Market Bloodbath: Nifty and Sensex Plummet as Global Tech Rout and AI Fears Ravage Portfolios

The Indian equity markets witnessed a tumultuous trading session on Friday, Friday, February 13, 2026, as a perfect storm of global contagion, sectoral disruptions, and persistent foreign outflows triggered a widespread selloff. The benchmark Nifty 50 and BSE Sensex both declined by more than 1.25%, resulting in a massive erosion of investor wealth totaling approximately ₹7.02 lakh crore.

Executive Summary

The trading day was characterized by intense selling pressure across almost all major sectors, with the BSE market capitalization dropping from ₹472 lakh crore to ₹465 lakh crore. The Nifty 50 closed the day at 25,471.10, down 336 points or 1.30%. Similarly, the BSE Sensex plummeted 1,048 points to settle at 82,626.76, a decline of 1.25%. The Bank Nifty also succumbed to the bearish sentiment, closing at 60,186.65, down 0.91%.

Perhaps the most alarming metric of the day was the India VIX, the market's fear gauge, which surged by 15.18% to 13.51. By crossing the psychologically important threshold of 13 and moving above its 200-day moving average, the VIX signaled heightened uncertainty and the potential for continued volatility in the near term.

Market Mechanics: Intraday Analysis

The Nifty 50 opened the session at 25,571.15, marginally lower than its previous close. Despite a brief attempt at a recovery in the morning session, reaching an intraday high of 25,630.35, the index was quickly overwhelmed by selling pressure in heavyweights. The index eventually touched a low of 25,444.30 before a minor recovery toward the close.

The BSE Sensex followed a similar trajectory, opening at 82,902.73 and reaching a peak of 83,079.70 before crashing to an intraday low of 82,534.55. Highlighting the severity of the rout, only two stocks within the 30-share Sensex managed to finish in the green: Bajaj Finance and State Bank of India.

Benchmark Performance Table

Top Movers Analysis

Top 5 Gainers (NSE)

1. Bajaj Finance (+3.09%): Defying the broader market trend, the NBFC giant emerged as the top gainer, supported by strong institutional interest and resilient fundamentals.
2. Eicher Motors (+1.56%): Touched a new 52-week high of ₹8,095 during the day, buoyed by the strong performance of the Royal Enfield brand.
3. SBI Life Insurance (+0.84%): Investors sought safety in insurance, viewing the sector as a defensive play during the volatility.
4. State Bank of India (+0.33%): India's largest lender provided critical support to the Bank Nifty index.
5. Cipla (+0.13%): The pharmaceutical major managed a flat-to-positive close as the defensive pharma sector outperformed the broader indices.

Top 5 Losers (NSE)

1. Hindalco Industries (-6.08%): The metal heavyweight crashed following a disappointing Q3 report that included a 45% decline in profit and a massive exceptional loss of ₹2,610 crore.
2. Hindustan Unilever (-4.34%): The FMCG major saw sharp selling after its Q3 profit after tax declined, raising concerns about rural demand and consumption recovery.
3. Eternal (-4.30%): Witnessed profit booking as risk-off sentiment dominated the mid-cap space.
4. Adani Enterprises (-3.83%): The flagship Adani stock faced pressure alongside the broader market selloff.
5. ONGC (-3.20%): Despite declaring a dividend of ₹6.25 per share, the stock fell as operational performance lagged behind market expectations and crude prices softened.

Sectoral Deep Dive

IT Sector: The AI Disruption Crisis

The Nifty IT index fell 1.44% on Friday, concluding a brutal week where the sector lost 8.2% of its value—the steepest weekly drop since April 2025. The primary catalyst was the launch of a new AI tool by Anthropic designed to automate corporate legal and compliance tasks. This intensified fears that traditional billable-hour models are becoming obsolete. Approximately $50 billion was wiped off the market cap of Indian IT stocks this month alone as investors fear revenue compression and margin dilution.

Metal Sector: Global Headwinds

The Nifty Metal index was the session's worst performer, plunging 3.31%. Beyond Hindalco's poor earnings, reports that Russia is considering returning to US Dollar settlements for energy trades weighed on the sector, potentially shifting global commodity trade dynamics. Global growth concerns also impacted industrial metal demand.

FMCG & Realty

• FMCG (-1.90%): Dragged down by HUL, the sector faced valuation pressures and concerns over uneven volume growth.
• Realty (-2.23%): Under pressure due to sustained high interest rates affecting housing affordability and rising construction costs.

Institutional Activity

Foreign Institutional Investors (FIIs) continued their aggressive selling streak, with a net outflow of ₹7,395.41 crore in the cash segment. This selling was driven by a strengthening US Dollar (DXY at 96.86) and rising US Treasury yields, which make emerging market equities less attractive.

Domestic Institutional Investors (DIIs) acted as the primary cushion, recording a net purchase of ₹5,553.96 crore. While the DII support remains robust due to consistent SIP inflows, it was insufficient to offset the massive FII exit on Friday.

Market Breadth Analysis

The market breadth was overwhelmingly negative, reflecting a systemic risk-off sentiment:

• NSE Breadth: 577 advances against 2,311 declines (Ratio of ~1:4).
• BSE Breadth: 1,324 advances against 2,876 declines.
• New Lows: 193 stocks hit their 52-week lows, including several IT heavyweights like TCS and Infosys, compared to only 83 stocks hitting 52-week highs.

Global Factors Impact

1. US Markets: Wall Street closed sharply lower on February 12, with the Nasdaq dropping 1.6%. The tech selloff on the Nasdaq acted as a direct contagion for the Indian IT sector.
2. Asian Cues: Japan's Nikkei 225 fell 1.21% and the Hang Seng dropped nearly 1.8%, mirroring the global anxiety regarding AI and global trade stability.
3. Commodities: Brent crude oil declined to $67.59, which usually benefits India but currently reflects a global slowdown. Gold rallied as a safe haven, trading near ₹1,55,780 per 10 grams.

Key News Impact Analysis

• RIL Venezuela Deal: Reliance Industries secured a US license to purchase Venezuelan oil, a bullish development for the conglomerate that could lower sourcing costs.
• Geopolitical Tension: Donald Trump's warnings regarding potential action against Iran and increased military presence in the Middle East added a geopolitical risk premium to the markets.
• Q3 Earnings: Mixed results from HUL, Hindalco, and ONGC suggests that the corporate recovery is not uniform, leading to sharp stock-specific corrections.

Technical Outlook

From a technical perspective, the Nifty 50 has formed a bearish engulfing pattern on the daily chart.

• Support Levels: Immediate support is seen at 25,400. A break below this could lead the index toward 25,300, which is a critical Fibonacci retracement level. The 200-day DMA at 25,100 remains the ultimate floor.
• Resistance Levels: The index faces immediate resistance at 25,550 and strong psychological resistance at 25,800.

Strategic Implications

Retail investors are advised to exercise caution in the near term given the surge in the India VIX.

• For Long-term Investors: Market corrections of this nature often provide opportunities to accumulate high-quality businesses at reasonable valuations. Focus on sectors with domestic tailwinds like Banking and Infrastructure.
• For Traders: High volatility necessitates smaller position sizes and strict stop-losses. The IT and Metal sectors may continue to face pressure until global cues stabilize.
• Defensive Tilts: Diversifying into Pharma and Gold may provide a hedge against further equity market drawdowns.