Indian Stock Market Falls Over 500 Points Amid IT Selloff – Market Wrap 12 February 2026

Indian equity markets ended the session on a weak note amid global uncertainty, IT sector pressure, and cautious investor sentiment influenced by US macroeconomic data.
Indian Equity Market – Closing Numbers

• Sensex: 83,675 ▼ 559 points
• Nifty 50: 25,807 ▼ 147 points
• Bank Nifty: 56,210 ▼ 118 points
• Nifty IT: Down more than 5% (major drag on indices)
• Midcap Index: Down ~1.2%
• Smallcap Index: Down ~1.5%

Intraday Movement

• Markets opened flat to slightly negative following weak global cues.
• During mid-session, heavy selling emerged in IT stocks after global brokerage houses revised growth outlook for tech spending.
• Around 1:30 PM, indices attempted recovery supported by selective buying in banking and FMCG stocks.
• However, fresh selling in the last hour of trade dragged markets to day’s low levels.
• Nearly ₹2.8 lakh crore of investor wealth was wiped out in today’s session.

Sector-Wise Performance
Top Losers:

• IT (strong selloff)
• Technology services
• Select midcap growth stocks

Relatively Stable:

• FMCG
• Pharma
• Some PSU banks

Global Market Influence
US Market Cues

• Stronger-than-expected US jobs data reduced hopes of early Federal Reserve rate cuts.
• Bond yields in the US moved higher.
• Nasdaq futures indicated weakness due to pressure on technology stocks.

Asian Markets

• Mixed performance.
• Japan’s Nikkei remained relatively stable.
• Chinese markets showed cautious trading due to weak manufacturing data.
• Global sentiment remained risk-off, impacting emerging markets including India.

Commodities Market – Closing Snapshot

• Gold: ₹66,450 per 10 grams (volatile, slight recovery as safe-haven buying emerged)
• Silver: ₹74,200 per kg (marginal decline)
• Crude Oil (Brent): $84 per barrel (firm due to geopolitical tensions)
• WTI Crude: Around $79 per barrel

Commodity Update Between Trades:

• Oil prices strengthened during European trading hours after supply concerns resurfaced.
• Gold initially fell in early trade but recovered slightly as equity markets weakened.

Currency & Bond Market

• Indian Rupee: ₹90.59 per USD (slightly stronger compared to previous close)
• 10-Year Government Bond Yield: Inched higher following global yield movement.
• Bond yields rising globally continue to pressure equity valuations, particularly growth stocks.

Mutual Fund Market Update

• SIP inflows remain steady despite market volatility.
• Large-cap and flexi-cap funds witnessed mild pressure due to heavyweights declining.
• Sectoral funds, especially IT-focused funds, saw NAV correction.
• Debt funds gaining slight interest amid equity volatility.

Investor Behavior:

• Retail investors continued SIP investments.
• Some profit booking observed in thematic funds.
• Long-term investors advised to maintain discipline rather than reacting to short-term volatility.

Wealth Management & Institutional Activity

• FIIs were net sellers in the cash market.
• DIIs provided partial support by buying select banking and defensive stocks.
• HNI investors are shifting allocation toward balanced advantage funds and hybrid strategies.

Wealth managers are advising:

• Maintain 60–70% core allocation in diversified equity.
• Increase allocation to gold (5–10%) as hedge.
• Avoid panic exits from quality portfolios.

Major Indian Market News Today

• IT sector outlook downgraded by global brokerage citing slower client spending in US.
• Government officials hinted at continued infrastructure push in upcoming budget allocation follow-ups.
• Banking sector remains stable ahead of credit growth data release.
• Market participants awaiting inflation data and global central bank commentary.

Key Global Developments

• US Fed officials indicated that rate cuts will depend strictly on inflation trajectory.
• Oil supply concerns resurfaced due to geopolitical developments.
• Asian manufacturing numbers showed moderate slowdown.

Market Outcome & Investor Takeaway

• Market sentiment remains cautious.
• Technology stocks are facing valuation correction.
• Defensive sectors showing relative strength.
• Volatility is likely to continue in the near term.

Strategic View:
✔ Long-term investors should continue SIP.
 ✔ Avoid overexposure to single sector themes.
 ✔ Keep liquidity ready for staggered buying.
 ✔ Diversification remains key in an uncertain global environment.