Indian Stocks Poised to Drop as Analysts Predict Post-Earnings Consolidation
Recent analyses suggest that Indian stocks are likely to experience a downturn as earnings season draws to a close. Market experts anticipate a period of consolidation for the benchmark indexes, particularly as tech stocks await insights from ongoing industry events.
Current Market Trends
As of February 17, 2026, the Gift Nifty futures were reported at 25,624.5 points, indicating a slight decline at market opening. This figure suggests that the benchmark Nifty 50, which closed at 25,682.75 the previous day, might begin lower today.
On February 16, both the Nifty and the Sensex recorded an approximate 0.8% increase, helping to recover from a two-day slump of 2%. This recovery was driven primarily by value purchasing in major companies like HDFC Bank and Reliance, which mitigated losses in the tech sector.
Analyst Insights
Siddhartha Khemka, the head of research at Motilal Oswal Financial Services, stated, “With the results season ending on a strong note, we expect markets to remain sideways with a marginal positive bias.” He emphasized the ongoing developments in the tech sector as crucial for guiding market direction.
Earnings Overview
- Nifty 50 companies reported a year-on-year profit growth of 7.5% for the December quarter.
- The broader BSE 500 index experienced a 16% increase, despite facing challenges from a new labor code.
Tech stocks, particularly within the IT index, increased by 0.2% on February 16, following a significant decline of 8.2% in the previous week. This decrease marked the tech sector’s worst performance in ten months due to concerns about AI’s potential impact on software company revenues.
Market Dynamics
Investors’ sentiments are also influenced by international factors. Wall Street was closed on February 16, and Brent crude futures remained steady after a 1.3% rise. Market participants are closely monitoring upcoming U.S.-Iran talks that could affect oil prices.
Foreign Investor Activity
Foreign portfolio investors (FPIs) continued their selling trend, offloading Indian stocks worth 9.72 billion rupees (approximately $107 million) for the second consecutive session. Conversely, domestic institutional investors purchased stocks valued at 16.67 billion rupees, as reported by NSE’s provisional data.
Key Stocks to Watch
- Cochin Shipyard (COCH.NS): Secured the top bidder position for a 50 billion rupee order from the Ministry of Defence.
- Lupin (LUPN.NS): Entered into a license and supply agreement with Spektus for the antidepressant “Deslaflex” in Canada.
- TVS Supply Chain Solutions (TVSS.NS): Collaborating with Italy-based ALA Group on opportunities in India’s aerospace and defense sectors.
- Embassy Developments (EMBS.NS): Received RERA approval for a project in Alibaug, valued at 4 billion rupees.
As the Indian stock market enters this consolidation phase, investors are urged to remain informed and vigilant regarding both domestic and international influences shaping the market landscape.
