BSE Metal

<img class="size-full wp-image-13828241" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214040556_Market_down1.jpeg" alt="Indian benchmarks indices erased some of the previous week gains and ended the week in the red, led by weak global cues and continued selling in the IT names amid growing concerns over the impact of artificial intelligence." width="1280" height="720" /> Indian benchmarks indices erased some of the previous week gains and ended the week in the red, led by weak global cues and continued selling in the IT names amid growing concerns over the impact of artificial intelligence.

<img class="size-full wp-image-13828227" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035809_Nifty_sensex.jpg" alt="In this week, the BSE Sensex declined 953.64 points, or 1.14 percent, to close at 82,626.76, while the Nifty50 shed 222.6 points, or 0.86 percent, to end at 25,471.10." width="1280" height="720" /> In this week, the BSE Sensex declined 953.64 points, or 1.14 percent, to close at 82,626.76, while the Nifty50 shed 222.6 points, or 0.86 percent, to end at 25,471.10.

<img class="size-full wp-image-13828228" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035813_Nifty_sensex_marketup.jpg" alt="The BSE Smallcap index rose 0.8 percent during the week, with JITF Infralogistics, GE Power India, Lincoln Pharmaceuticals, Avanti Feeds, Blue Cloud Softech Solutions, TVS Supply Chain Solutions, Axiscades Technologies,Sika Interplant Systems, SML Mahindra, Lumax Industries adding between 25-46 percent, while SpiceJet, Ecos India Mobility &amp; Hospitality, Safari Industries (India), Jyoti Resins and Adhesives, CarTrade Tech,Ceinsys Tech, Pearl Global Industries, HLE Glascoat, Foods and Inns, Reliance Infrastructure, Mastek losing between 13-23 percent." width="1280" height="720" /> The BSE Smallcap index rose 0.8 percent during the week, with JITF Infralogistics, GE Power India, Lincoln Pharmaceuticals, Avanti Feeds, Blue Cloud Softech Solutions, TVS Supply Chain Solutions, Axiscades Technologies,Sika Interplant Systems, SML Mahindra, Lumax Industries adding between 25-46 percent, while SpiceJet, Ecos India Mobility &amp; Hospitality, Safari Industries (India), Jyoti Resins and Adhesives, CarTrade Tech,Ceinsys Tech, Pearl Global Industries, HLE Glascoat, Foods and Inns, Reliance Infrastructure, Mastek losing between 13-23 percent.

<img class="size-full wp-image-13828226" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035805_market_stocks_sensex_Nifty.jpg" alt="The Nifty Midcap index fell 0.4 percent during the week, dragged by Coforge, KPIT Technologies, LT Technology Services, Hexaware Technologies, Oracle Financial Services Software, Oil India, Tata Elxsi, while gainers included Linde India, Bharat Forge, Kalyan Jewellers India, Crompton Greaves Consumer Electrical, Astral, Tube Investments of India." width="1280" height="720" /> The Nifty Midcap index fell 0.4 percent during the week, dragged by Coforge, KPIT Technologies, LT Technology Services, Hexaware Technologies, Oracle Financial Services Software, Oil India, Tata Elxsi, while gainers included Linde India, Bharat Forge, Kalyan Jewellers India, Crompton Greaves Consumer Electrical, Astral, Tube Investments of India.

<img class="size-full wp-image-13828224" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035757_market_flat.jpg" alt="The BSE Largecap index shed 0.6 percent during the week, dragged by Infosys, HCL Technologies, Tata Consultancy Services, Adani Power, LTIMindtree,Wipro, REC, DLF, Coal India, Tech Mahindra, while gainers were State Bank of India, Eicher Motors, Samvardhana Motherson International,Lenskart Solutions,Shriram Finance, Tata Motors, Swiggy, Apollo Hospitals Enterprises, Indus Towers." width="1280" height="720" /> The BSE Largecap index shed 0.6 percent during the week, dragged by Infosys, HCL Technologies, Tata Consultancy Services, Adani Power, LTIMindtree,Wipro, REC, DLF, Coal India, Tech Mahindra, while gainers were State Bank of India, Eicher Motors, Samvardhana Motherson International,Lenskart Solutions,Shriram Finance, Tata Motors, Swiggy, Apollo Hospitals Enterprises, Indus Towers.

<img class="size-full wp-image-13828231" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035824_sensex_nifty_sensex_market.jpg" alt="Sectoral performance remained mixed during the week, with heavy selling seen in technology stocks. The Nifty IT index declined more than 8 percent, Nifty Energy and Oil &amp; Gas indices fell around 2 percent each, while the Nifty FMCG index slipped nearly 2 percent. On the other side, the Nifty Media index surged 5 percent, Nifty PSU Bank, Consumer Durables, and Defence indices advanced roughly 3 percent each. Meanwhile, the Nifty Auto gained about 2 percent, and the Nifty Pharma index added around 1 percent for the week." width="1290" height="720" /> Sectoral performance remained mixed during the week, with heavy selling seen in technology stocks. The Nifty IT index declined more than 8 percent, Nifty Energy and Oil &amp; Gas indices fell around 2 percent each, while the Nifty FMCG index slipped nearly 2 percent. On the other side, the Nifty Media index surged 5 percent, Nifty PSU Bank, Consumer Durables, and Defence indices advanced roughly 3 percent each. Meanwhile, the Nifty Auto gained about 2 percent, and the Nifty Pharma index added around 1 percent for the week.

<img class="size-full wp-image-13828229" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035817_nifty_sensex_stocks.jpg" alt="Foreign Institutional Investors (FIIs) turned net sellers during the week after offloading equities in Friday’s session, reversing their buying trend seen in the first four trading sessions. Overall, FIIs sold equities worth Rs 4,019.09 crore during the week. In contrast, Domestic Institutional Investors (DIIs) extended support to the market, with net purchases of Rs 6,883.81 crore" width="1280" height="720" /> Foreign Institutional Investors (FIIs) turned net sellers during the week after offloading equities in Friday’s session, reversing their buying trend seen in the first four trading sessions. Overall, FIIs sold equities worth Rs 4,019.09 crore during the week. In contrast, Domestic Institutional Investors (DIIs) extended support to the market, with net purchases of Rs 6,883.81 crore.

