Sensex and Nifty Performance Overview

The BSE Sensex opened at 82,902.73, shedding 772.19 points (-0.92%) in early trade and ended the session marginally higher but still down 754.56 points (-0.90%) from the previous close. The index remains 3.91% below its 52-week high of 86,159.02, signalling some consolidation after recent gains. Notably, the Sensex is trading below its 50-day moving average (DMA), although the 50DMA itself remains above the 200DMA, indicating a still intact medium-term uptrend despite short-term weakness.

The broader Nifty index mirrored this trend, with midcaps and smallcaps underperforming large caps. The BSE100 index declined by 1.04%, while the BSE Midcap and Smallcap indices fell more sharply by 2.95% and 5.07% respectively, highlighting a risk-off mood among investors favouring large-cap stability over smaller, more volatile stocks.

Sectoral Trends and Market Breadth

Market breadth was notably weak, with only 55 advances against 442 declines across the BSE500 universe, resulting in an advance-decline ratio of just 0.12x. All 38 sectors tracked on the BSE ended in the red, underscoring the pervasive selling pressure. The Information Technology (IT) sector was the worst performer, plunging 3.29%, weighed down by profit booking and cautious outlooks from global tech peers.

Other sectors such as metals, financials, and industrials also faced selling pressure, with heavyweight stocks dragging indices lower. The BSE Metal index was hit by a sharp fall in Hindalco Industries, which declined 4.87%, while Muthoot Finance, a key midcap financial stock, plunged 11.53%, contributing significantly to the midcap segment’s underperformance.

Top Gainers and Losers

Among the BSE500 stocks, Engineers India emerged as the top gainer with a robust 15.46% rally, buoyed by positive sectoral developments and renewed investor interest in public sector undertakings. Signature Global and Kirloskar Oil also posted healthy gains of 6.32% and 3.73% respectively, reflecting selective buying in realty and oil-related stocks.

On the downside, Muthoot Finance led the losers with a steep 11.53% decline, followed by Birlasoft Ltd and Praj Industries, which fell 9.41% and 6.33% respectively. These sharp losses in mid and smallcap stocks contributed to the broader market weakness and heightened volatility.

Large, Mid and Small Cap Highlights

Within the large-cap space, Hindustan Aeronautics was the top gainer, rising 1.58%, supported by defence sector optimism. Conversely, Hindalco Industries was the largest large-cap laggard, dropping 4.87% amid weak metal prices and profit booking.

Midcap stocks traded largely flat, with Linde India gaining 2.30% as a rare bright spot. Small caps were more volatile, with GE Power surging 17.66%, while Birlasoft Ltd declined sharply by 9.41%, underscoring the divergent fortunes within this segment.

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) showed limited buying interest, insufficient to offset the selling pressure from FIIs and retail investors.

This divergence in fund flows has contributed to the subdued market momentum, with investors awaiting clearer cues from upcoming corporate earnings and global macroeconomic developments.

Global Market Cues and Outlook

Global markets were subdued, with major indices in the US and Europe trading lower amid concerns over inflationary pressures and central bank policy tightening. Asian markets also reflected cautious sentiment, impacted by mixed economic data and geopolitical tensions.

These global headwinds have weighed on Indian equities, which are sensitive to foreign fund flows and global risk appetite. The Reserve Bank of India’s recent policy stance and inflation trajectory will be closely monitored by investors for indications of future interest rate moves.

Upcoming Corporate Earnings

Market participants are gearing up for key earnings announcements, including ABB scheduled for 19 Feb 2026 and Schaeffler India due on 24 Feb 2026. These results are expected to provide fresh insights into sectoral performance and corporate profitability, potentially influencing near-term market direction.

Investor Takeaway

Today’s market action highlights a cautious investor mood amid mixed domestic and global signals. The broad-based decline across sectors and market capitalisation segments suggests profit booking and risk aversion ahead of earnings season. While large caps have shown relative resilience, mid and small caps remain vulnerable to volatility.

Investors should closely monitor upcoming corporate results and macroeconomic data, particularly inflation and policy developments, to gauge the sustainability of the current trend. Selective stock picking with a focus on quality and valuation remains prudent in this environment.

Technical Perspective

The Sensex trading below its 50DMA is a short-term negative signal, although the 50DMA’s position above the 200DMA indicates the longer-term uptrend is intact. A sustained move below the 50DMA could invite further selling pressure, while a rebound above this level may restore confidence.

Market breadth and sectoral weakness, especially in IT and metals, warrant caution. However, pockets of strength in defence, engineering, and select small caps offer opportunities for investors with a higher risk appetite.

Conclusion

In summary, the Indian equity market experienced a broad sell-off on 13 Feb 2026, with the Sensex losing nearly 1% amid weak sectoral performance and subdued investor sentiment. The decline was led by IT and financial stocks, while mid and small caps bore the brunt of selling pressure. Foreign fund outflows and global uncertainties continue to weigh on market sentiment. Investors are advised to remain cautious and focus on quality stocks as the earnings season unfolds.

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