By Dalal Street Investment Journal (DSIJ)
Indian markets ended flat on February 26 as the Nifty 50 recovered from intraday lows to close marginally higher, while the Sensex slipped below the neutral line. The Nifty Pharma index surged over 1%, emerging as the top sectoral gainer. Reliance Industries supported gains, whereas HDFC Bank weighed on indices. Meanwhile, SEBI revamp mutual funds categorisation rules, tightens overlap norms.
On Thursday, February 26, India’s key equity benchmarks, the Nifty 50 and the Sensex, closed flat, recovering from midday losses.
After a gap-up opening, the benchmark index Nifty 50 changed course and touched the intraday low of 25,400. Buying interest was seen at lower levels, and the index managed to recover over 90 points from low to end the session flat with marginal gains of 14 points.
At the closing bell, the Nifty 50 closed higher by 14.05 points, or 0.06%, to 25,496.55, but below the 25,500 mark. The Sensex declined by 27.46 points, or 0.03%, to 82,248.61. Indian equity benchmark index Nifty 50 gave up early gains but recovered from days low and managed to end in positive terrain, while Sensex closed in red with minor losses. Reliance Industries helped the benchmark maintain its gains, while on the downside, HDFC Bank shares weighed. The Bank Nifty ended with a gain of 0.24% at 61,187.70.
The Securities and Exchange Board of India (SEBI) has revamped mutual fund rules to reduce duplication and ensure schemes remain true-to-label.
Mutual fund categories have been expanded from 36 to 40; portfolio overlap is capped at 50% for value, contra, and thematic funds (except large-cap).
For any scheme offering in the sectoral/thematic equity category, Mutual Funds shall ensure that no more than 50% of the schemes portfolios would overlap with other equity schemes in the sectoral/thematic category and other equity schemes categories except for large-cap schemes.
Solution-oriented schemes have been discontinued, which include children’s and retirement funds.
On the sectoral front, 8 out of 11 key sectoral indices ended in positive territory. Meanwhile, broader indices such as the Nifty Midcap index outperformed headline indices with a gain of 0.66%, while the Nifty Smallcap 100 index ended flat with a marginal loss of 0.01%.
On Thursday, the Nifty Pharma index emerged as the top gainer among the sectoral indices, ending 1.08% higher, extending gains from the last five consecutive trading sessions. The index is trading just 1% below its record high.
On the other hand, the Nifty media index plunged by 0.68%. The index is trading near its 52-week low, and over the last month, it is up by over 4.16%.
Stock-Specific Highlights: Shaily Engineering, Tejas Network, and Schaeffler India
Among individual stocks,
Shaily Engineering rose 2.51% on securing a contract worth ₹423 crore.
Schaeffler India's share price jumped by 1.93%, following 4.4% gains in the previous session, on a quarterly profit jump.
Tejas Network gained 16.76% as the company won a contract to supply 5G
Massive MIMO Radios.
Sanofi India's share price lost 2.89% after reporting a year-on-year drop in profit in the December quarter.
The key drivers of the index gains were:
Reliance Industries: +12.29 points
Bharti Airtel: +10.21 points
State Bank of India: +8.54 points
On the other hand, these stocks weighed on the index:
HDFC Bank: -30.18 points
Eternal Limited: -5.63 points
Bajaj Finance: -4.73 points
As of February 26, 2026, the market breadth was in favour of advancing stocks. Out of 3,259 stocks traded on the NSE, 1,686 advanced, 1,460 declined, and 113 remained unchanged.
A total of 65 stocks touched their 52-week highs, while 190 hit their 52-week lows. Additionally, 69 stocks were locked in their upper circuits, whereas 72 stocks were locked in lower circuits.
Disclaimer: The article is for informational purposes only and not investment advice.
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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