<img class="wp-image-13828225 size-full" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035801_market_nifty_sensex.jpg" alt="During the week, Tata Consultancy Services recorded the steepest erosion in market capitalisation, followed by Infosys, HDFC Bank, and Reliance Industries. On the other hand, State Bank of India, Bajaj Finance, and Larsen &amp; Toubro witnessed an increase in their market capitalisation. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)" width="1280" height="720" /> During the week, Tata Consultancy Services recorded the steepest erosion in market capitalisation, followed by Infosys, HDFC Bank, and Reliance Industries. On the other hand, State Bank of India, Bajaj Finance, and Larsen &amp; Toubro witnessed an increase in their market capitalisation. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)</dd><dd class="wp-caption-dd">

<img class="size-full wp-image-13631849" src="https://images.moneycontrol.com/static-mcnews/2025/10/20251025043820_rupeegain_dollar.jpg" alt="The Indian rupee ended marginally higher for the second consecutive week, closing at 90.64 per dollar on February 13, compared to 90.66 on February 6. During the week, the domestic currency traded within a range of 90.37 to 90.78." width="1280" height="720" /> The Indian rupee ended marginally higher for the second consecutive week, closing at 90.64 per dollar on February 13, compared to 90.66 on February 6. During the week, the domestic currency traded within a range of 90.37 to 90.78.

FIIs sold equities worth Rs 4,019.09 crore during the week. In contrast, Domestic Institutional Investors (DIIs) extended support to the market, with net purchases of Rs 6,883.81 crore.

Ownership, Material Conflicts of Interest and Disciplinary History

MCD is a wholly owned subsidiary of Network 18 Media & Investments Ltd ("Network18"), in which Independent Media Trust (IMT) holds 56.89% stake. Reliance Industries Limited ("RIL") is the sole beneficiary of IMT. Network18 and RIL and their subsidiaries, joint ventures and associates can be considered as associates of MCD.

Details of Associate

Receipt of Compensation

Third-Party Compensation

Employment History

Market-Making Activities

Use of Artificial Intelligence

Indian benchmarks indices erased some of the previous week gains and ended the week in the red, led by weak global cues and continued selling in the IT names amid growing concerns over the impact of artificial intelligence.

In this week, the BSE Sensex declined 953.64 points, or 1.14 percent, to close at 82,626.76, while the Nifty50 shed 222.6 points, or 0.86 percent, to end at 25,471.10.

The BSE Smallcap index rose 0.8 percent during the week, with JITF Infralogistics, GE Power India, Lincoln Pharmaceuticals, Avanti Feeds, Blue Cloud Softech Solutions, TVS Supply Chain Solutions, Axiscades Technologies,Sika Interplant Systems, SML Mahindra, Lumax Industries adding between 25-46 percent, while SpiceJet, Ecos India Mobility &amp; Hospitality, Safari Industries (India), Jyoti Resins and Adhesives, CarTrade Tech,Ceinsys Tech, Pearl Global Industries, HLE Glascoat, Foods and Inns, Reliance Infrastructure, Mastek losing between 13-23 percent.

The Nifty Midcap index fell 0.4 percent during the week, dragged by Coforge, KPIT Technologies, LT Technology Services, Hexaware Technologies, Oracle Financial Services Software, Oil India, Tata Elxsi, while gainers included Linde India, Bharat Forge, Kalyan Jewellers India, Crompton Greaves Consumer Electrical, Astral, Tube Investments of India.

The BSE Largecap index shed 0.6 percent during the week, dragged by Infosys, HCL Technologies, Tata Consultancy Services, Adani Power, LTIMindtree,Wipro, REC, DLF, Coal India, Tech Mahindra, while gainers were State Bank of India, Eicher Motors, Samvardhana Motherson International,Lenskart Solutions,Shriram Finance, Tata Motors, Swiggy, Apollo Hospitals Enterprises, Indus Towers.

Sectoral performance remained mixed during the week, with heavy selling seen in technology stocks. The Nifty IT index declined more than 8 percent, Nifty Energy and Oil &amp; Gas indices fell around 2 percent each, while the Nifty FMCG index slipped nearly 2 percent. On the other side, the Nifty Media index surged 5 percent, Nifty PSU Bank, Consumer Durables, and Defence indices advanced roughly 3 percent each. Meanwhile, the Nifty Auto gained about 2 percent, and the Nifty Pharma index added around 1 percent for the week.

Foreign Institutional Investors (FIIs) turned net sellers during the week after offloading equities in Friday’s session, reversing their buying trend seen in the first four trading sessions. Overall, FIIs sold equities worth Rs 4,019.09 crore during the week. In contrast, Domestic Institutional Investors (DIIs) extended support to the market, with net purchases of Rs 6,883.81 crore

During the week, Tata Consultancy Services recorded the steepest erosion in market capitalisation, followed by Infosys, HDFC Bank, and Reliance Industries. On the other hand, State Bank of India, Bajaj Finance, and Larsen &amp; Toubro witnessed an increase in their market capitalisation. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)

The Indian rupee ended marginally higher for the second consecutive week, closing at 90.64 per dollar on February 13, compared to 90.66 on February 6. During the week, the domestic currency traded within a range of 90.37 to 90.78.

Market slips 1%; IT stocks worst hits amid renewed AI fears

<img class="size-full wp-image-13828241" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214040556_Market_down1.jpeg" alt="Indian benchmarks indices erased some of the previous week gains and ended the week in the red, led by weak global cues and continued selling in the IT names amid growing concerns over the impact of artificial intelligence." width="1280" height="720" /> Indian benchmarks indices erased some of the previous week gains and ended the week in the red, led by weak global cues and continued selling in the IT names amid growing concerns over the impact of artificial intelligence.

<img class="size-full wp-image-13828227" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035809_Nifty_sensex.jpg" alt="In this week, the BSE Sensex declined 953.64 points, or 1.14 percent, to close at 82,626.76, while the Nifty50 shed 222.6 points, or 0.86 percent, to end at 25,471.10." width="1280" height="720" /> In this week, the BSE Sensex declined 953.64 points, or 1.14 percent, to close at 82,626.76, while the Nifty50 shed 222.6 points, or 0.86 percent, to end at 25,471.10.

<img class="size-full wp-image-13828228" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035813_Nifty_sensex_marketup.jpg" alt="The BSE Smallcap index rose 0.8 percent during the week, with JITF Infralogistics, GE Power India, Lincoln Pharmaceuticals, Avanti Feeds, Blue Cloud Softech Solutions, TVS Supply Chain Solutions, Axiscades Technologies,Sika Interplant Systems, SML Mahindra, Lumax Industries adding between 25-46 percent, while SpiceJet, Ecos India Mobility &amp; Hospitality, Safari Industries (India), Jyoti Resins and Adhesives, CarTrade Tech,Ceinsys Tech, Pearl Global Industries, HLE Glascoat, Foods and Inns, Reliance Infrastructure, Mastek losing between 13-23 percent." width="1280" height="720" /> The BSE Smallcap index rose 0.8 percent during the week, with JITF Infralogistics, GE Power India, Lincoln Pharmaceuticals, Avanti Feeds, Blue Cloud Softech Solutions, TVS Supply Chain Solutions, Axiscades Technologies,Sika Interplant Systems, SML Mahindra, Lumax Industries adding between 25-46 percent, while SpiceJet, Ecos India Mobility &amp; Hospitality, Safari Industries (India), Jyoti Resins and Adhesives, CarTrade Tech,Ceinsys Tech, Pearl Global Industries, HLE Glascoat, Foods and Inns, Reliance Infrastructure, Mastek losing between 13-23 percent.

