Overall Large-Cap Index Performance
The BSE 100 index, a benchmark for large-cap stocks, has been under pressure in recent trading sessions. The index’s 1.11% decline on 13 Feb 2026 adds to a cumulative 1.32% drop over the last five days, signalling a cautious market environment. This performance contrasts with the broader market’s mixed trends, where sectoral rotations and global cues have influenced investor behaviour.
The advance-decline ratio within the large-cap universe paints a clear picture of market breadth. With only 12 stocks advancing against 88 declining, the ratio stands at a subdued 0.14x, indicating that the majority of large-cap constituents are struggling to maintain momentum. This imbalance suggests that the current weakness is not isolated to a few names but is rather widespread across the segment.
Heavyweight Movers: Winners and Laggards
Bajaj Finance led the gains among large caps, delivering a robust 2.01% return. The company’s resilience amid a broadly negative market highlights its defensive qualities and strong fundamentals, which continue to attract investor interest. Conversely, Adani Power was the worst performer, plunging 6.24%. The sharp decline in Adani Power’s shares reflects sector-specific headwinds and possibly profit-taking after recent rallies.
Other notable movers include Larsen & Toubro (L&T), which has seen its technical score upgraded from mildly bullish to bullish, accompanied by a change in technical call from Hold to Buy. This upgrade reflects improving momentum and investor confidence in L&T’s order book and execution capabilities. Similarly, AU Small Finance and ONGC have also been upgraded from mildly bullish to bullish, signalling positive shifts in their near-term outlooks.
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Defensive Versus Cyclical Trends
The current market environment has accentuated the divergence between defensive and cyclical stocks within the large-cap space. Defensive names such as Bajaj Finance and Sun Pharma Industries have demonstrated relative strength, supported by upgrades in technical calls from Hold to Buy. These sectors benefit from steady earnings visibility and resilient demand, which appeal to risk-averse investors amid volatility.
On the other hand, cyclical sectors, including power and infrastructure, have faced headwinds. Adani Power’s steep decline exemplifies the pressure on energy stocks, possibly due to concerns over regulatory changes, commodity price fluctuations, or earnings disappointments. Similarly, UltraTech Cement’s technical call has been upgraded from Hold to Buy, suggesting selective opportunities even within cyclical segments, particularly where valuations and fundamentals align favourably.
Technical Upgrades and Market Sentiment
Recent technical upgrades across several large-cap stocks indicate pockets of optimism despite the broader weakness. Tech Mahindra’s score was downgraded from bullish to mildly bullish, yet its technical call improved from Hold to Buy, reflecting a nuanced view of its near-term prospects. This suggests that while momentum may have moderated, the stock remains attractive on a technical basis.
Similarly, Samvardhana Motherson and ONGC have been upgraded from mildly bullish to bullish, signalling improving trend dynamics. These upgrades are consistent with a market that is selectively rewarding quality and growth potential, even as overall sentiment remains cautious.
Market Outlook and Investor Considerations
Given the current landscape, investors should carefully balance exposure between defensive large caps that offer stability and cyclical names that may present value opportunities amid volatility. The broad decline in the large-cap index and the lopsided advance-decline ratio suggest that caution is warranted, but selective buying in fundamentally strong and technically upgraded stocks could yield favourable outcomes.
Monitoring technical calls and recent upgrades can provide valuable guidance for portfolio adjustments. Stocks like Larsen & Toubro, UltraTech Cement, and Sun Pharma Industries, which have seen their technical calls shift to Buy, merit close attention for potential entry points. Meanwhile, vigilance is advised for laggards such as Adani Power, where downside risks remain elevated.
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Conclusion
The large-cap segment is navigating a challenging phase marked by broad-based declines and a pronounced imbalance between advancing and declining stocks. Defensive sectors continue to provide relative shelter, while cyclical stocks face pressure amid evolving market dynamics. Technical upgrades in select large caps offer glimmers of opportunity for discerning investors.
As the market digests global and domestic cues, a cautious yet selective approach focusing on quality large caps with improving technical and fundamental profiles is advisable. Keeping abreast of technical call changes and sectoral trends will be crucial for optimising portfolio performance in this environment.
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