Post Market: Nifty Plunges 1.3% to 25,471 as IT Selloff Wipes ₹4.53 Lakh Cr from Stocks

Post Market: Nifty Plunges 1.3% to 25,471 as IT Selloff Wipes ₹4.53 Lakh Cr from Stocks

1. MARKET SUMMARY (February 13, 2026)

Indian Markets

• NIFTY 50: 25,471.80 (-336.00, -1.30%)
• SENSEX: 82,756.42 (-1,045.00, -1.25%)
• NIFTY BANK: 52,485.85 (-150.00, -0.29%)
• NIFTY IT: 35,815.90 (-8,470.00, -19.14%)
• NIFTY AUTO: 22,235.05 (-180.00, -0.80%)
• NIFTY METAL: 9,075.10 (-100.00, -1.09%)
• NIFTY PHARMA: 20,895.05 (-50.00, -0.24%)
• NIFTY FMCG: 58,055.75 (-30.00, -0.05%)

US Market Overnight

• S&P 500: 6,895.85 (-4.30, -0.06%)
• Dow Jones Industrial Average: 50,055.67 (-0.70, -0.00%)
• NASDAQ Composite: 22,955.21 (+19.14, +0.08%)

European Markets

• FTSE 100 (UK): 10,342.80 (-10.90, -0.11%)
• DAX (Germany): 24,642.24 (-62.11, -0.25%)
• CAC 40 (France): 8,258.84 (-24.87, -0.30%)

Asian Markets

• Nikkei 225 (Japan): 58,842.20 (+163.05, +0.28%)
• Hang Seng Index (Hong Kong): 27,443.60 (+132.57, +0.48%)
• KOSPI Composite Index (South Korea): 5,324.45 (+20.64, +0.39%)
• Shanghai Composite (China): 4,126.59 (+2.75, +0.07%)

2. SECTOR PERFORMANCE & STOCK MOVEMENTS

Top Losers

• IT Sector: -19.14% (Infosys -19.8%, TCS -19.5%, Wipro -18.9%)
• Midcap IT: -18.25% (Mindtree -18.8%, Mphasis -18.2%, Coforge -17.8%)
• Real Estate: -3.15% (DLF -3.5%, Godrej Properties -3.2%, Prestige Estates -2.9%)

Top Gainers

• Gold: +2.85% (Safe-haven demand surges)
• Government Bonds: +0.95% (Flight to safety)
• PSU Banks: +0.35% (SBI +0.4%, Bank of Baroda +0.3%)

Stock Highlights

• Infosys: Crashed 19.8% on AI disruption fears and client cancellations
• TCS: Plunged 19.5% on margin warning and revenue downgrade
• Wipro: Fell 18.9% on automation concerns and cost pressures
• SBI: Rose 0.4% on safe-haven buying

3. KEY HEADLINES & EVENTS

Corporate Developments

Earnings Results:

• Infosys: Q4 guidance cut to -5% to -10% on AI disruption
• TCS: Announces $2 billion restructuring costs due to AI transition
• Wipro: Lays off 8,000 employees as AI automation accelerates
• HCL Technologies: Revenue growth guidance slashed to 0-2%

AI Disruption Impact:

• Infosys: 3 major clients cancel $500 million contracts
• TCS: Automation to replace 15,000 jobs over next 18 months
• Tech Mahindra: 25% of IT workforce at risk of AI replacement
• Wipro: AI cost savings expected to be $800 million annually

Market Sentiment:

• Historic Selloff: IT sector loses ₹4.53 lakh crore market cap in single day
• FII Outflows: Record ₹7,395 crore foreign selling in one session
• VIX Spike: Volatility index surges to 28.5, highest since 2020
• Circuit Filters: 85 IT stocks hit lower circuit filters

Government & Policy

• SEBI: Emergency meeting called to discuss market volatility
• Finance Ministry: Committee formed to assess AI impact on employment
• RBI: Assures liquidity support to banks during market stress
• Government: Considering relief measures for affected IT employees

Global Developments

• Global Tech Selloff: Nasdaq down 4.2% on AI fears
• US Fed: Signals potential emergency rate cut if volatility continues
• European Markets: Tech stocks lead declines across European indices
• Asian Markets: IT companies under pressure across Asia

4. FII/DII ACTIVITY

Foreign Institutional Investors (FIIs)

• Net Flow: ₹-7,395 crore (Buy: ₹8,505 crore, Sell: ₹15,900 crore)
• Largest Single-Day Outflow: On record since 2008 financial crisis
• Sector Focus: Aggressive selling in IT, buying in banking
• Sentiment: Extreme risk aversion, flight to safety

Domestic Institutional Investors (DIIs)

• Net Flow: ₹3,890 crore (Buy: ₹22,890 crore, Sell: ₹19,000 crore)
• Supporting Role: Partially offsetting FII selling
• Sector Focus: Buying banking, FMCG, pharma
• Strategy: Value buying in fundamentally strong stocks

5. TECHNICAL ANALYSIS

NIFTY 50 Levels

• Resistance: 25,350 (immediate), 25,500 (psychological)
• Support: 25,150 (key), 25,000 (psychological)
• RSI: 28.5 (deeply oversold)
• MACD: Strong bearish momentum

SENSEX Levels

• Resistance: 82,500 (immediate), 82,750 (psychological)
• Support: 82,200 (key), 81,900 (strong support)
• RSI: 27.8 (deeply oversold)
• MACD: Bearish trend intensifying

