Stock Market Outlook Today, 17 February: Sensex, Nifty Likely to Consolidate Higher; India AI Summit Triggers?

Indian equity markets are likely to remain range-bound with a slight positive bias on Tuesday, February 17, 2026, as investors take cues from key developments in the technology space and the conclusion of the December-quarter earnings season, according to market expert Siddhartha Khemka of Motilal Oswal Financial Services Ltd.

Stock Market Outlook Today, 17 February 2026: Nifty, Sensex Prediction Today

After snapping a two-day losing streak on Monday, the benchmarks ended higher, setting a constructive tone for the next trading session. The Nifty advanced 0.8%, supported largely by strength in banking stocks, while broader markets remained positive but relatively subdued. The Midcap index gained 0.5% and the Smallcap index edged up 0.1%.

Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services Ltd, said markets may consolidate at higher levels while maintaining a marginal upward bias.

"We expect markets to remain sideways with a marginal positive bias, taking cues from the upcoming Infosys' AI-focused investor meet and the ongoing India AI Impact Summit, which could provide direction for tech stocks," said Khemka.

"With the results season ending on a strong note, the gradual upmove may continue, leading to selective bottom-up opportunities in the market," he added further.

India AI Impact Summit 2026 To Impact Stock Market Sentiment; IT Stocks in Focus

He noted that the upcoming investor meet by Infosys and the ongoing India AI Impact Summit in Delhi are expected to influence sentiment in IT and IT services counters, which have underperformed in recent sessions.

"Updates on enterprise AI adoption, monetisation, deal pipelines and regulatory outlook will be closely tracked, offering cues on demand trends and the broader growth outlook for the tech sector."

On Monday, sectoral performance remained largely positive. Realty stocks led the rally with the Nifty Realty index climbing 1.6%. PSU Banks and Private Banks followed, gaining 1.5% and 1.2%, respectively. PSU bank stocks saw a rebound after two sessions of decline, aided by data showing mutual fund allocation to the sector rose to a three-year high in January.

However, not all sectors participated in the upmove. Nifty Media slipped 0.8% and Nifty Auto declined 0.7%. Capital market stocks continued to face pressure after the Reserve Bank of India introduced stricter norms for bank lending to brokers and market intermediaries, including tighter collateral requirements and curbs on funding proprietary trading.

Q3 Results FY26 in Focus

With the Q3 earnings season largely concluded, corporate performance has broadly met expectations. According to Khemka, Nifty earnings grew around 7% year-on-year, while the broader market posted stronger double-digit growth. Commodities-particularly Metals and Oil & Gas-led the earnings momentum, supported by BFSI, Technology and Telecom sectors.

He added that margin resilience and a balanced beat-miss ratio indicate a stabilising earnings environment, which could lend support to markets in the near term.

Sensex, Nifty Outlook for February 17

For Tuesday's session, analysts expect the Sensex and Nifty to trade in a narrow range with a positive undertone, supported by banking strength and improving earnings visibility. However, global cues and stock-specific action in IT names may dictate intraday direction.

Overall, the market undertone remains constructive, with investors likely to focus on selective opportunities rather than broad-based aggressive buying, as consolidation at higher levels continues.

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