Novartis surge 18% after stake sale; Nifty recovers

By Admin

20 Feb, 2026

The Indian stock market staged a measured recovery in today’s trading session, with the Nifty index inching higher despite global uncertainties and recent sharp declines. A strong rally in Novartis shares following a significant stake sale added momentum to investor sentiment, even as broader markets remained under pressure.

Novartis Jumps 18% After Stake Sale

Shares of Novartis surged 18% after news of a stake sale triggered heavy buying interest. The sharp spike made it one of the standout performers of the session, drawing attention from both institutional and retail investors.

Such stake sale transactions often increase liquidity and can improve market perception, especially if they signal restructuring, strategic realignment, or improved governance. The rally in Novartis helped lift overall market mood at a time when indices were attempting to stabilize after a steep correction.

Nifty Trades Higher; Bank Nifty Outperforms

The Nifty 50 traded 30 points higher at 25,500, signaling a recovery attempt after recent volatility. Meanwhile, the Nifty Bank outperformed the benchmark, gaining over 300 points and reclaiming the 61,000 mark.

Banking stocks provided critical support to the market, cushioning the impact of weakness in midcaps and smallcaps. The recovery in financials suggests that investors are selectively accumulating fundamentally strong counters despite global uncertainties.

Recent Decline Still Fresh

The rebound comes after a dramatic expiry session that saw the Nifty wipe out all gains accumulated during the week in a single trading day. The index declined a massive 350 points, reflecting aggressive profit-booking and risk aversion.

Broader markets mirrored the weakness:

• Nifty Midcap 100 fell 1.6%
  
  

• Nifty Smallcap 100 declined 1.27%
  
  

The sell-off highlighted the fragile sentiment prevailing in the market, especially amid global macroeconomic concerns.

Global Cues: Oil Prices and US-Iran Tensions

One of the biggest overhangs remains escalating tensions between the US and Iran. The geopolitical strain has pushed crude oil prices to a six-month high, with oil trading at $72 per barrel.

Higher crude prices are particularly significant for India, a major oil importer. Rising oil costs can impact inflation, widen the trade deficit, and put pressure on corporate margins   especially in sectors such as aviation, logistics, and paint manufacturing.

Despite these concerns, US markets closed largely in the green, with all major indices declining by under 0.50%, offering limited but stable cues for Indian investors.

Stocks to Watch

Apart from Novartis, several counters are likely to remain in focus:

• Petroleum stocks, tracking crude oil movements
  
  

• Waaree Energies
  
  

• UPL
  
  

• Texmaco Rail & Engineering Ltd
  
  

Energy-related stocks may witness volatility depending on crude price trends, while company-specific developments could drive selective action in mid- and small-cap counters.

Market Outlook

While the earnings season may be over, market-moving triggers are far from absent. Geopolitical tensions, crude oil volatility, and foreign fund flows continue to shape short-term trends.

The current recovery in the Nifty suggests that investors are cautiously optimistic, but the sharp decline seen earlier in the week serves as a reminder that volatility remains elevated.

For traders, this is a market that demands discipline and close monitoring of global cues. For long-term investors, selective buying during dips   particularly in strong sectors like banking   could present strategic opportunities.

As the session unfolds, all eyes will remain on crude oil prices, global developments, and whether the Nifty can sustain levels above 25,500 to confirm a stronger rebound.