Stock Market Wrap-Up – 25 February 2026: Sensex Recovers, US Imposes 126% Solar Duty, Mutual Fund Flows Stay Strong
Indian Stock Market Summary
Index Movement
- Sensex witnessed strong intraday recovery of over 700 points but trimmed gains to close marginally higher.
- Nifty 50 reclaimed 25,600 during the session but ended near the 25,450 zone due to profit booking.
- Markets showed recovery after recent weakness, but late-session selling restricted further upside.
Sector Performance
- IT stocks bounced back after previous corrections.
- Midcap and Smallcap indices outperformed benchmark indices.
- Banking and heavyweights capped overall gains.
- Solar and renewable energy stocks declined sharply due to US tariff news.
Mutual Fund Updates
Industry Growth
- Mutual Fund Industry AUM stands at approximately ₹81 lakh crore (January data), supported by strong retail participation.
- Passive funds now account for nearly 19% of total AUM.
- SIP inflows remain strong near ₹31,000 crore per month, indicating continued retail confidence.
Category Trends
- Investors are shifting from sectoral/thematic funds to diversified and flexi-cap funds amid volatility.
- IT sector correction impacted portfolios of several mutual funds and institutional investors.
Industry News
- JioBlackRock Mutual Fund received SEBI approval to launch a new large-cap fund.
Key Macro & Global Developments
- US Imposes 126% Duty on Indian Solar Imports - The US Commerce Department announced preliminary countervailing duties of around 126% on solar modules imported from India.
- Indian solar companies witnessed sharp selling pressure due to export concerns.
- RBI Update - RBI Deputy Governor Poonam Gupta stated that the Indian economy has become more resilient to internal and external shocks.
- No fresh monetary policy announcement today, but commentary remains focused on inflation management and stability.
Commodities Update
Oil Prices
- Crude oil remains elevated amid geopolitical tensions, especially US-Iran developments.
- Higher crude may impact inflation and oil marketing companies if sustained.
Gold & Silver
- Gold remains supported due to global uncertainty and safe-haven demand.
- Silver trading firm in line with gold’s movement.
Geopolitical Update – US & Iran
- Markets continue monitoring US-Iran tensions.
- No major escalation today, but global risk sentiment remains cautious.
Overall Market View
- Recovery seen but conviction remains moderate.
- Global trade tensions (US tariffs) and geopolitical factors are influencing sentiment.
- Mutual fund inflows remain strong, indicating long-term retail participation.
- Commodity prices remain a key monitor for inflation outlook.