<img class="size-full wp-image-13828226" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035805_market_stocks_sensex_Nifty.jpg" alt="The Nifty Midcap index fell 0.4 percent during the week, dragged by Coforge, KPIT Technologies, LT Technology Services, Hexaware Technologies, Oracle Financial Services Software, Oil India, Tata Elxsi, while gainers included Linde India, Bharat Forge, Kalyan Jewellers India, Crompton Greaves Consumer Electrical, Astral, Tube Investments of India." width="1280" height="720" /> The Nifty Midcap index fell 0.4 percent during the week, dragged by Coforge, KPIT Technologies, LT Technology Services, Hexaware Technologies, Oracle Financial Services Software, Oil India, Tata Elxsi, while gainers included Linde India, Bharat Forge, Kalyan Jewellers India, Crompton Greaves Consumer Electrical, Astral, Tube Investments of India.

<img class="size-full wp-image-13828224" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035757_market_flat.jpg" alt="The BSE Largecap index shed 0.6 percent during the week, dragged by Infosys, HCL Technologies, Tata Consultancy Services, Adani Power, LTIMindtree,Wipro, REC, DLF, Coal India, Tech Mahindra, while gainers were State Bank of India, Eicher Motors, Samvardhana Motherson International,Lenskart Solutions,Shriram Finance, Tata Motors, Swiggy, Apollo Hospitals Enterprises, Indus Towers." width="1280" height="720" /> The BSE Largecap index shed 0.6 percent during the week, dragged by Infosys, HCL Technologies, Tata Consultancy Services, Adani Power, LTIMindtree,Wipro, REC, DLF, Coal India, Tech Mahindra, while gainers were State Bank of India, Eicher Motors, Samvardhana Motherson International,Lenskart Solutions,Shriram Finance, Tata Motors, Swiggy, Apollo Hospitals Enterprises, Indus Towers.

<img class="size-full wp-image-13828231" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035824_sensex_nifty_sensex_market.jpg" alt="Sectoral performance remained mixed during the week, with heavy selling seen in technology stocks. The Nifty IT index declined more than 8 percent, Nifty Energy and Oil &amp; Gas indices fell around 2 percent each, while the Nifty FMCG index slipped nearly 2 percent. On the other side, the Nifty Media index surged 5 percent, Nifty PSU Bank, Consumer Durables, and Defence indices advanced roughly 3 percent each. Meanwhile, the Nifty Auto gained about 2 percent, and the Nifty Pharma index added around 1 percent for the week." width="1290" height="720" /> Sectoral performance remained mixed during the week, with heavy selling seen in technology stocks. The Nifty IT index declined more than 8 percent, Nifty Energy and Oil &amp; Gas indices fell around 2 percent each, while the Nifty FMCG index slipped nearly 2 percent. On the other side, the Nifty Media index surged 5 percent, Nifty PSU Bank, Consumer Durables, and Defence indices advanced roughly 3 percent each. Meanwhile, the Nifty Auto gained about 2 percent, and the Nifty Pharma index added around 1 percent for the week.

<img class="size-full wp-image-13828229" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035817_nifty_sensex_stocks.jpg" alt="Foreign Institutional Investors (FIIs) turned net sellers during the week after offloading equities in Friday’s session, reversing their buying trend seen in the first four trading sessions. Overall, FIIs sold equities worth Rs 4,019.09 crore during the week. In contrast, Domestic Institutional Investors (DIIs) extended support to the market, with net purchases of Rs 6,883.81 crore" width="1280" height="720" /> Foreign Institutional Investors (FIIs) turned net sellers during the week after offloading equities in Friday’s session, reversing their buying trend seen in the first four trading sessions. Overall, FIIs sold equities worth Rs 4,019.09 crore during the week. In contrast, Domestic Institutional Investors (DIIs) extended support to the market, with net purchases of Rs 6,883.81 crore.

<img class="wp-image-13828225 size-full" src="https://images.moneycontrol.com/static-mcnews/2026/02/20260214035801_market_nifty_sensex.jpg" alt="During the week, Tata Consultancy Services recorded the steepest erosion in market capitalisation, followed by Infosys, HDFC Bank, and Reliance Industries. On the other hand, State Bank of India, Bajaj Finance, and Larsen &amp; Toubro witnessed an increase in their market capitalisation. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)" width="1280" height="720" /> During the week, Tata Consultancy Services recorded the steepest erosion in market capitalisation, followed by Infosys, HDFC Bank, and Reliance Industries. On the other hand, State Bank of India, Bajaj Finance, and Larsen &amp; Toubro witnessed an increase in their market capitalisation. (Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the soles beneficiary.)</dd><dd class="wp-caption-dd">

<img class="size-full wp-image-13631849" src="https://images.moneycontrol.com/static-mcnews/2025/10/20251025043820_rupeegain_dollar.jpg" alt="The Indian rupee ended marginally higher for the second consecutive week, closing at 90.64 per dollar on February 13, compared to 90.66 on February 6. During the week, the domestic currency traded within a range of 90.37 to 90.78." width="1280" height="720" /> The Indian rupee ended marginally higher for the second consecutive week, closing at 90.64 per dollar on February 13, compared to 90.66 on February 6. During the week, the domestic currency traded within a range of 90.37 to 90.78.

Don’t anticipate a long-term structural threat to India’s textile sector, After steep fall, don't try to short IT sector at these levels, Bullish on large banks, auto, chemicals

* Don’t anticipate a long-term structural threat to India’s textile sector
* After steep fall, don't try to short IT sector at these levels
* Bullish on large banks, auto, chemicals

shorts/business/daily-voice-don-t-short-it-after-sharp-fall-bullish-on-banks-auto-chemicals-says-hdfc-tru-s-uniyal

* Don’t anticipate a long-term structural threat to India’s textile sector
* After steep fall, don't try to short IT sector at these levels
* Bullish on large banks, auto, chemicals

HDFC Securities institutional team is currently neutral on IT sector. But "we would not try to short the sector at these levels," said Pranab Uniyal, the Head of HDFC Tru (Investment Advisory) in an interview to Moneycontrol.

His preferred sectors include large banks, auto, chemicals, insurance, real estate and capital goods.

According to him, valuations for the mid and small-caps are still at a significant premium to large-caps as well as their own historical averages.

"While the balance sheets of small caps have improved materially and a revival in earnings is expected for the small-caps in FY27, he maintains near-term preference for large-caps over mid &amp; small-caps, given the better risk-reward and higher margin of safety.

