Last Updated on February 12, 2026 11:34 pm by INDIAN AWAAZ

BIZ DESK Stock Market Wrap | 12 February 2026

Indian equity markets ended Thursday’s session in the red as heavy selling pressure in information technology stocks dragged benchmark indices lower, even as selective buying in financial counters helped limit broader losses.

The BSE Sensex declined 558.72 points (0.66%) to close at 83,674.92, while the NSE Nifty50 slipped 146.65 points (0.57%) to settle at 25,807.20. The decline was largely attributed to a sharp fall in IT heavyweights, with investors growing cautious over how rapid artificial intelligence adoption could impact future profitability of Indian software exporters.

Despite today’s weakness, market sentiment for the month remains relatively stable. Both the Sensex and Nifty have gained nearly 2.5% in February so far, trading around 2% below their record highs, supported by improving global sentiment and recent positive cues on trade-related developments.

IT Sector Takes a Major Hit

The Nifty IT index plunged 4.7%, touching a four-month low of 33,442, marking one of its sharpest single-day falls in recent months.

Major IT stocks witnessed heavy losses:

• TCS (-5.35%)
• Infosys (-5.08%)
• Wipro (-4.70%)
• Tech Mahindra (-4.55%)
• HCL Tech (-3.51%)
• Coforge, Mphasis, LTIMindtree also ended sharply lower

Market participants believe concerns are rising that AI-led automation could compress margins and slow revenue growth for IT service companies. The IT index, which had already fallen 12.6% in 2025, has now dropped nearly 11% in 2026, confirming sustained weakness in the sector.

Foreign Investors Remain Strong Buyers

In a positive signal, Foreign Institutional Investors (FIIs) continued their buying spree. FIIs were net buyers worth ₹944 crore on Wednesday, extending the positive momentum.

Total foreign inflows in February have now reached nearly $1.7 billion, after three consecutive months of outflows. Analysts believe this steady foreign buying is helping the market remain resilient despite sector-specific selloffs.

Sector-Wise Performance (Detailed)

1. Information Technology (Worst Performer)

• Biggest drag on the market
• Sharp correction due to AI disruption fears and global tech uncertainty
• Export-linked IT companies faced maximum profit booking

Trend: Bearish

2. Banking & Financial Services (Supportive)

Financial stocks provided much-needed support and prevented deeper index losses. Stocks like:

• Bajaj Finance (+2.65%)
• Shriram Finance (+2.38%)
• ICICI Bank (+1.48%)

showed strength as investors rotated money into stable domestic-growth sectors.

Trend: Mildly positive

3. Auto Sector (Mixed but Resilient)

Auto shares were mixed, with selective buying seen in premium auto names.

• Eicher Motors (+2.07%) was among the top gainers

Auto stocks benefited from expectations of steady demand and improving rural sentiment.

Trend: Mixed-to-positive

4. Consumer & Retail (Selective Buying)

• Trent (+1.61%) performed strongly, reflecting continued investor confidence in retail and consumption plays.

Trend: Positive

5. Midcap & Smallcap (Weak)

Broader markets underperformed due to cautious sentiment:

• Nifty Midcap 100 (-0.58%)
• Nifty Smallcap 100 (-0.67%)
• Nifty Next 50 (-0.55%)

This indicates investors preferred safety in large-cap names rather than riskier segments.

Trend: Negative

6. Overall Market Breadth (Negative)

Market breadth remained weak, signaling consolidation:

• Declining stocks (BSE): 2,433
• Advancing stocks: 1,647
• 52-week highs: 127
• 52-week lows: 97

This shows the market is witnessing selective selling rather than a broad panic.

Top Gainers and Losers

Top Gainers (Sensex/Nifty Influence)

• Bajaj Finance
• Shriram Finance
• ICICI Bank
• Eicher Motors
• Trent

Top Losers

• TCS
• Infosys
• Wipro
• Tech Mahindra
• HCL Tech

Market Outlook

Analysts believe markets are currently in a consolidation phase, with investors watching global tech cues and corporate earnings trends. While the IT sector remains under pressure, continued FII buying and strength in financials could help keep benchmark indices stable in the near term.

Overall sentiment: Cautious, with sector rotation underway.