At 13:30 IST, the barometer index, the S&P BSE Sensex advanced 354.85 points or 0.43% to 82,861.86. The Nifty 50 index jumped 91.65 points or 0.36% to 25,546.

In the broader market, the BSE 150 MidCap Index added 0.42% and the BSE 250 SmallCap Index dropped 0.16%.

The market breadth was negative. On the BSE, 1,943 shares rose and 2,054 shares fell. A total of 207 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 7.52% to 14.47.

Economy:

HSBC India Services PMI eased to 58.4 in February 2026 compared with 58.5 in January 2026, with exports rising fastest since August 2025, domestic demand easing, modestly faster hiring, and input costs hitting a 2.5-year high. Selling prices and business sentiment rose to a one-year peak.

HSBC India Manufacturing PMI climbed to 57.5 in February 2026 compared with 55.4 in January 2026, led by strong domestic demand, modest export growth, higher employment, inputs, and inventories. Input and output prices rose, while sentiment remained positive.

HSBC India Composite PMI hit 59.3 in February 2026 as against 58.4 in January 2026, the highest since last November, as factory output, new orders, and foreign sales strengthened. Hiring improved, input costs rose to a 15-month high, selling prices to a six-month peak, and sentiment reached a one-year high on investment optimism.

India AI Impact Summit 2026:

The AI Impact Summit, held from February 16'20, brings together over 500 global AI leaders, 150 academicians and researchers, and 400 chief technology officers, vice-presidents, and philanthropists.

The Pax Silica declaration was signed between India and the US. 'It is an honour to stand before all of you at this historic moment as we welcome India into Pax Silica. What struck me most was not just India's scale, although that is breathtaking'it is India's resolve, the determination to chart your own course. I keep talking about the

limitless potential between our two nations, and I truly mean it. From the trade deal to Pax Silica to defence cooperation, the potential for our two nations to work together is truly limitless. I aim to fulfill that over the next three years that I'm here,' said US Ambassador Sergio Gor.

Maharashtra CM Devendra Fadnavis spoke at the India AI Impact Summit, highlighting the state's achievements in technology. He emphasized that AI is designed to benefit farmers.

'Across the world, food systems are under strain. Climate volatility is intensifying, water tables are falling, soil health is deteriorating, supply chains are fragile, and global markets are unpredictable. For countries from the Global South, agriculture is not merely an economic sector'it is livelihood, social stability, and national security. India understands this very deeply. Under the visionary leadership of Prime Minister Narendra Modi, India has placed digital public infrastructure and responsible AI at the centre,' said Devendra Fadnavis.

Gainers & Losers:

Hindalco Industries (up 2.71%), NTPC (up 2.04%), Hindustan Unilever (up 2.02%), Larsen & Toubro (up 1.67%) and Tata Steel (up 1.56%) were the major Nifty50 gainers.

Kwality Wall's (down 1.71%), Tech Mahindra (down 1.03%), Infosys (down 0.99%), HDFC Bank (down 0.75%) and Eternal (down 0.70%) were the major Nifty50 losers.

Stocks in Spotlight:

CIE Automotive India fell 0.99%. The company has reported 10.4% rise in consolidated net profit to Rs 204.31 crore on a 13.4% increase in net sales to Rs 2,393 crore in Q4 2025 as compared with Q4 2024.

ABB India rallied 8.29% after the company's consolidated net profit jumped 5.82% to Rs 432.85 crore on 7.44% rise in revenue from operations to Rs 3557.01 crore in Q4 CY25 over Q4 CY24.

Zydus Lifesciences shed 0.32%. The company said the US Food and Drug Administration (USFDA) has completed a pre-approval inspection (PAI) at its Injectable Medical Devices facility in Ahmedabad with nil observations.

Global Markets:

European markets opened higher on Friday as traders awaited key economic data and additional earnings reports, while keeping an eye on escalating tensions between the U.S. and Iran.

In the U.K., retail sales rose 1.8% in January from December, exceeding expectations and marking the largest increase since May 2024.

Germany saw producer prices decline 3% year-on-year in January, while France's inflation slowed to 0.3% year-on-year, down from 0.8% in December.

Asian markets traded mixed, after all three major Wall Street indexes declined overnight, pressured by a drop in private credit stocks and Iran-U.S. tensions.

Prospects of a strike on Iran have risen with U.S. President Donald Trump reportedly saying that he would take a call to decide on military action against Tehran in the next 10 days. This pushed Brent Crude higher, gaining 0.26%, to settle at $71.92.

In Asia, investors assessed Japan's latest inflation data. The island nation's headline inflation rate fell from 2.1% in December to 1.5% in January, its lowest level since March 2022. The reading ended a run of 45 straight months in which inflation had remained above the Bank of Japan's 2% target.

The core inflation rate, which excludes fresh food prices, eased to 2%, the lowest level since January 2024. It was down from 2.4% in December.

As per reports, despite the slowdown in headline inflation, the Bank of Japan is unlikely to delay rate hikes as fresh-food prices remain volatile, while energy costs fell after Japan scrapped its fuel tax in December.

Japan's manufacturing activity improved in February, with the S&P Global Japan Manufacturing PMI rising to 52.8 from 51.5 in January, marking the strongest expansion since May 2022. Growth was supported by firm domestic and overseas demand, with export orders rising at the fastest pace in eight years.

While hiring growth eased from January's peak, it remained solid. Input costs increased at a slightly faster pace. Manufacturers stayed optimistic about the year-ahead outlook, backed by stronger demand, semiconductor and AI-related orders, and ongoing product launches.

Overnight on Wall Street, the US stocks closed lower on Thursday, pulling the S&P 500 close to flat for the year, as investors rotated out of financials and monitored escalating tensions between the US and Iran.

Reflecting a surge in imports and a slump in exports, the Commerce Department released a report on Thursday showing the U.S. trade deficit unexpectedly widened in the month of December. The Commerce Department said the trade deficit grew to $70.3 billion in December from a revised $53.0 billion in November.

The unexpectedly wider trade deficit partly reflected a continued surge in the value of imports, which shot up by 3.6 percent to $357.6 billion in December after spiking by 4.2 percent to $345.3 billion in November. The report also showed a continued slump in the value of exports, which tumbled by 1.7 percent to $287.3 billion in December after plunging by 3.4 percent to $292.3 billion in November.

The Dow Jones Industrial Average fell 267.50 points, or 0.54%, closing at 49,395.16. The S&P 500 declined 0.28%, ending at 6,861.89, while the Nasdaq Composite slipped 0.31% to 22,682.73.

Financial stocks led the decline after Blue Owl Capital said it would tighten investor liquidity following the sale of $1.4 billion in loan assets, raising concerns about potential losses in the private credit market. Shares of Blue Owl dropped about 6%, while Blackstone and Apollo Global Management each fell more than 5%.

Software stocks also remained under pressure amid persistent worries about artificial intelligence disruption. The sector has struggled in recent weeks as investors assess how AI could reshape enterprise software demand.

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