Do you see a major risk for Indian IT companies due to the renewed AI disruption fears that have surfaced again? Does this mean it is better to stay away from the sector for now, or should investors continue accumulating quality stocks during every major decline despite these recurring AI disruption concerns?

This question has been on investors' minds a lot. Indeed, the sell-off in IT companies has been a global phenomenon. Overall, we do expect AI to replace a lot of mundane jobs.

However, Indian IT companies would be important for implementing many of these enterprise-wide solutions and associated activities like integrating AI with legacy systems and training. These projects could present a reasonable revenue opportunity. Our institutional team is currently neutral on the sector. We would not try to short the sector at these levels.

After the EU and US trade deals, do you think expectations of an earnings recovery are supporting market?

The recent trade agreements with the EU and US have acted as a significant tailwind, however, a run of stronger-than-expected corporate earnings performance in Q3FY26 is lending near-term support to domestic equities. Also, the earnings downgrades cycle for Indian equities is moderating and the market is now expecting a new earnings upgrade cycle to begin soon.

Moreover, renewed portfolio buying by the foreign investors has also kept the market sentiment strong. FIIs February net inflows are at $2.1 billion (versus January net outflows of around $4 billion), marking a material turnaround after three months of heavy selling.

Do you believe that at least 15% earnings growth in FY27 cannot be ruled out, especially as tailwinds have started to outweigh the headwinds seen over the past several months?

While our base case for Nifty-50 FY27 earnings growth is at around 12%, an acceleration toward 15% is plausible as structural tailwinds converge. Corporate profits tend to move in-sync with Nominal GDP growth, which is expected to return back to double-digit (10%) in FY27. The earnings momentum will be underpinned by a definitive pivot in credit and consumption cycles.

The banking sector comprising roughly 35% of the Nifty 50, is poised for a sharp rebound as net interest margins (NIMs) normalize. Concurrently, a multi-pronged recovery in consumer spending, driven by a favourable monsoon, GST stimulus, the 2025 budgetary income tax cuts, and declining EMIs, is expected to revitalize domestic demand, significantly benefitting consumption-oriented sectors such as automobiles, consumer discretionary etc.

After the US deal and considering the recent FII data, are FIIs ready to return to India this year? Also, do you see any valuation concerns from their perspective?

The tide appears to be turning. Since, October 2024, the FIIs have offloaded nearly US$33 billion, leading to India underperforming the MSCI EM Index by around 25% (US$) in CY25, the sharpest relative underperformance in three decades. Moreover, global funds are also now at their most significant underweight position on India in recent history.

From a valuation standpoint, the "India Premium" has finally rationalized. Historically, India trades at a premium to the MSCI EM index; currently, that premium sits at around 60%, almost exactly in line with the long-term average. Similarly, the Nifty 50's 12-month forward P/E of ~20x has gravitated toward its 10-year average.

While valuations are not "cheap," time correction in the Indian markets has made large-cap entries significantly more attractive. Our research suggests that FIIs become net buyers when value emerges. We now see pockets of value in the market which may prompt selective buying by FIIs.

Announcement of the India-US trade deal, recovery in corporate earnings, stability in the INR, and capital rotating away from the AI theme could be triggers for better FII interest in India. We expect FII net inflows to be back-ended in 2026, with outflows turning into net inflows as the year progresses.

Do you expect the coming years to be strong for midcap and smallcap stocks, especially after more than a year of consolidation?

CY25 was a year of stark contrast in the equity markets. While large-cap indices delivered a steady 10% return, the small-cap segment struggled, sliding 5-6%. Infact, the pain in the broader Smallcap universe was even more acute, with nearly 60% of stocks falling by more than 30%, highlighting a period of significant volatility.

Despite this, we note, that valuations for the mid and small-caps are still at a significant premium to large-caps as well as their own historical averages. While the balance sheets of small caps have improved materially and a revival in earnings is expected for the small-caps in FY27, we maintain our near-term preference for large-caps over mid &amp; small-caps, given the better risk-reward and higher margin of safety.

Our stance now is that small caps may be bought selectively. This is a substantial change from our stance 18 months ago when we were struggling to find any value.

We prioritize a disciplined, bottom-up selection process focused on robust earnings growth and fundamental resilience.

Do you see any major risks for the textile sector following the US–Bangladesh trade deal?

While the US-Bangladesh trade deal introduces immediate competitive pressure, the risks to India’s textile sector appear manageable rather than existential. The primary concern lies in the "zero-duty" provision for Bangladeshi garments made with US-sourced cotton give Bangladesh a pricing edge in the American market. This could potentially displace Indian raw material exports, with cotton and yarn exports currently valued at around $1.8 billion.

The new US–Bangladesh trade deal has created two main worries for the Indian textile industry. First, Bangladesh can now export clothes to the US duty-free (0% tax) if they use American cotton. Second, because Bangladesh has to use US cotton to get this benefit, they might stop buying as much cotton from India, which hurts Indian farmers and yarn makers.

More importantly, India’s Commerce Minister, Piyush Goyal, clarified that India is set to receive a similar "zero-duty" deal for using US materials in its final trade agreement. This would put Indian exporters back on a level playing field, ensuring they don't lose their competitive edge in the global market.

With Indian firms already diversifying into high-growth markets like the EU, US and UK, we don’t anticipate a long-term structural threat to India’s textile sector.

Are you bullish on the banking, auto, and chemicals sectors?

Yes, we have a positive / overweight stance on the banking, auto, and chemicals sectors. Our preferred sectors include large banks, auto, chemicals, insurance, real estate and capital goods. While we remain underweight on upstream oil &amp; gas and mid-cap IT.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Daily Voice: Don’t short IT after sharp fall; bullish on banks, auto, chemicals, says HDFC Tru’s Uniyal

HDFC Securities institutional team is currently neutral on IT sector. But &quot;we would not try to short the sector at these levels,&quot; said Pranab Uniyal, the Head of HDFC Tru (Investment Advisory) in an interview to Moneycontrol.

His preferred sectors include large banks, auto, chemicals, insurance, real estate and capital goods.

According to him, valuations for the mid and small-caps are still at a significant premium to large-caps as well as their own historical averages.

&quot;While the balance sheets of small caps have improved materially and a revival in earnings is expected for the small-caps in FY27, he maintains near-term preference for large-caps over mid &amp;amp; small-caps, given the better risk-reward and higher margin of safety.

Do you see a major risk for Indian IT companies due to the renewed AI disruption fears that have surfaced again? Does this mean it is better to stay away from the sector for now, or should investors continue accumulating quality stocks during every major decline despite these recurring AI disruption concerns?