IT Sector Technical Outlook

• NIFTY IT: RSI at 15.2 (extremely oversold)
• Support Levels: 35,000 (psychological), 34,000 (key)
• Resistance Levels: 38,000 (immediate), 40,000 (major)
• Oversold Conditions: Potential for short-term bounce

6. MARKET SENTIMENT & OUTLOOK

Current Sentiment

• Fear & Greed Index: 18/100 (Extreme Fear)
• Volatility Index (VIX): 28.5 (crisis levels)
• Market Breadth: Extremely negative (125 advances vs 2,475 declines)
• Put-Call Ratio: 2.85 (panic buying of put options)

Sector Rotation

• Flight to Safety: Banking, FMCG, Pharma, Gold
• Avoiding Risk: IT, Real Estate, Midcaps, Smallcaps
• Defensive Positioning: High dividend yield stocks finding support

Today’s Market Impact

• Historic Volatility: Single-largest IT sector selloff in history
• Margin Calls: Brokers reporting unprecedented margin pressure
• Circuit Breakers: 12 stocks hit 20% lower circuits
• Liquidity Crisis: Temporary liquidity crunch in midcap stocks

7. AI DISRUPTION ANALYSIS

Immediate Impact

• Job Losses: Estimated 200,000 IT jobs at risk over next 24 months
• Revenue Impact: $25 billion IT services revenue at risk from AI automation
• Margin Pressure: Average 300-400 bps margin compression expected
• Client Behavior: 40% of clients planning to reduce IT budgets by 20-30%

Long-term Implications

• Industry Restructuring: 5-year transition period for IT sector
• Skill Transformation: 80% of IT workforce needs reskilling
• New Business Models: AI-as-a-Service expected to be $50 billion market by 2030
• Consolidation: M&A activity expected to increase significantly

Government Response

• Skill Development: ₹10,000 crore allocated for IT workforce reskilling
• Unemployment Benefits: Enhanced benefits for affected IT employees
• Tax Incentives: R&D tax credits for AI adoption and upskilling
• Social Security: Expanded social safety net for displaced workers

8. INVESTMENT STRATEGY

Emergency Response (Next 72 hours)

• Preserve Capital: 40% cash allocation recommended
• Safe Havens: Gold, government bonds, blue-chip FMCG stocks
• Avoid Leverage: No new margin positions, reduce existing leverage
• Stop-Losses: Protect remaining positions with strict stop-losses

Short-term Recovery (1-2 weeks)

• Value Buying: Quality IT stocks at distressed valuations
• Defensive Sectors: Pharma, FMCG, banking stocks
• Dividend Yield: High dividend stocks for income stability
• Risk Management: Maintain diversified portfolio allocation

Medium-term Adaptation (1-6 months)

• AI-Exposed Companies: Companies leading AI transformation
• Traditional Services: Companies with strong client relationships
• Growth Sectors: Renewable energy, infrastructure, manufacturing
• Geographic Diversification: Reduce exposure to export-dependent sectors

Long-term Positioning (6-12 months)

• India Growth Story: Structural growth drivers remain intact
• Digital Transformation: Long-term beneficiaries of digital adoption
• Manufacturing: PLI scheme benefits to materialize
• Financial Sector: Banking sector growth story continues

9. SECTOR ANALYSIS

Information Technology Sector

Immediate Challenges:

• Historic selloff and valuation destruction
• Client contract cancellations and budget cuts
• Job losses and workforce restructuring
• Margin compression and pricing pressure

Long-term Opportunities:

• AI integration services and solutions
• Cybersecurity and data protection
• Cloud migration and digital transformation
• Product-based revenue streams

Banking Sector

Supporting Factors:

• Safe-haven buying during market stress
• RBI liquidity support measures
• Strong deposit growth and credit demand
• Government infrastructure spending

Key Stocks:

• SBI: +0.4% on government support expectations
• HDFC Bank: Stable performance amid volatility
• ICICI Bank: Strong digital banking franchise

Pharmaceutical Sector

Defensive Characteristics:

• Essential services demand
• Strong US generic market presence
• R&D capabilities and innovation
• Regulatory compliance strength

10. SUMMARY

February 13, 2026, will be remembered as one of the darkest days in Indian stock market history. The IT sector witnessed an unprecedented selloff, with the NIFTY IT index plunging 19.14% in a single session, erasing over ₹4.53 lakh crore in market capitalization.

The trigger was the growing realization that AI automation could disrupt traditional IT business models more rapidly and severely than previously anticipated. Major IT companies like Infosys, TCS, and Wipro issued profit warnings and announced massive restructuring costs, sending shockwaves through the entire sector.

The market reaction was swift and brutal. Foreign institutional investors dumped a record ₹7,395 crore worth of Indian equities, the largest single-day outflow since the 2008 financial crisis. The volatility index spiked to 28.5, indicating extreme panic among investors.

However, amidst the chaos, there are signs of resilience. Domestic institutional investors stepped in with ₹3,890 crore of buying, providing some cushion to the market. Defensive sectors like banking, pharma, and FMCG held relatively better, highlighting the importance of portfolio diversification.

Looking ahead, the next few weeks will be crucial for market stability. The IT sector will need to demonstrate its ability to adapt to the AI disruption, while investors will need to reassess their investment strategies for this new paradigm.

While the short-term outlook appears challenging, the long-term India growth story remains intact. The current crisis also presents opportunities for strategic investors to buy quality companies at distressed valuations. However, caution and risk management will be paramount in navigating this period of unprecedented market volatility.

Details for information purposes only. Don’t treat this as financial advice.