Market Overview and Index Performance

The BSE Sensex opened at 82,902.73 but quickly gave up ground, closing at 82,939.96, down 734.96 points or 0.88%. The index remains 3.85% below its 52-week high of 86,159.02. The Nifty 50 mirrored this weakness, reflecting the broad market downturn. Notably, the Sensex is trading below its 50-day moving average (DMA), signalling short-term bearish momentum, although the 50DMA remains above the 200DMA, indicating that the longer-term trend is still intact.

The BSE100 large-cap index declined by 0.97%, while the mid-cap and small-cap indices suffered steeper losses of 2.95% and 5.07% respectively. Mid-cap stocks traded largely flat during the session, but the overall market sentiment was decidedly negative.

Sectoral Trends: IT Sector Bears the Brunt

All 38 sectors on the BSE ended in the red, a rare and stark indication of widespread selling pressure. The Nifty IT sector was the worst performer, plunging 4.86% as heavyweight stocks like Infosys dropped 5.15%. This sectoral weakness dragged the broader market lower, reflecting concerns over earnings and global technology demand.

Other sectors also faced selling pressure, though to a lesser extent, with no sector managing to close in positive territory. This uniform decline underscores the cautious stance adopted by investors amid uncertain macroeconomic and geopolitical developments globally.

Top Gainers and Losers: Sharp Divergence

Despite the broad sell-off, a handful of stocks bucked the trend. Engineers India led the gainers on the BSE500 with a robust 10.62% rise, followed by Honasa Consumer and Kirloskar Oil, which gained 4.01% and 3.26% respectively. Among large caps, SBI Life Insurance was the top gainer, inching up 0.73%, while Bharat Forge led mid-caps with a 2.53% advance. Small caps saw Divgi Torq surge 10.97%, standing out amid the widespread declines.

On the downside, Muthoot Finance was the biggest loser across all market caps, plunging 9.48%. Birlasoft Ltd and Praj Industries also suffered steep declines of 7.25% and 5.72% respectively. Among large caps, Infosys’s 5.15% fall was notable, while mid-cap Muthoot Finance and small-cap NIBE dropped 9.48% and 11.47% respectively, highlighting the uneven impact of selling pressure across market capitalisations.

Market Breadth and Capitalisation Trends

Market breadth was severely negative, with only 37 advances against 463 declines across the BSE500, resulting in an advance-decline ratio of just 0.08x. This lopsided ratio highlights the pervasive selling pressure across stocks of all sizes.

Large caps, while declining less sharply than smaller peers, still closed lower by nearly 1%. Mid caps and small caps bore the brunt of the sell-off, falling 2.95% and 5.07% respectively, signalling risk aversion among investors towards more volatile segments of the market.

Foreign Institutional and Domestic Institutional Activity

Foreign institutional investors (FIIs) remained cautious amid mixed global cues, with subdued buying interest observed in the Indian markets. Domestic institutional investors (DIIs) also showed restrained activity, reflecting a wait-and-watch approach ahead of upcoming corporate earnings and global economic data releases.

Upcoming quarterly results from major companies such as ABB (scheduled for 19 Feb 2026) and Schaeffler India (due 24 Feb 2026) are likely to influence market direction in the near term, as investors seek clarity on corporate earnings growth amid a challenging macroeconomic backdrop.

Global Cues and Their Impact

Global markets were mixed, with US indices showing modest gains while European and Asian markets struggled amid concerns over inflation and geopolitical tensions. The cautious global environment weighed on investor sentiment in India, contributing to the broad-based declines seen today.

Currency markets also reflected this uncertainty, with the Indian rupee showing marginal weakness against the US dollar, adding to the cautious stance among foreign investors.

Outlook and Investor Takeaways

The current market correction, led by IT and small-cap stocks, suggests investors are recalibrating risk amid global uncertainties and domestic earnings season approaching. The fact that the Sensex remains below its 50DMA but above the 200DMA indicates a short-term pause within a longer-term uptrend.

Investors should monitor upcoming corporate results closely, particularly from key sectors such as technology, financial services, and manufacturing, to gauge the sustainability of earnings growth. Additionally, tracking foreign fund flows and global macroeconomic developments will be crucial in assessing market direction over the coming weeks.

While the broad market weakness may present selective buying opportunities in fundamentally strong stocks, caution is warranted given the current volatility and sectoral divergences.

Key Upcoming Corporate Results

Market participants will be closely watching the quarterly earnings announcements from ABB on 19 Feb 2026 and Schaeffler India on 24 Feb 2026. These results are expected to provide insights into industrial demand and supply chain dynamics, which could influence sectoral performance and broader market sentiment.

Technical Indicators and Moving Averages

The Sensex’s position below the 50DMA signals short-term bearishness, but the 50DMA remaining above the 200DMA suggests the medium to long-term trend remains constructive. This technical setup implies that while a correction or consolidation phase is underway, the overall market uptrend is not yet broken.

Investors should watch for a decisive move above the 50DMA to confirm a resumption of upward momentum or a breach of the 200DMA as a sign of deeper correction.

Conclusion

In summary, the Indian equity market experienced a broad-based decline on 13 Feb 2026, with the IT sector leading losses and market breadth severely negative. The cautious stance of foreign and domestic investors amid mixed global cues and upcoming earnings announcements has contributed to the subdued sentiment. While the technical picture suggests short-term weakness, the longer-term trend remains intact, warranting a balanced approach to investing in the current environment.

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