This question has been on investors' minds a lot. Indeed, the sell-off in IT companies has been a global phenomenon. Overall, we do expect AI to replace a lot of mundane jobs.

However, Indian IT companies would be important for implementing many of these enterprise-wide solutions and associated activities like integrating AI with legacy systems and training. These projects could present a reasonable revenue opportunity. Our institutional team is currently neutral on the sector. We would not try to short the sector at these levels.

After the EU and US trade deals, do you think expectations of an earnings recovery are supporting market?

The recent trade agreements with the EU and US have acted as a significant tailwind, however, a run of stronger-than-expected corporate earnings performance in Q3FY26 is lending near-term support to domestic equities. Also, the earnings downgrades cycle for Indian equities is moderating and the market is now expecting a new earnings upgrade cycle to begin soon.

Moreover, renewed portfolio buying by the foreign investors has also kept the market sentiment strong. FIIs February net inflows are at $2.1 billion (versus January net outflows of around $4 billion), marking a material turnaround after three months of heavy selling.

Do you believe that at least 15% earnings growth in FY27 cannot be ruled out, especially as tailwinds have started to outweigh the headwinds seen over the past several months?

While our base case for Nifty-50 FY27 earnings growth is at around 12%, an acceleration toward 15% is plausible as structural tailwinds converge. Corporate profits tend to move in-sync with Nominal GDP growth, which is expected to return back to double-digit (10%) in FY27. The earnings momentum will be underpinned by a definitive pivot in credit and consumption cycles.

The banking sector comprising roughly 35% of the Nifty 50, is poised for a sharp rebound as net interest margins (NIMs) normalize. Concurrently, a multi-pronged recovery in consumer spending, driven by a favourable monsoon, GST stimulus, the 2025 budgetary income tax cuts, and declining EMIs, is expected to revitalize domestic demand, significantly benefitting consumption-oriented sectors such as automobiles, consumer discretionary etc.

After the US deal and considering the recent FII data, are FIIs ready to return to India this year? Also, do you see any valuation concerns from their perspective?

The tide appears to be turning. Since, October 2024, the FIIs have offloaded nearly US$33 billion, leading to India underperforming the MSCI EM Index by around 25% (US$) in CY25, the sharpest relative underperformance in three decades. Moreover, global funds are also now at their most significant underweight position on India in recent history.

From a valuation standpoint, the &quot;India Premium&quot; has finally rationalized. Historically, India trades at a premium to the MSCI EM index; currently, that premium sits at around 60%, almost exactly in line with the long-term average. Similarly, the Nifty 50's 12-month forward P/E of ~20x has gravitated toward its 10-year average.

While valuations are not &quot;cheap,&quot; time correction in the Indian markets has made large-cap entries significantly more attractive. Our research suggests that FIIs become net buyers when value emerges. We now see pockets of value in the market which may prompt selective buying by FIIs.

Announcement of the India-US trade deal, recovery in corporate earnings, stability in the INR, and capital rotating away from the AI theme could be triggers for better FII interest in India. We expect FII net inflows to be back-ended in 2026, with outflows turning into net inflows as the year progresses.

Do you expect the coming years to be strong for midcap and smallcap stocks, especially after more than a year of consolidation?

CY25 was a year of stark contrast in the equity markets. While large-cap indices delivered a steady 10% return, the small-cap segment struggled, sliding 5-6%. Infact, the pain in the broader Smallcap universe was even more acute, with nearly 60% of stocks falling by more than 30%, highlighting a period of significant volatility.

Despite this, we note, that valuations for the mid and small-caps are still at a significant premium to large-caps as well as their own historical averages. While the balance sheets of small caps have improved materially and a revival in earnings is expected for the small-caps in FY27, we maintain our near-term preference for large-caps over mid &amp;amp; small-caps, given the better risk-reward and higher margin of safety.

Our stance now is that small caps may be bought selectively. This is a substantial change from our stance 18 months ago when we were struggling to find any value.

We prioritize a disciplined, bottom-up selection process focused on robust earnings growth and fundamental resilience.

Do you see any major risks for the textile sector following the US–Bangladesh trade deal?

While the US-Bangladesh trade deal introduces immediate competitive pressure, the risks to India’s textile sector appear manageable rather than existential. The primary concern lies in the &quot;zero-duty&quot; provision for Bangladeshi garments made with US-sourced cotton give Bangladesh a pricing edge in the American market. This could potentially displace Indian raw material exports, with cotton and yarn exports currently valued at around $1.8 billion.

The new US–Bangladesh trade deal has created two main worries for the Indian textile industry. First, Bangladesh can now export clothes to the US duty-free (0% tax) if they use American cotton. Second, because Bangladesh has to use US cotton to get this benefit, they might stop buying as much cotton from India, which hurts Indian farmers and yarn makers.

More importantly, India’s Commerce Minister, Piyush Goyal, clarified that India is set to receive a similar &quot;zero-duty&quot; deal for using US materials in its final trade agreement. This would put Indian exporters back on a level playing field, ensuring they don't lose their competitive edge in the global market.

With Indian firms already diversifying into high-growth markets like the EU, US and UK, we don’t anticipate a long-term structural threat to India’s textile sector.

Are you bullish on the banking, auto, and chemicals sectors?

Yes, we have a positive / overweight stance on the banking, auto, and chemicals sectors. Our preferred sectors include large banks, auto, chemicals, insurance, real estate and capital goods. While we remain underweight on upstream oil &amp;amp; gas and mid-cap IT.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Sensex and Nifty fell over 1% amid IT sector selloff, Nifty IT index fell 9% this week, largest drop since April 2025, All major sector indices ended in the red on February 13

* Sensex and Nifty fell over 1% amid IT sector selloff
* Nifty IT index fell 9% this week, largest drop since April 2025
* All major sector indices ended in the red on February 13

Indian benchmark indices fell for a second session, led by a sharp IT stock selloff amid AI concerns. Nifty IT dropped 9% this week, its biggest fall since April 2025. All major sectors ended in the red, with nearly 200 stocks hitting 52-week lows.

shorts/business/taking-stock-nifty-below-25-500-sensex-tanks-1-048-pts-it-sell-off-deepens-on-ai-concerns

* Sensex and Nifty fell over 1% amid IT sector selloff
* Nifty IT index fell 9% this week, largest drop since April 2025
* All major sector indices ended in the red on February 13

Indian benchmark indices extended their decline for a second consecutive session on February 13, weighed down by a sharp selloff in IT stocks on third consecutive session amid rising concerns over the impact of artificial intelligence on the sector. The Nifty IT index tumbled 9 percent this week, witnessing biggest weekly fall since April 2025.

At close, the Sensex was down 1,048.16 points or 1.25 percent at 82,626.76, and the Nifty was down 336.10 points or 1.30 percent at 25,471.10.

