Indian Market Comprehensive Analysis: Thursday, Thursday, February 12, 2026

Executive Summary

The Indian equity markets experienced a tumultuous and historic trading session on Thursday, Thursday, February 12, 2026, as a brutal selloff in the Information Technology (IT) sector snapped a four-day winning streak for the benchmark indices. The Nifty 50 closed at 25,807.2, representing a decline of 146.65 points or 0.57%, while the BSE Sensex plummeted by 558.72 points or 0.66% to settle at 83,674.92.

The day's narrative was defined by what analysts have termed the "SaaSpocalypse," as fears over Artificial Intelligence (AI) disruption to traditional IT business models triggered an unprecedented ‑1.3 lakh crore wipeout in sector market capitalization. In a symbolic changing of the guard, State Bank of India (SBI) and ICICI Bank both surpassed Tata Consultancy Services (TCS) in market capitalization rankings, reflecting a significant rotation from technology to domestic financial services. Despite the headline weakness, the Nifty Bank index remained remarkably resilient, closing virtually flat with a marginal 0.01% dip.

Market Mechanics: Intraday Trajectory

The session began on a deceptive note of strength, with the Nifty 50 opening at 25,906.70. However, the optimism was short-lived as selling pressure in heavyweight IT stocks intensified throughout the day. The index tested an intraday low of 25,753.30 before a minor recovery led it to settle near the day's lows. Trading volume on the NSE reached 419.39 million shares, indicating high conviction in the selloff. The Sensex mirrored this volatility, with a range of over 500 points, as the 30-share benchmark struggled against global technology headwinds.

Sectoral Performance Deep Dive

Information Technology: The AI Disruption Fallout (-5.51%)

The Nifty IT index suffered its worst single-day decline of the year, crashing 5.51% to close at approximately 33,442. The immediate catalyst was the launch of Anthropic's "Claude Cowork," an AI agent capable of autonomous multi-step enterprise workflows. This ignited fears that revenue from traditional software testing and maintenance could deflate by up to 40%. TCS saw its market cap fall below ‑10 lakh crore for the first time since late 2020, losing its status as India's 4th most valuable company.

Banking and Financial Services (-0.01%)

In stark contrast, the banking sector acted as a stabilizing force. Despite a nationwide bank union strike, investor sentiment remained buoyed by State Bank of India's recent robust Q3 results. ICICI Bank rose 1.7%, reaching a market cap of ‑10.09 lakh crore and overtaking TCS to become India's fifth-largest firm. Bajaj Finance led the broader market gainers with a 3.11% surge, benefiting from sector rotation.

Other Major Sectors

• Realty (-1.45%): Faced headwinds from rising bond yields and profit-booking after recent peaks.
• Energy (-1.19%): Dragged down by a 2.7% retreat in Brent Crude prices to $67.52 per barrel.
• Metal (+0.04%): Eked out a marginal gain, providing a rare green spot alongside select financial counters.
• FMCG (-0.51%): Hindustan Unilever (HUL) saw its profit double to ‑6,603 crore due to demerger gains, yet the stock faced pressure amid subdued rural demand.

Top Movers Analysis

Top 5 NSE Gainers

1. Bajaj Finance Ltd (+3.11%): Investors sought refuge in high-quality NBFCs as IT valuations became uncertain.
2. Shriram Finance Ltd (+2.46%): Boosted by strong disbursement growth in the commercial vehicle segment.
3. Eicher Motors Ltd (+2.21%): Driven by robust demand for premium motorcycles in international markets.
4. ICICI Bank Ltd (+1.70%): Benefited from sustained institutional buying, overtaking TCS in valuation.
5. Trent Ltd (+1.58%): Continued retail expansion momentum in Tier-2 and Tier-3 cities.

Top 5 NSE Losers

1. Tech Mahindra Ltd (-5.98%): Led the losers' list as its traditional service portfolio is perceived as highly vulnerable to AI automation.
2. Infosys Ltd (-5.84%): Large-deal pipeline concerns weighed heavily, bringing the stock near 52-week lows.
3. TCS Ltd (-5.49%): Hit a fresh 52-week low of ‑2,752.75; fell to the 6th position in India's m-cap rankings.
4. HCL Technologies Ltd (-4.87%): Sharp decline despite digital transformation strengths as the entire sector faced a derating.
5. Wipro Ltd (-4.67%): Continued its underperformance trend amid broader industry margin compression fears.

Institutional Activity and Market Breadth

Institutional Flows (Net):

• FIIs: ‑108.42 Crore (Net Buyers)
• DIIs: ‑276.85 Crore (Net Buyers)

Foreign Institutional Investors (FIIs) turned net buyers for the first time in several sessions, though the quantum was modest. Domestic Institutional Investors (DIIs) provided more substantial support, absorbing the selling pressure from retail and HNI desks.

Market Breadth:

• NSE: 1,151 Advances | 2,008 Declines
• BSE: 1,647 Advances | 2,433 Declines

The breadth was decisively bearish, with nearly two stocks declining for every one that advanced. This suggests that while benchmark indices were held up by a few financial heavyweights, the broader market sentiment was significantly weaker.

Global Cues and Macro Indicators

Global sentiment was dampened by US markets, which closed sharply lower on February 11. The Nasdaq fell 2.03% as strong US jobs data (130,000 new positions) reduced the likelihood of a Federal Reserve rate cut in March.

In Asia, performance was mixed: South Korea's Kospi surged 3.1% to record highs, while Japan's Nikkei remained flat at 57,639.84. Commodities saw Brent Crude drop to $67.52, and the Indian Rupee depreciated slightly to 90.58 against the US Dollar.

Technical Outlook and Investment Strategy

Nifty 50 Levels:

• Immediate Support: 25,750
• Strong Support: 25,500 (200-day Moving Average)
• Resistance: 25,900 and 26,000

Bank Nifty Levels:

• Support: 60,500
• Resistance: 61,000

Technically, the Nifty 50 has entered a consolidation phase. Holding above the 25,500 mark (200-DMA) is critical to maintain the long-term bullish structure. The India VIX rose 1.56% to 11.73, indicating a slight increase in market nervousness but no immediate signs of panic.

Strategic Implications for Investors

1. Rotation to Financials: The valuation shift suggests that financials, particularly large-cap banks like SBI and ICICI, currently offer a better risk-reward profile than technology.
2. IT Sector Caution: The "SaaSpocalypse" narrative suggests that IT services may undergo a structural derating. Investors should wait for stabilization and clarity on AI integration strategies.
3. Focus on Earnings: Companies like M&M and HAL, which reported strong Q3 numbers, continue to show resilience, highlighting the importance of bottom-up stock picking in a volatile environment.
4. Silver Outlook: Despite a price drop to ‑259,747 on the MCX, tightening inventories in global exchanges like Shanghai warrant a close watch on precious metals for long-term diversification.