Sensex and Nifty Performance

The BSE Sensex opened sharply lower by 772.19 points and continued its downward trajectory to settle at 82,817.53, down 1.02% from the previous close. This marks a significant retreat, with the index now trading approximately 4.03% below its 52-week high of 86,159.02. The Nifty 50 mirrored this weakness, falling by 1.16%, reflecting the broad-based nature of the decline across large caps.

Technical indicators suggest a cautious outlook as the Sensex is currently trading below its 50-day moving average (DMA), although the 50DMA remains above the 200DMA, indicating that the medium-term trend is still intact but under pressure. Investors will be closely watching whether the index can hold key support levels in the coming sessions.

Sectoral Trends: IT Sector Bears the Brunt

All 38 sectors on the BSE ended the day in negative territory, a rare and telling sign of broad market weakness. The BSE IT sector was the top laggard, plunging 4.98%, led by heavyweight Infosys which tumbled 6.41%. Other IT stocks such as Birlasoft Ltd also suffered steep losses, down 11.58%, reflecting profit booking and concerns over near-term earnings growth amid global tech spending uncertainties.

Mid-cap and small-cap indices were hit even harder, with the BSE Midcap index falling 2.95% and the Smallcap index plunging 5.07%. This disproportionate weakness in smaller stocks highlights risk aversion among investors, who are favouring liquidity and quality amid volatile conditions.

Top Gainers and Losers Across Market Caps

Despite the widespread sell-off, a handful of stocks managed to buck the trend. Among large caps, Apollo Hospitals was the top gainer, inching up 0.50%, supported by steady healthcare demand and positive outlook on earnings. In the mid-cap space, Linde India rose 1.32%, while small caps saw a standout performance from Chamanlal Setia, surging 13.57% on robust volume and positive corporate developments.

On the downside, Muthoot Finance was the worst performer among mid-caps, plunging 11.44%, while Genesys International declined 11.88% in the small-cap segment. These sharp declines reflect sector-specific pressures and profit booking after recent rallies.

Market Breadth and Broader Indices

Market breadth was severely negative with only 38 advances against 462 declines across the BSE 500 stocks, resulting in an advance-decline ratio of 0.08x. This lopsided ratio underscores the pervasive selling pressure across sectors and market capitalisations.

The BSE 100 index fell 1.16%, underperforming the Sensex slightly, while the mid and small-cap indices underperformed further, signalling risk-off sentiment among investors. The sharp underperformance of smaller stocks may also reflect concerns over liquidity and earnings visibility in the near term.

Foreign Institutional and Domestic Institutional Activity

Foreign Institutional Investors (FIIs) remained net sellers, continuing their cautious stance amid global uncertainties and mixed economic data from key markets. Domestic Institutional Investors (DIIs) also showed limited buying interest, unable to offset the selling pressure from FIIs. This tug-of-war has contributed to the subdued market momentum and heightened volatility.

Investors are closely monitoring upcoming corporate earnings, with key results expected from ABB on 19 Feb 2026 and Schaeffler India on 24 Feb 2026. These results will be critical in setting the tone for sectoral performance and broader market direction in the near term.

Global Cues and Their Impact

Global markets were subdued, with major indices in the US and Europe trading lower amid concerns over inflationary pressures and geopolitical tensions. Asian markets also showed mixed performance, adding to the cautious sentiment among Indian investors. The subdued global backdrop has weighed on risk appetite, contributing to the broad-based decline in Indian equities.

Commodity prices remained volatile, with crude oil prices edging higher, adding to inflation concerns domestically. Currency markets saw the Indian rupee weaken slightly against the US dollar, further pressuring export-oriented sectors and IT stocks.

Notable Movers in the BSE 500 Universe

Among the broader BSE 500 stocks, Engineers India emerged as a top gainer with a robust 10.92% rise, buoyed by positive contract wins and improved order book visibility. Honasa Consumer and Signature Global also posted gains of 5.33% and 3.45% respectively, supported by sector-specific tailwinds.

Conversely, Birlasoft Ltd declined sharply by 11.58%, KPIT Technologies fell 7.85%, and Muthoot Finance dropped 11.44%, reflecting sectoral headwinds and profit booking. These moves highlight the divergence within the market, where select quality names continue to attract investor interest despite the overall bearish trend.

Outlook and Investor Takeaways

The current market correction reflects a combination of profit booking, sector-specific concerns, and cautious positioning ahead of key earnings and global macroeconomic developments. The IT sector’s sharp decline is a key drag on the indices, underscoring investor sensitivity to global tech spending trends and currency fluctuations.

Mid and small caps remain vulnerable to volatility, with investors favouring large caps and quality stocks amid uncertain conditions. The technical setup suggests that while the medium-term trend remains positive, short-term pressures could persist, warranting a cautious approach.

Investors should monitor upcoming corporate results closely, alongside global cues and domestic economic data, to gauge the sustainability of the current correction. Diversification and selective stock picking, focusing on companies with strong fundamentals and resilient business models, will be crucial in navigating the volatile environment.

Key Dates to Watch

Corporate earnings from ABB on 19 Feb 2026 and Schaeffler India on 24 Feb 2026 will provide important insights into sectoral performance and earnings momentum. These results could act as catalysts for market direction in the coming weeks.

Summary

In summary, the Indian equity market experienced a broad-based decline on 13 Feb 2026, with the Sensex falling over 850 points and all sectors ending in the red. The IT sector led the losses, while mid and small caps underperformed significantly. Market breadth was weak, and foreign institutional selling added to the pressure. Global uncertainties and cautious domestic sentiment are likely to keep volatility elevated in the near term, making selective stock selection and risk management paramount for investors.

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