Market Crash 2026: Nifty IT Plunges 5% as Indices Tumble

Introduction to the Market Decline

The Indian stock market experienced a significant downturn on February 13, 2026, with benchmark indices closing deep in the red. Sustained selling pressure across multiple sectors led to a broad-based decline, extending losses for a third consecutive session. The Nifty 50 fell below the crucial 25,700 mark, while the Sensex shed over 650 points, reflecting weakened investor sentiment amid a mix of domestic and global factors.

Widespread Sectoral Losses

The sell-off was comprehensive, with all sectoral indices ending the day with losses. The information technology (IT) sector was the hardest hit, with the Nifty IT index plummeting by nearly 5%. Major IT constituents like Infosys, TCS, HCL Technologies, and Wipro were among the top losers on the Nifty. This sharp correction in IT stocks points to concerns over global economic conditions and potential slowdowns in client spending.

Other sectors also faced intense selling. The Nifty Metal index plunged 3.4%, followed by Nifty Oil & Gas which fell 2.84%. Nifty PSU Bank, Realty, and Pharma indices also recorded significant losses, declining by 2.08%, 1.71%, and 1.38% respectively. This indicates that the negative sentiment was not isolated to a single theme but was prevalent across the entire market.

Broader Market Underperformance

The pain was more pronounced in the broader markets, which underperformed the frontline indices. The Nifty Midcap 150 index was down 0.66%, while the Nifty Smallcap 250 index slipped by a sharper 1.38%. On the Nifty Midcap 100, 95 out of 100 stocks closed in the red, and on the Nifty Smallcap 100, 89 stocks declined. This widespread decline highlights a risk-off sentiment among investors, who are moving away from smaller, more volatile stocks.

Key Market Data Summary

To provide a clear picture of the market's performance, the following table summarizes the key metrics from the trading session:

Factors Driving the Market Fall

Analysts attribute the market correction to a combination of factors. Persistent selling by Foreign Institutional Investors (FIIs) has been a primary driver, dampening overall market sentiment. FIIs have been net sellers for several months, offloading significant holdings and creating liquidity pressure.

Global cues also played a crucial role. Investor caution ahead of potential interest rate decisions by the U.S. Federal Reserve and other central banks has led to uncertainty. Furthermore, geopolitical tensions and concerns over global tariff policies have prompted investors to reduce their exposure to riskier assets like equities.

Stock-Specific Movements

While the market was overwhelmingly negative, a few stocks managed to buck the trend. SBI Life Insurance, Eternal, Tata Consumer, Bharti Airtel, and HDFC Life were among the major gainers on the Nifty. However, the list of losers was extensive. Top laggards included IT giants Infosys, TCS, and Wipro, alongside commodity major Hindalco.

In the broader market, stocks like BHEL, Hitachi Energy India, and NALCO saw significant declines, falling between 5% and 9%. The pressure was also visible on companies from the defense and real estate sectors.

Technical Outlook and Analyst Commentary

From a technical standpoint, the Nifty closing below its 20-day Simple Moving Average (SMA) and the psychological level of 26,000 is considered a negative signal. According to market analysts, the sentiment is likely to remain weak as long as the index trades below this key level. The immediate support for the Nifty is seen around the 25,800 mark, while resistance is placed near 26,200.

The sharp increase in the India VIX, a gauge of market volatility, suggests that uncertainty may persist in the near term. Investors are advised to remain cautious as the market navigates through these turbulent conditions.

Conclusion

The market's sharp fall on February 13 underscores the prevailing cautious sentiment driven by FII outflows and uncertain global macroeconomics. The severe downturn in the IT sector, coupled with weakness in mid-cap and small-cap stocks, signals a broad-based correction. Looking ahead, market direction will likely be dictated by upcoming central bank policies and the evolving geopolitical landscape.