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Markets settle lower in passing week amid AI-led disruption concerns
Feb-13-2026

Indian markets settled lower in passing week with cut of around a percent each. Initial optimism surrounding an interim trade agreement between India and US was overshadowed by sell-off in IT and Teck stocks amid fresh concerns about artificial intelligence disruptions to traditional business models weighing on several sectors, such as financial, transportation and logistics.

Some of the major developments during the week are:

Retail inflation stands at 2.75% for January under new series: Marking a comprehensive overhaul of the inflation gauge in over a decade, the government has released CPI with Base 2024=100. The provisional data showed all India CPI with base year 2024 stood at 2.75% for January 2026 over January 2025.

Unemployment declines marginally in October-December 2025: National Statistics Office in its quarterly Periodic Labour Force Survey has showed that rate of unemployment among persons aged 15 years and above in cities declined marginally to 6.7% in October-December 2025 from 6.9% in the previous quarter.

FADA reports robust 18% growth in automobile retail sales in January: Federation of Automobile Dealers Associations has said that overall automobile retail sales grew by 17.61% to 27,22,558 units in January 2026 over 23,14,940 units in January 2025, with continued post-GST momentum, healthy rural cash flows.

Net direct tax collection rises 9.40% till February 10 of FY26: Income Tax Department data showed that net direct tax collection grew 9.40% to Rs 19,43,743.97 crore till February 10, 2026 in FY26 as compared to Rs 17,76,728.11 crore till February 10 of FY25 on slower refunds and higher corporate tax mop-up.

India-EU agreement ‘truly mother of all deals’: Commerce Secretary Rajesh Agrawal has said that the recent conclusion of negotiations for a Free Trade Agreement between India and the 27-nation European Union is 'truly a mother of all deals' as it covers together nearly one-fourth of the global economy.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 953.64 points or 1.14% to 82,626.76 during the week ended February 13, 2026. On the sectoral front, S&P BSE Information Technology was down by 2,760.55 points or 8.04% to 31,591.23, S&P BSE TECK was down by 1,004.01 points or 5.71% to 16,590.46 and S&P BSE Oil & Gas was down by 563.66 points or 1.93% to 28,595.04 were the top losers, while S&P BSE Auto was up by 1,404.02 points or 2.29% to 62,588.67, S&P BSE Consumer Durables was up by 1,160.06 points or 2.01% to 58,879.99 and S&P BSE Consumer Discretionary Goods & Services was up by 157.39 points or 1.66% to 9,666.74 were the top gainers.

NSE movement for the week

The Nifty slipped 222.60 points or 0.87% to 25,471.10. On the National Stock Exchange (NSE), Nifty IT was down by 2929.55 points or 8.23% to 32,681.50, Nifty Next 50 lost 231.65 points or 0.34% to 68,826.75 and Nifty Mid Cap 100 decreased 64.70 points or 0.11% to 59,438.00, while Bank Nifty was up by 66.10 points or 0.11% to 60,186.65.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 92,519.14 crore and gross sales of Rs 80,973.33 crore, leading to a net inflow of Rs 11,545.81 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 9,056.13 crore against gross sales of Rs 5,495.22 crore, resulting in a net inflow of Rs 3,560.91 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 155.46 crore and gross sales of Rs 1,302.21 crore, leading to a net outflow of Rs 1,146.75 crore.

Industry and Economy

Moody's Ratings has forecasted economic growth of India for FY27 at 6.4%, which is fastest pace among G-20 economies, based on parameters like strong domestic consumption, policy measures, and a stable banking system. In banking system outlook report, it said the bank’s asset quality will remain resilient, with some stress among MSMEs. Regardless, banks have sufficient reserves to absorb loan losses. It noted that the operating environment for banks will remain strong in 2026, supported by robust macroeconomic conditions and structural reforms. Indicating inflation under control and growth momentum remaining strong, it estimated that the Central Bank will further ease monetary policy in fiscal 2026-27 only if there are signs of a slowdown in economic activity. 

Outlook for the coming week

In the passing week, Indian equity benchmarks ended in red due to sell-off in IT and Teck stocks. Concerns over artificial intelligence-led disruptions weighed on market sentiments.

In the coming week, market participants will be eyeing India's annual Wholesale Price Index and Balance of Trade data scheduled to be released on February 16. HSBC Composite PMI Flash, HSBC Manufacturing PMI Flash, HSBC Services PMI Flash, Bank Loan Growth and Foreign Exchange Reserves data are going to be out on February 20.

Meanwhile, Brazilian President Luiz Inacio Lula da Silva will pay a state visit to India from February 18 to 22, marking another significant moment in the deepening India-Brazil strategic partnership.

