How Global Cues Are Driving Market Sentiment

No image 5paisa Capital Ltd - 2 min read

Last Updated: 18th February 2026 - 02:35 pm

The Indian markets began steadily on February 18 due to positive global indicators, U.S. equities gains, and GIFT Nifty strength. Investors are keeping an eye on foreign markets, currency rates, bond rates and institutional flows to be guided further.

The Indian equity indices started off on February 18, following the positive signals in the world. In early trading, GIFT Nifty was trading at an approximate price of 25,754.50, which is a positive sign for the Sensex and the Nifty 50.

During the previous session, Sensex went up 173.81 points, or 0.21%, to end at 83,450.96, and Nifty was up 42.65 points, or 0.17%, to close at 25,725.40. The profits were made through selective sectoral purchasing and enhancing institutional involvement.

U.S. and Asian Markets Offer Stability

Global trends overnight were also very favourable. The U.S. equities regained some of the early signs of weakness to end slightly higher, which contributed to the rise in risk sentiment. The Dow Jones Industrial finished 32.26 points at 49,533.19, with S&P and Nasdaq also recording small gains, with a recovery in technology and financial shares.

Asian stocks listed gains on lean holiday trade, following the good performance of Wall Street. Nevertheless, there are still volatility concerns in technology counters and the signals of growth at large in the world that investors are still wary of.

The broad sounding of the world equity markets implies that it is not a risk-taking approach but a stable beginning of the Indian markets.

Currency, Bond And Commodity Trends In Focus

The dollar index advanced slightly in a second straight period as traders reviewed the expectations of various rate cuts by the U.S. Federal Reserve in 2026. The strong dollar generally has an effect on the emerging market circulation and on commodity prices.

The 10-year treasury yield in the U.S. ranged around 4.05, which implied less volatility in the international bond markets. Yield stability has been regarded as favourable to equity valuations.

In the commodities, the crude oil prices spread losses with reports of advances in the U.S.-Iran nuclear talks. Prices of gold dropped with the herd of strength of the dollar, and other silver prices also went down. Blended commodity patterns can have a sector-specific impact on domestic trade.

Institutional Flows And Domestic Setup

Foreign institutional investors turned net buyers after two sessions of selling, purchasing equities worth ₹995 crore on February 17. Domestic institutional investors extended their buying streak to a fourth session, investing ₹187 crore, providing stability to the market.

With global equities stable, the dollar firm and bond yields steady, domestic benchmarks are poised for a constructive opening. However, the sustainability of gains will depend on continued institutional flows and evolving global cues through the trading session.

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