Market Overview and Index Performance
The BSE Sensex closed at 82,626.76, shedding 1,048.16 points or 1.25% on the day. Similarly, the Nifty 50 index ended at 25,471.10, down 336.1 points or 1.30%. The Nifty is currently trading 3.54% below its 52-week high of 26,373.20, signalling a modest pullback from recent peaks. Notably, the Nifty remains below its 50-day moving average (DMA), which itself is positioned above the 200-DMA, indicating a mixed technical setup with short-term weakness but underlying medium-term support.
Sectoral Performance: Metals Lead the Decline
All 38 sectors tracked on the NSE ended in the red, underscoring the breadth of the sell-off. The Nifty Metal index was the worst performer, plunging 3.31% as commodity prices softened amid subdued global demand prospects. Other key sectors such as banking, IT, and consumer discretionary also faced pressure, contributing to the overall market weakness.
Market Breadth and Capitalisation Segments
Market breadth was notably weak, with only 66 advances against 434 declines across the BSE 500 universe, resulting in an advance-decline ratio of 0.15x. This lopsided breadth highlights the pervasive selling pressure. Large caps were not spared, with the BSE 100 index falling 1.3%. Mid caps declined more sharply by 2.95%, while small caps were the worst hit, tumbling 5.07%. The Nifty Small Cap 100 index dropped 1.79%, dragging the broader market lower.
Top Gainers and Losers Across Market Caps
Among the top gainers on the BSE 500, Engineers India led with an impressive 11.64% rise, followed by Signature Global and Linde India, which gained 6.90% and 6.87% respectively. In the large-cap space, Bajaj Finance was the standout gainer, advancing 2.43%. Mid caps saw Linde India as the top performer, while GE Power surged nearly 20% in the small-cap segment.
Conversely, Muthoot Finance was the biggest loser in the mid-cap category, plunging 12.10%. Blue Jet Health and Cohance Life also suffered steep declines of 10.00% and 9.98% respectively. Among large caps, Adani Power fell 6.61%, while SpiceJet was the most battered small cap, plunging 16.71%.
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Institutional Activity and Global Cues
Foreign institutional investors remained cautious, with net outflows observed in the equity segment, reflecting concerns over global economic uncertainties and geopolitical tensions. Domestic institutional investors showed limited buying interest, unable to offset the selling pressure from FIIs. Globally, markets were subdued as investors digested mixed economic data from the US and Europe, alongside ongoing concerns about inflation and central bank policy trajectories.
Technical and Trend Analysis
The Nifty’s position below its 50-DMA suggests short-term bearish momentum, although the 50-DMA remaining above the 200-DMA indicates that the medium-term trend is still intact. This technical divergence suggests investors should exercise caution and monitor key support levels closely. The sharp underperformance of small caps and mid caps relative to large caps signals risk aversion among investors, who are favouring quality and liquidity amid uncertain market conditions.
Upcoming Corporate Earnings
Market participants will be closely watching the upcoming quarterly results of ABB India, scheduled for 19 Feb 2026, and Schaeffler India, due on 24 Feb 2026. These earnings releases are expected to provide further clarity on sectoral performance and corporate earnings momentum, potentially influencing market direction in the near term.
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Investor Takeaway
Today’s broad-based decline across sectors and market capitalisation segments highlights a cautious investor sentiment amid mixed global and domestic cues. The sharp underperformance of small and mid caps suggests that risk appetite has diminished, with investors preferring large-cap stocks with stronger fundamentals and liquidity. While select stocks such as Engineers India and Bajaj Finance bucked the trend with notable gains, the overall market tone remains subdued.
Investors should closely monitor technical support levels on the Nifty and Sensex, as well as upcoming corporate earnings, which could provide fresh impetus or further pressure. The cautious stance of FIIs and subdued domestic institutional activity indicate that volatility may persist in the near term. A focus on quality stocks with robust earnings visibility and reasonable valuations is advisable in the current environment.
Conclusion
The Indian equity market’s retreat on 13 Feb 2026 reflects a consolidation phase after recent gains, with broad sectoral weakness and small-cap underperformance weighing on sentiment. While the medium-term technical setup remains constructive, short-term caution is warranted given the prevailing market dynamics and global uncertainties. Investors should remain selective and vigilant as the market navigates this phase of volatility.
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