Indian markets end lower as IT weakness weighs; banks offer partial support
Indian equity markets closed lower on Thursday, February 12, 2026, as sustained selling pressure in IT stocks dragged benchmark indices down. The Nifty 50 ended near 25,807, while the Sensex slipped 559 points to around 83,675, with both indices declining close to 0.7% for the session.
Although banking stocks helped limit sharper losses, the overall tone remained cautious through the day.
IT sector continues to lead the decline
The technology sector remained under pressure throughout the session. The Nifty IT index fell close to 5% intraday, finishing the day sharply lower. Major IT names including Infosys, TCS, Tech Mahindra and Persistent Systems declined by 4–6%, extending losses for a third consecutive session.
Investor sentiment in the sector remained subdued amid concerns over earnings visibility, as rapid developments in artificial intelligence and softer global tech cues continue to weigh on outlook expectations.
Weakness spreads beyond IT
Selling was not restricted to technology stocks alone. Financials and select auto stocks also traded lower during the session, though losses in these segments were relatively moderate compared to the IT space. The broader participation in declines kept risk sentiment subdued across the market.
RBI intervention adds to early volatility
The rupee witnessed volatility in early trade after briefly weakening toward ₹90.70 per US dollar. As per dealer commentary, the Reserve Bank of India intervened by selling dollars to stabilise the currency.
While such intervention helped contain currency weakness, it contributed to short-term volatility across equity and interest-rate-sensitive stocks.
Banking stocks show relative stability
In contrast to the IT-led weakness, banking stocks displayed relative resilience. The Nifty Bank index hovered around flat levels and ended marginally lower, helping cushion the overall market decline.
State Bank of India remained in focus following its strong Q3 earnings performance and its move ahead of TCS in market capitalisation, becoming India’s fourth-largest listed company for the first time in nearly 15 years.
Broader markets underperform as breadth weakens
The broader market continued to underperform frontline indices. The BSE SmallCap index declined 2.19%, while the BSE MidCap index fell 1.56%.
Market breadth stayed negative for most of the session, indicating that selling pressure extended beyond a handful of large stocks. The weakness appeared driven largely by profit booking after recent gains, rather than any single adverse development.
Commodities update
Gold and silver prices in India declined sharply on February 12, giving up a part of the previous session’s gains. Both precious metals were trading lower by close to 1% during the session.
Basra Heavy crude oil rose over 2%, supported by renewed Middle East tensions.
Market takeaway
The session reflected a broad-based corrective phase led by IT stocks, with weakness visible across multiple sectors. Global-facing segments continue to face pressure amid evolving AI-related concerns and global demand uncertainty, while domestic-facing areas such as banking remain relatively stable.
Other Major Headlines
- Debt-oriented mutual funds saw net inflows in January, reversing two straight months of outflows. The shift is being attributed to year-end fund deployment and renewed investor interest in fixed-income instruments.
- India is moving ahead with plans to strengthen its air defence capabilities, with preparations underway for the acquisition of 114 additional Rafale fighter jets.
- India’s retail inflation eased to 2.75% in January, as changes in the CPI basket increased the weight of housing and services components.
- The United States is looking to scale up defence exports to India, positioning the country as a key strategic partner in the region.
- Aditya Birla Sun Life Mutual Fund launched its MSCI India ETF, open for subscription from February 12 to 16 with a minimum investment of ₹5,000 and no lock-in period & exit load.
Source: Economic Times, Moneycontrol, Livemint, Perplexity Finance
