Why did Sensex, Nifty slump today? Are IT stocks the main culprit?
Broader markets also came under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 falling more than 1 per cent each, reflecting widespread risk aversion among investors.
- Feb 13, 2026,
- Updated Feb 13, 2026 3:11 PM IST
Indian equity benchmarks extended their sharp fall in Friday's trading session as selling pressure intensified across information technology (IT) stocks. The 30-share BSE Sensex pack and the NSE Nifty50 index each declined over 1 per cent during the day.
The weakness was not limited to frontline indices. Broader markets also came under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 falling more than 1 per cent each, reflecting widespread risk aversion among investors.
On the sectoral front, most NSE indices traded in the red. Nifty IT emerged as the worst-performing index in early trade, plunging over 5 per cent at one point. Although it recovered some of the losses as the session progressed, it was still trading 1.56 per cent lower. Nifty Media was the only sectoral gainer, up 0.30 per cent.
Apart from IT, other major sectors contributing to the decline included metals, consumer durables, realty, energy, banking and financial services, indicating that the selloff was broad-based rather than confined to technology stocks alone.
Market participants attributed the sharp correction in IT stocks to rising concerns over artificial intelligence (AI)-led technological disruption and the resulting uncertainty around traditional business models.
"The IT sector is going through a massive shakeout. The race to build better AI agentic agents and stronger application layers could create significant disruption not just within the sector, but also across the domains it operates in and the end-user industries it serves. I believe a major disruptor is at play. One should stay on the sidelines and watch," Mayuresh Joshi, Head of Equity Research at William O'Neil India, told Business Today.
While near-term volatility remains elevated, some experts suggested that the correction could offer long-term opportunities in select counters.
"Now, it's high time for Indian IT companies to adopt the change and transform their business models in line with the disruption taking place in the technology world. Companies which adopt new technologies and changes -- and how quickly they can transform their business models -- are expected to sustain. The remaining companies are going to face challenging times ahead," said Kranthi Bathini, Equity Strategist at WealthMills Securities.
"Investors with high risk appetite and a medium to long-term horizon can buy Indian IT companies in a very staggered manner, looking at global developments and how these companies are changing their business models. In the medium to short term, better to avoid IT," Bathini further stated.
Market expert Avinash Gorakshakar maintained a constructive view on larger IT players, including Tata Consultancy Services (TCS), Infosys, HCLTechnologies Ltd and Persistent Systems Ltd.
"These IT companies have very strong domain knowledge across the entire business chain, which is highly competitive. However, one should also understand that such events create a level of panic and uncertainty for some time. My view is that Indian IT companies are quite strong. Of course, those who want to invest now should take a long-term view (12–18 months) if they are looking for better risk-reward. In the short term, volatility will continue because there is a lot of noise in the market, which creates uncertainty. But fundamentally, these companies appear to be quite solid," Gorakshakar stated.
Indian equity benchmarks extended their sharp fall in Friday's trading session as selling pressure intensified across information technology (IT) stocks. The 30-share BSE Sensex pack and the NSE Nifty50 index each declined over 1 per cent during the day.
The weakness was not limited to frontline indices. Broader markets also came under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 falling more than 1 per cent each, reflecting widespread risk aversion among investors.
On the sectoral front, most NSE indices traded in the red. Nifty IT emerged as the worst-performing index in early trade, plunging over 5 per cent at one point. Although it recovered some of the losses as the session progressed, it was still trading 1.56 per cent lower. Nifty Media was the only sectoral gainer, up 0.30 per cent.
Apart from IT, other major sectors contributing to the decline included metals, consumer durables, realty, energy, banking and financial services, indicating that the selloff was broad-based rather than confined to technology stocks alone.
Market participants attributed the sharp correction in IT stocks to rising concerns over artificial intelligence (AI)-led technological disruption and the resulting uncertainty around traditional business models.
"The IT sector is going through a massive shakeout. The race to build better AI agentic agents and stronger application layers could create significant disruption not just within the sector, but also across the domains it operates in and the end-user industries it serves. I believe a major disruptor is at play. One should stay on the sidelines and watch," Mayuresh Joshi, Head of Equity Research at William O'Neil India, told Business Today.
While near-term volatility remains elevated, some experts suggested that the correction could offer long-term opportunities in select counters.
"Now, it's high time for Indian IT companies to adopt the change and transform their business models in line with the disruption taking place in the technology world. Companies which adopt new technologies and changes -- and how quickly they can transform their business models -- are expected to sustain. The remaining companies are going to face challenging times ahead," said Kranthi Bathini, Equity Strategist at WealthMills Securities.
"Investors with high risk appetite and a medium to long-term horizon can buy Indian IT companies in a very staggered manner, looking at global developments and how these companies are changing their business models. In the medium to short term, better to avoid IT," Bathini further stated.
Market expert Avinash Gorakshakar maintained a constructive view on larger IT players, including Tata Consultancy Services (TCS), Infosys, HCLTechnologies Ltd and Persistent Systems Ltd.
"These IT companies have very strong domain knowledge across the entire business chain, which is highly competitive. However, one should also understand that such events create a level of panic and uncertainty for some time. My view is that Indian IT companies are quite strong. Of course, those who want to invest now should take a long-term view (12–18 months) if they are looking for better risk-reward. In the short term, volatility will continue because there is a lot of noise in the market, which creates uncertainty. But fundamentally, these companies appear to be quite solid," Gorakshakar stated.