For the week, BSE Sensex shed 1.1 percent and Nifty index fell 0.9 percent.

Broader markets also witnessed heavy selling, with the Nifty Midcap and Smallcap indices shedding nearly 2 percent each.

Also Read - <a href="https://www.moneycontrol.com/news/business/earnings/mid-small-cap-earnings-show-revenue-strength-but-margin-pressure-in-december-quarter-13826144.html">Mid, small-cap earnings show revenue strength but margin pressure in December quarter</a>

Among the top laggards on the Nifty were Hindalco Industries, Hindustan Unilever, Eternal, Adani Enterprises, and ONGC. On the other side, Bajaj Finance, Eicher Motors, SBI Life Insurance, State Bank of India, and Cipla managed to close in positive territory.

Sectorally, all major indices ended in the red. Energy, Metal, and Realty indices declined 2–3 percent each, while IT, Consumer Durables, FMCG, Telecom, Infra, Auto, Power, PSU, and Oil &amp; Gas indices fell around 1 percent each.

Also Read - <a href="https://www.moneycontrol.com/news/business/commodities/gold-bounces-back-from-near-one-week-low-us-inflation-data-in-focus-13827166.html">Gold bounces back from near one-week low; US inflation data in focus</a>

In stock specific actions, Muthoot Finance shared dropped 11% despite Q3 profit jumps 95%, Hindalco Industries shares fell 6% despite better earnings, ONGC shares declined 3% on posting flat revenue, Transrail Lighting shares price rose 1% on bagging Rs 2,350 crore of domestic EPC orders, Indian Hotels Company shares fell 1% despite strong earnings, Travel Food Services share price shed 5% despite better earnings.

Also Read - <a href="https://www.moneycontrol.com/news/business/markets/ai-jitters-hit-it-stocks-but-fund-managers-stay-the-course-on-sector-holding-for-now-13826152.html">AI jitters hit IT stocks, but fund managers stay the course on sector holding for now</a>

Nearly 200 stocks touched their 52-week low, including Cohance Life, LT Technology, Newgen Software, Firstsource Solutions, Syngene International, KPIT Technologies, Vedant Fashions, Route, Mastek, Tata Technologies, Clean Science, Kansai Nerolac, Poly Medicure, AWL Agri, IGL, TCS, Infosys, Sonata Software, Indian Renewable Energy Development Agency, Oracle Financial Services Software, among others. <a href="https://www.moneycontrol.com/stocks/market-stats/52-week-low-bse/?indexName=BSE%2520500&amp;id=12">Click to View More</a>

Outlook for February 16

Ajit Mishra – SVP, Research, Religare Broking

Markets traded with a negative bias on Friday and remained under pressure for most of the session, with the Nifty slipping sharply as selling in heavyweight technology stocks intensified. After a weak start, the benchmark index moved in a narrow range during the first half, but the decline deepened as the session progressed. It eventually settled near the day’s low to close at 25,471.10. Selling was broad-based, with IT stocks among the top losers, while weakness was also visible in the metal, realty, and FMCG segments.

Investor sentiment weakened as global technology stocks stayed under pressure, reinforcing risk-off behaviour in domestic markets. In addition, the absence of any fresh positive domestic triggers kept the overall mood subdued.

The sharp fall in the IT pack has significantly altered the market tone, and a break below the 25,400 mark could open the door for a move toward the 25,100 gap area. On the upside, the 25,700–26,000 zone is likely to act as a strong resistance band in case of any recovery. Apart from IT, FMCG and realty also appear vulnerable to further declines, while banking, auto, energy, and select metal stocks may continue to show relatively better strength. Participants should align their positions accordingly and keep position sizes under control in light of the renewed weakness.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty opened gap-down, reflecting early weakness in IT stocks following negative cues from the US markets. At the end, the Nifty ended the session significantly lower. India VIX also moved back above its 200DMA, indicating rising fear among the market participants.

From a technical standpoint, the setup has turned relatively cautious, with the index slipping below its 20DMA for the first time in the past few sessions. Additionally, it has breached the 38.2% Fibonacci retracement of the prior upmove from 24,571 to 26,341.

With the index closing below the key support level of 25,500, the near-term bias appears weak, and there is potential for a decline toward the 25,000 mark in the short term. On the upside, immediate resistance is seen around 25,800.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Taking Stock: Nifty below 25,500, Sensex tanks 1,048 pts; IT sell-off deepens on AI concerns

Indian benchmark indices extended their decline for a second consecutive session on February 13, weighed down by a sharp selloff in IT stocks on third consecutive session amid rising concerns over the impact of artificial intelligence on the sector. The Nifty IT index tumbled 9 percent this week, witnessing biggest weekly fall since April 2025.

At close, the Sensex was down 1,048.16 points or 1.25 percent at 82,626.76, and the Nifty was down 336.10 points or 1.30 percent at 25,471.10.

For the week, BSE Sensex shed 1.1 percent and Nifty index fell 0.9 percent.

Broader markets also witnessed heavy selling, with the Nifty Midcap and Smallcap indices shedding nearly 2 percent each.

Also Read - Mid, small-cap earnings show revenue strength but margin pressure in December quarter

Among the top laggards on the Nifty were Hindalco Industries, Hindustan Unilever, Eternal, Adani Enterprises, and ONGC. On the other side, Bajaj Finance, Eicher Motors, SBI Life Insurance, State Bank of India, and Cipla managed to close in positive territory.

Sectorally, all major indices ended in the red. Energy, Metal, and Realty indices declined 2–3 percent each, while IT, Consumer Durables, FMCG, Telecom, Infra, Auto, Power, PSU, and Oil &amp;amp; Gas indices fell around 1 percent each.

Also Read - Gold bounces back from near one-week low; US inflation data in focus

In stock specific actions, Muthoot Finance shared dropped 11% despite Q3 profit jumps 95%, Hindalco Industries shares fell 6% despite better earnings, ONGC shares declined 3% on posting flat revenue, Transrail Lighting shares price rose 1% on bagging Rs 2,350 crore of domestic EPC orders, Indian Hotels Company shares fell 1% despite strong earnings, Travel Food Services share price shed 5% despite better earnings.

Also Read - AI jitters hit IT stocks, but fund managers stay the course on sector holding for now

Nearly 200 stocks touched their 52-week low, including Cohance Life, LT Technology, Newgen Software, Firstsource Solutions, Syngene International, KPIT Technologies, Vedant Fashions, Route, Mastek, Tata Technologies, Clean Science, Kansai Nerolac, Poly Medicure, AWL Agri, IGL, TCS, Infosys, Sonata Software, Indian Renewable Energy Development Agency, Oracle Financial Services Software, among others. Click to View More

Outlook for February 16

Ajit Mishra – SVP, Research, Religare Broking

Markets traded with a negative bias on Friday and remained under pressure for most of the session, with the Nifty slipping sharply as selling in heavyweight technology stocks intensified. After a weak start, the benchmark index moved in a narrow range during the first half, but the decline deepened as the session progressed. It eventually settled near the day’s low to close at 25,471.10. Selling was broad-based, with IT stocks among the top losers, while weakness was also visible in the metal, realty, and FMCG segments.

