The Indian stock market turned the tables in a single session.
A day after both benchmark indices slipped over 1%, the mood shifted sharply. The Sensex jumps over 600 points, investors earn ₹3 lakh crore became the headline investors woke up to on Friday, February 20.
This wasn’t a mild rebound. It was a firm, confident recovery.
Let’s break down what really moved the market today.
Market Performance: Sensex and Nifty Reclaim Ground
The comeback was visible right from early trade.
- The 30-share Sensex jumped over 600 points in intraday trade.
- The Nifty 50 reclaimed the 25,660 mark during the session.
- BSE market capitalisation rose to ₹468 lakh crore, up from ₹465 lakh crore in the previous session.
- Investors gained ₹3 lakh crore in a single day.
When you see ₹3 lakh crore added in hours, it tells you sentiment hasn’t broken. It was waiting for a trigger.
The broader market tone improved steadily as the session progressed. Banking, metal, and FMCG stocks showed visible strength.
Main News: Why Did the Sensex Jump Over 600 Points?
The rally was not random. It followed identifiable shifts in sentiment and positioning.
Here are the key developments behind the move.
1. Short Covering in Heavyweight Stocks
After the recent correction, several large-cap stocks saw renewed buying.
Accumulation was visible in major names such as:
When markets fall sharply, traders build short positions. Once sentiment stabilizes, these positions are covered. That short covering often fuels sharp intraday spikes.
Today felt exactly like that.
Large-cap buying provided stability. Once heavyweights rise, indices move quickly.
2. Rupee Holds Below the 91 Mark
Currency stability also played a role.
The Indian rupee declined to 90.96 per dollar during the session. This happened after crude oil prices crossed $72 per barrel, a six-and-a-half-month high.
However, the rupee did not breach the key 91 per dollar level.
That psychological level held.
In markets, sometimes what doesn’t happen matters more.
The fact that the rupee stayed below 91 helped calm nerves.
3. Q3 Earnings Slightly Better Than Expected
Corporate earnings provided support beneath the surface.
The third-quarter earnings season ended better than many feared.
- Q3 revenue of NSE 200 (excluding financials and OMCs) grew 11.9% year-on-year.
- This was higher than the average run rate of 7.8% over the previous eight quarters.
When earnings growth stabilizes, markets breathe easier.
It changes the narrative from “slowdown” to “recovery in progress.”
4. Valuations Turn More Reasonable After Correction
After weeks of correction, large-cap valuations moderated.
Price-to-earnings multiples moved closer to the 19–20 times range.
That reset improved risk-reward perception.
Markets don’t always need booming news. Sometimes they just need prices to stop looking stretched.
Today’s move reflected that reset.
5. Healthy Buying in Banking, Metal and FMCG Stocks
Sector rotation was clearly visible.
Around mid-session:
- Nifty Bank was up 0.60%
- FMCG index rose 0.70%
- Nifty Metal gained 1%
Among the top gainers in the Nifty 50:
When banks, metals, and FMCG move together, the rally gets broader participation.
It stops being a narrow bounce.
It becomes a market-wide recovery.
Company & Sector Snapshot
The rally was driven by large-cap strength rather than speculative moves.
Banking sector
- Nifty Bank index up 0.60%.
- Supportive momentum during the session.
Metal stocks
- Nifty Metal index up 1%.
- Benefited amid broader buying interest.
FMCG stocks
- FMCG index up 0.70%.
- Defensive sector participation added stability.
The move was measured, not chaotic.
That often signals controlled buying rather than emotional panic buying.
What Today’s ₹3 Lakh Crore Rally Means
The headline — Sensex jumps over 600 points, investors earn ₹3 lakh crore — captures the scale.
But the deeper message lies in structure:
- Earnings support is visible.
- Valuations have moderated.
- Large-caps are seeing renewed interest.
- Key currency levels held steady.
Markets had corrected.
Prices adjusted.
And once fear cooled, money returned.
Summary: Sensex Jumps Over 600 Points, Investors Earn ₹3 Lakh Crore
To summarise today’s session:
- Sensex surged 600+ points in intraday trade.
- Nifty 50 reclaimed 25,660.
- BSE market cap rose from ₹465 lakh crore to ₹468 lakh crore.
- Investors gained approximately ₹3 lakh crore in one session.
- Strength was led by banks, metals, and FMCG sectors.
- Q3 revenue growth of 11.9% YoY in NSE 200 supported sentiment.
- Valuations moderated to around 19–20x PE.
- Rupee held below the 91 per dollar mark.
The stock market is rarely one-dimensional.
Yesterday it corrected.
Today it rebounded.
And that’s how markets work — adjusting, resetting, and responding.
The rally reminds us of one thing: corrections change prices, but sentiment can shift just as quickly.
In one trading session, ₹3 lakh crore was added back.
That’s the power of positioning, valuations, and sentiment working together.
Source: Livemint
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