Equity benchmarks endures sharp sell-off

Indian equity benchmarks endured a sharp sell-off on February 13, 2026, with the Nifty 50 closing below the 25,500 mark at 25,471.10, down 336 points or 1.3%, while the BSE Sensex tumbled 1,048 points (1.25%) to settle at 82,626.76. The decline marked the second straight session of heavy losses, primarily driven by a relentless rout in IT stocks amid escalating fears of AI-led disruption in the sector. 

The Nifty IT index extended its slide, falling around 1.4-4% intraday before closing lower, contributing to an 8-9% weekly drop—the steepest in recent years—and erasing tens of billions in market value. Broader market sentiment remained weak, with an advance-decline ratio heavily skewed toward declines (around 1,300 advancing vs. 2,800 declining stocks). The India VIX surged significantly, reflecting heightened volatility. 

Despite the benchmark weakness, midcap stocks showed relative resilience and outperformed, posting marginal gains in several pockets. Exporters in textiles and allied sectors, including Gokaldas Exports, KPR Mill, Vardhman Textiles, and Apex Frozen Foods, rallied over 5% amid a green day for the segment. Key outperformers included Engineers India, which surged up to 13-14% after reporting stellar Q3 FY26 results: net profit more than tripled (up over 200-219% YoY) to around ₹302-347 crore, driven by robust execution in turnkey projects, revenue growth of 58-59% to ₹1,194-1,210 crore, and strong order book momentum. 

TVS Supply Chain Solutions continued its momentum, gaining notably (with recent multi-day surges of 30% in five days) on the back of solid performance.  Other movers were Puravankara (reacting positively to good numbers), G Power, and select names in metals and pharma. On the downside, profit booking hit hard despite strong fundamentals in some cases. Motilal Oswal Financial Services (or related entities like Muthoot Finance, likely a reference) saw sharp declines of around 11-12% even after upbeat Q3 results and upgraded AUM growth guidance to 45% by year-end, including strong gold loan performance. 

Other laggards included names with profit declines or margin pressures, such as certain IT majors (Coforge, Kpit Tech, Tata Elxsi, Birlasoft down over 2%), and select pharma/life sciences stocks. Technical analysts advised caution on the Nifty, noting a break below key levels like 25,800 and failure to sustain above 25,600, with significant call writing at 25,600 acting as resistance. 

Further weakness was possible unless the index reclaimed 25,600 decisively. For IT stocks, which have fallen to extreme levels with some intraday recoveries, experts recommended reducing positions at higher levels rather than buying aggressively, likening it to avoiding a "falling knife."  Individual picks included bullish views on Biocon (in the 380-400 range, targeting 400 with stop-loss near 370) amid stabilizing post-results action, and Jindal Steel & Power (around 1,190-1,200, eyeing 1,300 with stop-loss at 1,160) in the resilient metals space. 

In earnings highlights, Biocon stood out as a gainer (up around 1.6%) in a weak market, driven by strong Q3 FY26 performance: robust biologics margins from high-margin geographies, successful gLiraglutide (GLP-1) launches in the UK, Germany,  Netherlands, upcoming US opportunities, and partnerships (e.g., with Ajanta Pharma for semaglutide). 

The company reduced leverage significantly post-fundraising and focused on growth in GLP-1 and biosimilars.  Honasa Consumer (Mamaearth) also reacted positively (up around 4%) to Q3 results showing 17-20% revenue growth (adjusted), operating leverage with EBITDA jumping sharply to record margins near 11% (guidance for further improvement), and net profit nearly doubling, fueled by 30% volume growth across key brands like Mamaearth and Dermaco. 

Silver ETFs faced continued pressure, with names like Tata Silver ETF and Nippon India Silver ETF down around 5%, extending monthly losses of 18-22% amid volatility in the precious metals space. The session underscored persistent concerns over AI's impact on IT services—echoed in expert commentary that while adoption may be slower than feared due to enterprise complexity, a short window exists for transformation, with substantial productivity gains possible in select areas. Midcaps' relative strength and selective earnings beats provided pockets of optimism amid the broader downturn.