Investor sentiment weakened as global technology stocks stayed under pressure, reinforcing risk-off behaviour in domestic markets. In addition, the absence of any fresh positive domestic triggers kept the overall mood subdued.

The sharp fall in the IT pack has significantly altered the market tone, and a break below the 25,400 mark could open the door for a move toward the 25,100 gap area. On the upside, the 25,700–26,000 zone is likely to act as a strong resistance band in case of any recovery. Apart from IT, FMCG and realty also appear vulnerable to further declines, while banking, auto, energy, and select metal stocks may continue to show relatively better strength. Participants should align their positions accordingly and keep position sizes under control in light of the renewed weakness.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty opened gap-down, reflecting early weakness in IT stocks following negative cues from the US markets. At the end, the Nifty ended the session significantly lower. India VIX also moved back above its 200DMA, indicating rising fear among the market participants.

From a technical standpoint, the setup has turned relatively cautious, with the index slipping below its 20DMA for the first time in the past few sessions. Additionally, it has breached the 38.2% Fibonacci retracement of the prior upmove from 24,571 to 26,341.

With the index closing below the key support level of 25,500, the near-term bias appears weak, and there is potential for a decline toward the 25,000 mark in the short term. On the upside, immediate resistance is seen around 25,800.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

All-round Selloff Drags Nifty To 25,500; Metals Melt, IT Extends Losses | Closing Bell Live

Sensex and Nifty fell over 1 percent amid IT stock sell-off, IT index dropped 5 percent on AI disruption fears, All 16 major sectors declined; market volatility increased

* Sensex and Nifty fell over 1 percent amid IT stock sell-off
* IT index dropped 5 percent on AI disruption fears
* All 16 major sectors declined; market volatility increased

Sensex and Nifty fell over 1% amid heavy IT stock sell-off, weak global cues, AI disruption fears, and rising volatility. All sectors declined, with metals down 3%. The rupee weakened, and experts expect continued bearish momentum unless Nifty rebounds.

shorts/business/sensex-down-800-pts-nifty-below-25-550-it-sell-off-among-key-factors-behind-market-decline

* Sensex and Nifty fell over 1 percent amid IT stock sell-off
* IT index dropped 5 percent on AI disruption fears
* All 16 major sectors declined; market volatility increased

The domestic benchmark indices Sensex and Nifty settled sharply lower by more than 1 percent on Friday following a highly volatile session, weighed down by weak global cues ahead of the upcoming US inflation data.

Renewed AI-driven disruption fears weighed on risk appetite, with markets worrying that Indian IT firms dependent on the labour arbitrage model may face tougher competitive pressure than their Nasdaq peers, said Vinod Nair, Head of Research at Geojit Investments.

This cautious tone extended across the broader market, pulling all major indices into negative territory, with most sectors closing in the red.

Metal stocks saw profit-booking amid a stronger dollar index, as reports of Russia’s return to the US-dollar settlement system heightened expectations of potential sanctions relief and raised concerns over weaker realisations for metal companies. Fears of a slowdown in IT hiring, hurting housing demand in major cities across India, dented sentiment in the realty sector.

In a volatile session, the Sensex tumbled 1,048.16 points, or 1.25 percent, to close at 82,626.76. During the day, the benchmark tanked 1,140.37 points, or 1.36 percent, to hit an intraday low of 82,534.55.

The Nifty plunged 336.10 points, or 1.3 percent, to settle at 25,471.10. In the intraday trade, it slumped 362.9 points, or 1.4 percent, to hit a low of 25,444.30.

The selloff extended to broader markets as well, with the Nifty smallcap100 index and the Nifty midcap100 falling 1.79 percent and 1.71 percent, respectively.

<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/infosys/IT">Infosys</a>, Hindalco Industries and ETERNAL were among the key laggards in the Nifty50 pack, declining up to 4 percent, while <a href="https://www.moneycontrol.com/india/stockpricequote/finance-nbfc/bajajfinance/BAF">Bajaj Finance</a> and Apollo Hospitals Enterprise gained up to 1 percent. Market breadth was negative as about 948 shares advanced, 2561 shares declined and 136 shares unchanged.
<h3>Key factors behind market decline</h3>
1) IT sell-off: The <a href="https://www.moneycontrol.com/news/business/markets/it-rout-extends-to-third-straight-day-infosys-tcs-other-it-stocks-fall-up-to-6-here-s-why-13826774.html" target="_blank">IT index fell for the third straight session</a>, declining about 5 percent intraday on fears of AI-driven automation impacting the sector’s labour-intensive business model. The sectoral index had slipped 5.5 percent on February 12. However, it recovered sharply from the day's low to settle at 1.4 percent lower.

"Sentiment gains from the US-India trade deal have faded as renewed AI-driven disruption fears weigh on risk appetite," Nair added.

Heavyweights Infosys, Tata Consultancy Services, HCL Technologies and Tech Mahindra were among the major laggards.

The IT index is down 11.4 percent this week and has lost 16.6 percent so far in 2026, surpassing the 12.6 percent drop in the whole of last year.

2) Weak global cues: In Asian markets, Hong Kong's Hang Seng benchmark, Shanghai's SSE Composite index, Japan's Nikkei 225 index and South Korea's Kospi ended in the negative territory.

European markets are trading on a mixed note in mid-session deals. The US equities market ended up to 2 percent lower on Thursday.

"Wall Street indices fell sharply on Thursday, with the technology-heavy Nasdaq slumping 2 percent, as investors intensified their sell-off of tech shares and exited transport stocks amid worries about artificial intelligence disruption," Devarsh Vakil, Head of Prime Research, HDFC Securities, said.
<h3><a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-weak-start-us-asian-markets-fall-4-liveblog-13826351.html" target="_blank">Stock Market LIVE Updates</a></h3>
3) Rise in volatility: The India VIX, the market’s fear gauge, rose more than 15 percent to 13.50 level, indicating higher uncertainty and risk perception among investors, which typically leads to cautious trading and selling pressure.

"Markets have fallen into a turbulent phase which will cause some panic among investors even while offering opportunities," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

He added the sell-off in IT stocks, a major profit pool of India Inc, was weighing on the market and the full impact of the recent AI-related shock on the sector was yet to be ascertained.

