Indian Markets Slide in February 2026 as Nifty 50 Tests Key Support; Mobikwik Shares Surge 13%

The Indian equity markets witnessed a significant downturn on Tuesday, February 24, 2026, as the Nifty 50 slid to test crucial support levels, shedding over 200 points to trade around 25,482 at one point, while the BSE Sensex plunged by more than 750 points to 82,579.83. This market correction, driven by a confluence of weak global cues and sector-specific selling, comes amidst a striking counter-trend surge in Mobikwik shares, which jumped by 13% to touch a high of ₹227.37 apiece on the NSE. The fintech firm's unexpected rally was spurred by a key regulatory approval that greenlights its stockbroking business.

The Catalyst

The current market slide can be attributed to several factors creating an atmosphere of caution among investors. Global markets presented a fractured picture, with Wall Street experiencing a notable downturn on Monday, primarily due to persistent anxieties surrounding the disruptive potential of Artificial Intelligence (AI) and the ramifications of recent US Supreme Court rulings. This global weakness translated into cautious sentiment on Dalal Street. Specifically, fresh tariff threats from former US President Donald Trump further fueled uncertainty, impacting global trade and risk appetite.

Adding to the woes, intense selling pressure was observed in the IT sector, with the Nifty IT Index falling by 2.7%. Major IT companies like Infosys, Tata Consultancy Services (TCS), and HCL Technologies saw declines, driven by concerns that new AI tools could disrupt legacy systems and business models.

In contrast, Mobikwik's exceptional 13% surge was triggered by a significant regulatory development. The company announced that its wholly-owned subsidiary, Mobikwik Securities Broking Private Limited (MSBPL), received approval from the BSE to commence its stockbroking business, effective February 24, 2026. This follows the SEBI's stockbroking registration granted in July 2025. This strategic expansion into stockbroking is seen as a pivotal step in MobiKwik's evolution into a scaled financial services platform. The company also reported a consolidated profit of ₹4 crore for Q3 FY26 (December quarter 2025), a significant turnaround from a loss of ₹55 crore in the previous year, with revenue from operations growing by approximately 7% to ₹289 crore. Payments Gross Merchandise Value (GMV) hit an all-time high of ₹48,100 crore.

Financial Forensics

The Nifty 50 dipped as much as 0.9% to 25,482, while the Sensex fell by over 800 points to 82,481. The market breadth was significantly tilted in favour of sellers, with approximately 1,839 stocks declining and 955 shares advancing on the BSE. Technical analysts indicate that Nifty 50 has immediate support in the 25,500–25,450 range, with a decisive break below potentially leading to 25,300–25,200 levels. On the upside, 25,650–25,750 acts as a near-term resistance zone.

Foreign Institutional Investors (FIIs) have shown mixed trends. On February 23, 2026, FIIs turned net buyers, injecting ₹3,843 crore into the Indian equity market after two sessions of net selling. Conversely, Domestic Institutional Investors (DIIs) continued their selling trend, offloading equities worth ₹1,292 crore during the same period. However, overall FIIs have been buyers in ten out of the last seventeen trading sessions, indicating a renewed interest in India fueled by improving corporate earnings.

Mobikwik's financial performance in Q3 FY26 showcased a robust turnaround. The company reported a net profit of ₹4 crore compared to a loss of ₹55.3 crore in the year-ago period. Total income for the quarter rose 8% year-on-year to ₹297.2 crore. The Payments business achieved an all-time high GMV of ₹48,100 crore, a 63% year-on-year increase. The Financial Services segment, particularly ZIP EMI, saw its GMV grow 126% year-on-year to ₹9,000 million.

