Nifty 50 Falls 0.57%, Snaps 4-Day Rally Amid 5.51% Slide in IT Index

Market Update at 04:04 PM: On Thursday, February 12, India’s key equity benchmarks ended in the red, dragged lower by heavy selling in information technology stocks amid fading hopes of near-term U.S. rate cuts and rising concerns over artificial intelligence-led disruption.

After opening lower, the Nifty 50 slipped to the day’s low of 25,750 and traded in a 154.30-point range. Volatility remained stable, with India VIX rising 1.45 per cent during the session.

At the close, the Nifty 50 declined 146.65 points, or 0.57 per cent, to settle at 25,807.20. The Sensex fell 558.72 points, or 0.66 per cent, to 83,674.92. The Nifty 50 snapped its four-day winning streak, while the Sensex extended its previous losses. The Nifty Bank ended largely flat with a marginal loss of 0.01 per cent.

The Nifty IT index emerged as the top sectoral loser, tumbling 5.51 per cent and extending its recent decline. The sell-off followed stronger-than-expected U.S. jobs data for January, which dampened expectations of near-term rate cuts. After losing 12.6 per cent in 2025, the index has fallen about 12 per cent so far in 2026, amid intensifying fears that artificial intelligence-driven disruption could weigh on the earnings of software services companies.

On the sectoral front, 9 out of 11 key indices closed in negative territory. Broader markets also witnessed selling pressure, with the Nifty Midcap index declining 0.47 per cent and the Nifty Smallcap index falling 0.64 per cent.

Among individual stocks, Hindustan Unilever fell 2.16 per cent following its Q3FY26 earnings announcement, while LG Electronics India dropped 3.6 per cent on an earnings slump. IT majors Coforge, Oracle Financial Services Software, TCS, Infosys, Tech Mahindra and LTI Mindtree declined over 5 per cent, tracking AI-related concerns and the stronger-than-expected U.S. jobs data.

Despite the broader weakness, the Nifty Financial Services index extended its rally for a fifth straight session, supported by gains in Muthoot Finance and Bajaj Finance.

In terms of index contribution, ICICI Bank added 37.44 points to the Nifty 50, Bajaj Finance contributed 17.44 points, and State Bank of India added 8.64 points. On the downside, Infosys dragged the index by 66.22 points, Tata Consultancy Services weighed by 35.82 points, and Reliance Industries pulled it down by 29.31 points.

Market breadth remained negative. Out of 3,257 stocks traded on the NSE, 1,151 advanced, 2,008 declined, and 98 remained unchanged. A total of 77 stocks touched their 52-week highs, while 77 hit their 52-week lows. Additionally, 70 stocks were locked in Upper Circuits, whereas 48 stocks were in Lower Circuits.

Market Update at 12:18 PM: Indian equity benchmarks slipped on Wednesday, weighed down by heavy selling in information technology stocks amid fading hopes of near-term U.S. rate cuts and rising concerns over AI-led disruption.

At 12:09 IST, the Nifty 50 was trading at 25,825.30, down 128.55 points or 0.50 per cent. The BSE Sensex stood at 83,757.63, lower by 476.01 points or 0.57 per cent.

Eleven out of the eight sectoral indices were in the red. The Nifty IT index fell 4.6 per cent, extending its weak trend. The IT pack has declined 11.6 per cent so far in 2026 after sliding 12.6 per cent in 2025. Stronger U.S. jobs data for January dented expectations of near-term rate cuts, pressuring U.S.-exposed Indian IT companies. The data also dimmed the outlook for discretionary U.S. tech spending over the next few quarters.

Broader markets also reflected a risk-off mood. The Nifty Smallcap index and the Nifty Midcap index each eased 0.8 per cent.

Elsewhere in Asia, technology stocks advanced, led by Semiconductor and hardware names such as Samsung and SK Hynix. 

Among individual stocks, Hindustan Unilever dropped 3 per cent, while LG Electronics India declined 3.6 per cent following an earnings slump.

Market Update at 10:14 AM: Stock markets opened lower on Thursday, weighed down by selling pressure in information technology (IT) stocks. The BSE Sensex declined 409 points, or 0.49 per cent, to 83,825, while the Nifty50 slipped 113 points, or 0.44 per cent, to 25,841.

More than 30 stocks on the Nifty50 were trading in the red. Infosys led the losses, falling 3.5 per cent. Other major laggards included Tech Mahindra, HCL Tech, TCS, Wipro, Eternal, IndiGo, M&M, SBI Life, HDFC Life, Hindalco, and Titan Company.