4) Rupee weakens: The rupee consolidated in a narrow range and settled for the day 3 paise lower at 90.64 against the US dollar on Friday, tracking the strength of the American currency in the overseas market and a negative trend in domestic equities. Forex traders said rupee traded in a narrow range with a weakening bias as a firm dollar limited the upside for emerging market currencies including the rupee.

5) Crude rises: Brent crude, the global oil benchmark, rose 0.32 percent to USD 67.81 per barrel. Higher crude prices are seen as negative for India, which is a major importer of oil, as they can widen the trade deficit and add to inflationary pressures.
<h3>Technical outlook</h3>
Rupak De, Senior Technical Analyst at LKP Securities, said "the Nifty opened gap-down, reflecting early weakness in IT stocks following negative cues from the US markets. At the end, the Nifty ended the session significantly lower. India VIX also moved back above its 200DMA, indicating rising fear among the market participants.

From a technical standpoint, the setup has turned relatively cautious, with the index slipping below its 20DMA for the first time in the past few sessions. Additionally, it has breached the 38.2% Fibonacci retracement of the prior upmove from 24,571 to 26,341.

With the index closing below the key support level of 25,500, the near-term bias appears weak, and there is potential for a decline toward the 25,000 mark in the short term. On the upside, immediate resistance is seen around 25,800."

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

Sensex settles 1,000 pts lower, Nifty ends below 25,500: Weak global cues among key factors behind market decline

Stock Market Crash: Sensex settles 1,000 pts lower, Nifty ends below 25,500: Weak global cues among key factors behind market decline

The domestic benchmark indices Sensex and Nifty settled sharply lower by more than 1 percent on Friday following a highly volatile session, weighed down by weak global cues ahead of the upcoming US inflation data.

Renewed AI-driven disruption fears weighed on risk appetite, with markets worrying that Indian IT firms dependent on the labour arbitrage model may face tougher competitive pressure than their Nasdaq peers, said Vinod Nair, Head of Research at Geojit Investments.

This cautious tone extended across the broader market, pulling all major indices into negative territory, with most sectors closing in the red.

Metal stocks saw profit-booking amid a stronger dollar index, as reports of Russia’s return to the US-dollar settlement system heightened expectations of potential sanctions relief and raised concerns over weaker realisations for metal companies. Fears of a slowdown in IT hiring, hurting housing demand in major cities across India, dented sentiment in the realty sector.

In a volatile session, the Sensex tumbled 1,048.16 points, or 1.25 percent, to close at 82,626.76. During the day, the benchmark tanked 1,140.37 points, or 1.36 percent, to hit an intraday low of 82,534.55.

The Nifty plunged 336.10 points, or 1.3 percent, to settle at 25,471.10. In the intraday trade, it slumped 362.9 points, or 1.4 percent, to hit a low of 25,444.30.

The selloff extended to broader markets as well, with the Nifty smallcap100 index and the Nifty midcap100 falling 1.79 percent and 1.71 percent, respectively.

Infosys, Hindalco Industries and ETERNAL were among the key laggards in the Nifty50 pack, declining up to 4 percent, while Bajaj Finance and Apollo Hospitals Enterprise gained up to 1 percent. Market breadth was negative as about 948 shares advanced, 2561 shares declined and 136 shares unchanged.
Key factors behind market decline
1) IT sell-off: The IT index fell for the third straight session, declining about 5 percent intraday on fears of AI-driven automation impacting the sector’s labour-intensive business model. The sectoral index had slipped 5.5 percent on February 12. However, it recovered sharply from the day's low to settle at 1.4 percent lower.

&quot;Sentiment gains from the US-India trade deal have faded as renewed AI-driven disruption fears weigh on risk appetite,&quot; Nair added.

Heavyweights Infosys, Tata Consultancy Services, HCL Technologies and Tech Mahindra were among the major laggards.

The IT index is down 11.4 percent this week and has lost 16.6 percent so far in 2026, surpassing the 12.6 percent drop in the whole of last year.

2) Weak global cues: In Asian markets, Hong Kong's Hang Seng benchmark, Shanghai's SSE Composite index, Japan's Nikkei 225 index and South Korea's Kospi ended in the negative territory.

European markets are trading on a mixed note in mid-session deals. The US equities market ended up to 2 percent lower on Thursday.

&quot;Wall Street indices fell sharply on Thursday, with the technology-heavy Nasdaq slumping 2 percent, as investors intensified their sell-off of tech shares and exited transport stocks amid worries about artificial intelligence disruption,&quot; Devarsh Vakil, Head of Prime Research, HDFC Securities, said.
Stock Market LIVE Updates
3) Rise in volatility: The India VIX, the market’s fear gauge, rose more than 15 percent to 13.50 level, indicating higher uncertainty and risk perception among investors, which typically leads to cautious trading and selling pressure.

&quot;Markets have fallen into a turbulent phase which will cause some panic among investors even while offering opportunities,&quot; VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

He added the sell-off in IT stocks, a major profit pool of India Inc, was weighing on the market and the full impact of the recent AI-related shock on the sector was yet to be ascertained.

4) Rupee weakens: The rupee consolidated in a narrow range and settled for the day 3 paise lower at 90.64 against the US dollar on Friday, tracking the strength of the American currency in the overseas market and a negative trend in domestic equities. Forex traders said rupee traded in a narrow range with a weakening bias as a firm dollar limited the upside for emerging market currencies including the rupee.

5) Crude rises: Brent crude, the global oil benchmark, rose 0.32 percent to USD 67.81 per barrel. Higher crude prices are seen as negative for India, which is a major importer of oil, as they can widen the trade deficit and add to inflationary pressures.
Technical outlook
Rupak De, Senior Technical Analyst at LKP Securities, said &quot;the Nifty opened gap-down, reflecting early weakness in IT stocks following negative cues from the US markets. At the end, the Nifty ended the session significantly lower. India VIX also moved back above its 200DMA, indicating rising fear among the market participants.

From a technical standpoint, the setup has turned relatively cautious, with the index slipping below its 20DMA for the first time in the past few sessions. Additionally, it has breached the 38.2% Fibonacci retracement of the prior upmove from 24,571 to 26,341.

With the index closing below the key support level of 25,500, the near-term bias appears weak, and there is potential for a decline toward the 25,000 mark in the short term. On the upside, immediate resistance is seen around 25,800.&quot;

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

10 out of 18 years BSE Metal has given negative returns in February.

Type	R1	R2	R3	PP	S1	S2	S3
Classic	39,635.71	40,145.83	40,453.99	39,327.55	38,817.43	38,509.27	37,999.15
Fibonacci	39,640.14	39,833.25	40,145.83	39,327.55	39,014.97	38,821.86	38,509.27
Camarilla	39,200.59	39,275.60	39,350.61	39,327.55	39,050.57	38,975.56	38,900.55

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