Key Market Performance Metrics (February 24, 2026, IST)

Index/Stock	Previous Close (₹)	Current Level (₹)	Change (Points)	% Change
Nifty 50	25,713.00	25,482.00	-231.00	-0.90%
BSE Sensex	83,294.66	82,481.00	-813.66	-0.98%
Mobikwik (NSE)	~201.20 (approx)	227.37	+26.17	+13.00%
Nifty IT Index	31,700 (approx)	30,849.05	-850.95	-2.70%
Note: Mobikwik's previous close is estimated based on its Monday close being lower and today's jump. Exact previous close was not available for Feb 24 for Mobikwik in search results, only the jump.

Market Impact

The broader market witnessed a significant erosion of investor wealth, with the overall BSE market capitalisation dropping by approximately ₹2.94 lakh crore. The underperformance was widespread, with twelve out of 15 sectoral gauges compiled by the NSE trading lower. While the IT sector bore the brunt of the selling, some resilience was noted in Metal and PSU banks, with the Nifty Metal Index being a top sectoral gainer, up 0.5%. The volatility is likely to remain elevated, and the market is expected to trade in a range amid global uncertainties and evolving tariff policies.

Key Takeaways

• Market Correction: Indian benchmarks Nifty 50 and Sensex are undergoing a correction, driven by global macroeconomic concerns and specific sector weaknesses.
• IT Sector Weakness: The IT sector is facing significant pressure due to fears surrounding AI disruption and global economic slowdown.
• Mobikwik's Outperformance: One Mobikwik Systems has bucked the trend, surging due to its subsidiary receiving approval for a stockbroking business and strong Q3 FY26 financial results.
• Critical Support Levels: Investors should closely monitor the Nifty 50's critical support zone around 25,450-25,500.
• FII Inflows: While DIIs are selling, a renewed interest from FIIs in recent sessions, driven by improving corporate earnings, could provide some stability.
• Sectoral Divergence: Look for opportunities in resilient sectors like metals, capital goods, and financials, which FIIs have favored.

FinScann Verdict

The current market environment demands a nuanced approach from investors. While the broad market correction presents near-term risks, the underlying strength in corporate earnings and a shift in FII sentiment towards India suggest a resilient long-term outlook. Investors should exercise caution, maintain a diversified portfolio, and consider accumulating quality stocks during dips, particularly in sectors showing strong fundamentals and growth potential. Mobikwik's strategic expansion and profitability signal a robust growth trajectory, making it a compelling case study of company-specific catalysts overriding broader market sentiment.

Q: Why are Indian markets falling today, February 24, 2026? A: Indian markets are falling today due to weak global cues, including downturns on Wall Street driven by AI concerns and US Supreme Court ruling fallout, along with fresh tariff threats from former US President Donald Trump. Additionally, the IT sector is experiencing significant selling pressure due to fears of AI disruption.

Q: What are the key support levels for Nifty 50? A: The Nifty 50 has immediate support in the 25,500–25,450 range. A break below this level could potentially lead to further declines towards 25,300–25,200.

Q: What caused Mobikwik shares to jump 13%? A: Mobikwik's shares jumped 13% after its wholly-owned subsidiary, Mobikwik Securities Broking Private Limited (MSBPL), received approval from the BSE to commence its stockbroking business. This regulatory approval marks a significant expansion into financial services for the company. The company also reported a consolidated profit of ₹4 crore in Q3 FY26.

Q: Should investors be concerned about a deeper market correction? A: While volatility is expected to remain high, many analysts are cautiously optimistic about the Indian market's broader outlook for 2026, anticipating earnings recovery and potential policy shifts. However, continuous monitoring of global developments and domestic cues is advised. Historically, markets tend to recover after significant corrections.

Q: Which sectors are most affected by the current market downturn? A: The IT sector is the most affected, experiencing substantial selling pressure, with the Nifty IT Index dropping by 2.7%. In contrast, the Metal sector has shown some resilience, with the Nifty Metal Index being a top gainer.

Disclaimer: For information only; not investment advice. Stock market investments carry risks. Please consult a SEBI-registered advisor before investing. FinScann assumes no liability for decisions made based on this report.