Market Snapshot

The Indian equity markets faced a turbulent session on Thursday, February 12, 2026, ending a multi-day winning streak. The BSE Sensex plummeted 558.72 points, or 0.66%, to close at 83,674.92. Similarly, the NSE Nifty 50 shed 146.65 points, or 0.57%, to settle at 25,807.20. The session was defined by a massive "IT bloodbath," with the Nifty IT index crashing over 5.5% as investors reacted to fresh concerns regarding AI-led disruptions in the traditional software services model.

While the benchmarks struggled, the financial sector provided a silver lining. The Nifty Financial Services index managed a modest gain of 0.38%, supported by strong performances from heavyweights like Bajaj Finance and ICICI Bank.

Institutional Flows: Cash Market

According to provisional data from the stock exchanges for February 12, 2026, institutional activity remained cautiously positive despite the sharp correction in index prices.

• Foreign Institutional Investors (FIIs) were net buyers in the cash segment, pumping in ₹108.42 crore.
• Domestic Institutional Investors (DIIs) also supported the market as net buyers, with a net inflow of ₹276.85 crore.

The relatively small magnitude of institutional buying suggests that the day's sharp price decline was largely driven by retail panic and algorithmic selling in the technology sector rather than a massive institutional exit from the broader Indian market.

Derivatives Market Activity

Volatility was heightened due to the weekly expiry of Sensex futures and options contracts. The India VIX, often referred to as the "fear gauge," rose by 1.53% to settle at 11.73, reflecting increased nervousness among traders.

• Nifty Options: Significant Call writing was observed at the 25,900 and 26,000 strikes, suggesting these levels will act as stiff resistance in the near term.
• Sectoral Positioning: Drastic long unwinding was evident in IT futures, while select banking counters saw fresh long positions as investors rotated capital into value-oriented financial stocks.

Key Drivers and Outlook

The primary catalyst for the day's decline was a global selloff in technology stocks, fueled by rising fears that AI startups are rapidly eating into the market share of established IT services firms. Additionally, stronger-than-expected jobs data from the United States dampened hopes for an early interest rate cut by the Federal Reserve, leading to a "risk-off" sentiment globally.

Looking ahead, the market is expected to remain in a consolidation phase. Analysts suggest that:

• The Nifty 50 has immediate support at the 25,700–25,750 zone; a breach below this could lead to further testing of the 25,500 level.
• Resistance remains firm at the 25,950–26,000 mark, and a sustained close above this is required to regain bullish momentum.
• Investors will closely monitor the remaining Q3 earnings reports and upcoming US inflation data for further direction.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: FII DII Stock Market Institutional Investors Nifty Sensex

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