is that a sharp 1.5% breakout in HDFC Bank and a sustained rally in PSU banks like SBI (up 3.4%) provided the necessary “cushion” to offset the persistent IT sector rout. Value buying in oversold tech giants and steady DII inflows of ₹5,554 Crore effectively neutralized a massive FPI exodus.

On Monday, February 16, 2026, the Indian equity market demonstrated its structural resilience as the Nifty 50 pared early losses of over 150 points to trade in the green by the afternoon session. After a gap-down opening triggered by global “AI-Disruption” fears and a weak start in Asian peers, the index hit a low of 25,372 before the “Bulls” regained control. The recovery saw the Sensex surge over 650 points from its day’s low, reclaiming the 82,900 mark.

The pivot was led by the Nifty Bank and Nifty PSU Bank indices, which acted as the primary stabilizers for the broader market. While the Nifty IT index initially dragged sentiment, a round of “value buying” in heavyweights like TCS and HCLTech—which had hit 52-week lows last week—helped the index find a temporary floor.

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Why did Nifty recover from the day’s low today?

The primary driver of the mid-day reversal was the Banking Sector Breakout. HDFC Bank (NSE: HDFCBANK) witnessed a significant technical rebound, surging 1.54% to ₹917 amid high-value institutional trading worth over ₹27,951 Crore. This move was complemented by State Bank of India (SBI), which continued its “Budget 2026” winning streak, hitting a fresh 52-week high of ₹1,187 on expectations of massive credit demand from the government’s ₹12.2 Lakh Crore capex push.

Additionally, the “1-2-1” rule of market resilience was at play: one massive FPI exit (₹7,395 Cr), two strong domestic stabilizers (DII buying and PSU dividends), and one sharp technical bounce from the 25,300 support zone. As Foreign Portfolio Investors (FPIs) offloaded shares, Domestic Institutional Investors (DIIs) absorbed the supply with a net purchase of ₹5,554 Crore, preventing a systemic breakdown.

Market Recovery: Key Sectoral Impact (Feb 16, 2026)

Index / Stock	Intraday Low	Mid-Day Level	Recovery (Points/%)
Nifty 50	25,372	25,620	+248 Points ↑
Sensex	82,534	83,180	+646 Points ↑
HDFC Bank	₹903	₹917	+1.54% ↑
SBI (PSU Bank)	₹1,142	₹1,187	+3.94% ↑

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The “Analyst Consensus” on the Nifty Reversal

Brokerages suggest that while the recovery is encouraging, the “AI-led” volatility in the IT sector remains a key monitorable.

• Geojit Investments: Dr. V.K. Vijayakumar noted that the “sell-off in IT is providing an opportunity to rotate into financials and capital goods,” where earnings visibility remains robust following the Q3 FY26 season.
• SBI Securities: Analysts highlight that the 25,300–25,350 zone has acted as immediate psychological support. However, for a sustained trend reversal, the Nifty must clear the 25,700 resistance on a closing basis.
• Institutional View: The surge in delivery volumes for HDFC Bank (up 137% over the 5-day average) suggests that long-term institutions are using the “Anthropic Shock” dip to accumulate high-quality banking proxies.

Also Read: Kwality Wall’s Listing at 26% Discount: Why the HUL Demerger Debut Stunned Retail Investors

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The Bottom Line

The 250-point recovery in Nifty confirms that the Indian market’s “Financial Engine” (Banking & PSUs) is currently strong enough to pull the “Tech Engine” (IT) out of its slump. For the Aam Aadmi investor, the focus remains on value buying at the 25,350 level, while keeping a close eye on the US CPI data release tonight.