Mumbai, February 13, 2026: Indian equity markets witnessed a massive sell-off on Friday morning, with the benchmark BSE Sensex plunging over 800 points. The decline was fueled by a “tech rout” as investors panicked over Artificial Intelligence (AI) disruptions threatening the traditional Indian IT service model.
Market at a Glance (10:00 AM)
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BSE Sensex: 82,840 (▼ 835 pts / 1.0%)
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NSE Nifty 50: 25,550 (▼ 257 pts / 1.0%)
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Nifty IT Index: 10-month low (▼ 5.5%)
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Rupee vs Dollar: 90.61 (▼ 10 paise)
IT Sector Turmoil: The AI ‘Disruption’ Factor
The primary catalyst for Friday’s “Red Friday” was the Nifty IT index, which hit a 10-month low. Major heavyweights including TCS, Infosys, and HCL Tech saw their share prices erode by 5–6% in the opening hour.
Analysts point toward a global shift in sentiment. “The market is recalibrating the valuation of labor-intensive outsourcing models,” says a lead analyst at PingTV. “With AI automating code generation and BPO workflows faster than expected, there are renewed fears that the traditional ‘per-hour’ billing model is under structural threat.”
This sentiment was mirrored overnight in the U.S., where the Nasdaq faced a sharp correction, and ADRs (American Depositary Receipts) of Indian tech giants fell significantly.
Midcaps and Smallcaps Under Pressure
The carnage wasn’t limited to blue-chip stocks. The broader market felt the heat, with the Nifty Midcap and Smallcap indices dropping between 1.7% and 2.0%.
Key Losers:
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IT: Tech Mahindra, Wipro, Coforge (all down 5%+)
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Metals: Nifty Metal index fell 3% tracking global commodity weakness.
Banking and Insurance: The Lone Rangers
Despite the broader “bleed,” the financial sector showed remarkable resilience. Defensive buying in banking and life insurance provided a slight cushion to the falling Sensex.
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Top Gainers: SBI Life, Bajaj Finance, Axis Bank, and HDFC Life (all trading up 1–3%).
Global Cues and Macro Outlook
The “risk-off” mood is largely attributed to external factors:
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U.S. Fed Uncertainty: Stronger-than-expected U.S. jobs data has dampened hopes for imminent rate cuts.
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Dollar Strength: The Greenback’s rise has pressured the Indian Rupee, which slipped to the 90.60 level.
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Technical Support: Market participants are now watching the 25,500 mark for the Nifty as a crucial support level.
Investor Note: Early trade estimates suggest an investor wealth erosion of approximately ₹3–4 lakh crore. While the IT correction looks brutal, some analysts view this as a “valuation reset” that could offer long-term entry points for contrarian investors once the AI-panic stabilizes.
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