On the positive side, ONGC, ICICI Bank, NTPC, Eicher Motors, Axis Bank, Power Grid, Coal India, and HUL provided some support to the indices.

In the broader market, selling pressure was more pronounced. The Nifty MidCap index dropped 0.78 per cent, while the Nifty SmallCap index fell 0.98 per cent.

Sectorally, the Nifty IT index was the worst performer, tumbling 3.75 per cent. The Nifty Pharma and PSU Bank indices edged lower by 0.5 per cent each. In contrast, the Nifty Private Bank and Nifty FMCG indices managed modest gains of 0.1 per cent each.

Pre-Market Update at 7:51 AM: The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Thursday, February 12, 2026, tracking mixed global cues. As of 7:14 AM, the GIFT Nifty was trading near the 25,990 mark, up 18 points from its previous close, indicating a muted start for domestic equities. Markets may gradually move higher, with stock-specific action expected as the Q3 earnings season nears its end.

Several major companies are set to announce their Q3 results on Thursday, including Hindustan Unilever, Oil and Natural Gas Corporation (ONGC), Hindustan Aeronautics, Coal India, Hindalco Industries, Muthoot Finance, Lupin, Indian Hotels Company, Bharat Forge, Biocon, Abbott India and IRCTC – Indian Railway Catering & Tourism Corporation. Federal Bank will be in focus after the RBI approved ICICI Prudential AMC to acquire up to 9.95 per cent stake in the bank. Patanjali Foods reported a 60 per cent year-on-year rise in Q3 profit, while revenue increased 16.5 per cent YoY. IRCON International posted a 16 per cent YoY rise in Q3 profit.

The Government of India will release January retail inflation data on February 12 under the new Consumer Price Index (CPI) series with base year 2024. The updated series will include 358 items, covering airfares, e-commerce prices and OTT subscriptions, offering a broader view of consumer expenses. The inflation print will play a key role in shaping the Reserve Bank of India’s policy outlook.

In the U.S., non-farm payroll data showed that 130,000 new jobs were added in January, significantly higher than expectations of 70,000. December’s job growth was revised down to 48,000. The unemployment rate improved to 4.3 per cent from 4.4 per cent, indicating a stable labour market at the start of 2026.

India’s net direct Tax collection rose 9.4 per cent to Rs 19.44 lakh crore so far this financial year till February 10. Gross collection increased 4.09 per cent to Rs 22.78 lakh crore. The government expects total direct tax collection to reach Rs 24.84 lakh crore for FY2025–26.

On February 11, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth Rs 943.81 crore. Domestic Institutional Investors (DIIs) sold shares worth Rs 125.36 crore during the same session. FIIs have been net buyers for four consecutive trading sessions and have invested Rs 5,913.43 crore so far in February.

On Wednesday, Indian equities ended almost flat after a volatile session, as investors booked profits following strong gains in the previous three days. The Sensex slipped 40 points, or 0.05 per cent, to close at 84,233.64, while the Nifty 50 edged up 19 points, or 0.07 per cent, to settle at 25,953.85.

Asian markets traded higher, with Japan’s Nikkei hitting a record high. However, Wall Street closed lower on Wednesday following the stronger-than-expected U.S. jobs report. The Dow Jones fell 66.74 points, or 0.13 per cent, to 50,121.40. The S&P 500 ended almost unchanged at 6,941.47, while the Nasdaq Composite declined 0.16 per cent to 23,066.47. Nvidia rose 0.78 per cent and Tesla gained 0.80 per cent, while Microsoft fell 2.15 per cent and Amazon declined 1.31 per cent. Exxon Mobil climbed 2.6 per cent and Smurfit Westrock surged 9.9 per cent.

U.S. House lawmakers voted 219–211 to reject Donald Trump’s tariffs on Canadian goods, though the measure still requires approval from the Senate and the President. U.S. Treasury yields rose after the jobs data, with the benchmark 10-year yield increasing to 4.17 per cent. The two-year Treasury yield climbed six basis points to 3.51 per cent from 3.45 per cent.

Gold slipped to around USD 5,050 per ounce on Thursday, trimming previous gains as expectations of early Federal Reserve rate cuts eased. Silver dropped more than 2 per cent to about USD 82 per ounce. Crude oil prices extended gains amid rising tensions between Iran and the U.S., with WTI crude trading at USD 64.70 per barrel. Overall, domestic markets are expected to remain cautious ahead of the January CPI inflation data, while global cues and commodity price movements will influence investor sentiment.

For today, Sammaan Capital and SAIL will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.