On the global front, the coming week will be holiday shortened as the US markets will remain close on February 16 on account of Washington's Birthday. On economic data front, investors will be eyeing Redbook YoY on February 17, Building Permits Prel, Industrial Production MoM on February 18, FOMC Minutes, Balance of Trade, Initial Jobless Claims, Philadelphia Fed Manufacturing Index on February 19, GDP Growth Rate, S&P Global Composite PMI Flash, Michigan Consumer Sentiment, Baker Hughes Oil Rig Count on February 20.

Top Gainers 

  • Eicher Motors up by 11.87% was the top gainer on Nifty for the week - Eicher Motors caught investors’ attention after the company’s December quarter earnings beat street expectations. The company has reported 21.37% rise in its consolidated net profit at Rs 1,420.61 crore for the third quarter ended December 31, 2025 as compared to Rs 1,170.50 crore for the same quarter in the previous year.
  • State Bank of India (SBI) up by 11.65% was another top gainer on Nifty for the week - SBI’s third quarter numbers put investors in buying mood. The bank reported 13.07% rise in its consolidated net profit at Rs 21,317.11 crore for Q3FY26 as compared to Rs 18,853.16 crore for the same quarter in the previous year. Besides, it has raised its FY26 credit growth guidance to 13-15% from 12-14% earlier.

Top Losers 

  • Tata Consultancy Services (TCS) by 10.01% was the top loser of the week on Nifty - Investors turned bearish on TCS along with other IT sector stocks amid concerns that rapid advances in artificial intelligence tools could reduce demand for outsourcing work, which forms the backbone of India’s IT business model.
  • Infosys down by 9.94% was another top loser of the week on Nifty - Infosys along with other IT companies suffered the global broad base selling among the tech stocks. Besides, IT stocks were saddled by weakened US dollar against other major currencies. Weaker dollar diminishes export revenues of the IT companies.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 26,009.40 on February 11 and lowest level of 25,444.30 on February 13. On the last trading day, the Nifty closed at 25,471.10 with weekly loss of 222.60 points or 0.87 percent. For the coming week, 25,273.80 followed by 25,076.50 are likely to be good support levels for the Nifty, while the index may face resistance at 25,838.90 and further at 26,206.70 levels.

US Market

The U.S. markets traded lower during the week due to concerns about the impact of the artificial intelligence buildout on industries other than the tech sector.

Some of the major developments during the week are:

U.S. existing home sales pull back in January: Existing home sales plunged by 8.4 percent to an annual rate of 3.91 million in January after surging by 4.4 percent to a downwardly revised rate of 4.27 million in December.

Non-farm payroll employment in U.S. jumps in January: Non-farm payroll employment jumped by 130,000 jobs in January after rising by a downwardly revised 48,000 jobs in December. Street had expected employment to climb by 70,000 jobs. 

U.S. weekly jobless claims dip in week ended February 7: Initial jobless claims dipped to 227,000, a decrease of 5,000 from the previous week's revised level of 232,000.

U.S. retail sales unexpectedly unchanged in December: Retail sales came in virtually unchanged in December after climbing by 0.6 percent in November. Street had expected retail sales to rise by 0.4 percent.

Business inventories in U.S. inch up in November: The Commerce Department said business inventories inched up by 0.1 percent in November after growing by a downwardly revised 0.2 percent in October.

European Market

European markets remained firm during the passing week, as investors cheered upbeat earnings from the likes of Legrand, Hermes and Siemens. Traders shrugged off data that showed the U.K. economy grew less than forecast in the fourth quarter.

Some of the major developments during the week are:

Eurozone investor confidence strongest in 7 months: The investor confidence index rose to 4.2 in February from -1.8 in January. This was the highest since July 2025 and also exceeded the forecast of -0.2. 

Sweden industrial output growth improves to 4.2%: Industrial production advanced a calendar-adjusted 4.2 percent year-over-year in December, faster than the 3.1 percent increase in November. Production has been rising since April.

UK economy expands 0.1% in Q4: Gross domestic product grew 0.1 percent on a quarterly basis, the same slow pace of increase as seen in the third quarter. Moreover, this was slightly weaker than the forecast of 0.2 percent.

Italy industrial output falls 0.4% in December: Industrial production dropped 0.4 percent month-on-month in December, reversing a 1.5 percent increase in November. Output was forecast to decrease by 0.5 percent.

Spain industrial output falls for first time in 10 months: Industrial production dropped by adjusted 0.3 percent year-on-year in December, in contrast to the 4.6 percent rise in November. This was the first drop since February.

Asian Market

Asian markets traded higher during the passing week as investors looked to U.S. CPI data for clues on when the Federal Reserve might cut rates.

Some of the major developments during the week are:

Japan producer prices rise in January: Producer prices in Japan were up 0.2 percent on month in January- in line with expectations and up from 0.1 percent in December.

China’s CPI inflation softens in January: China's annual consumer price inflation unexpectedly cooled from 0.8% in December to 0.2% in January, raising fresh concerns about persistent deflationary pressures in the world's second-largest economy.

China’s producer prices fall in January: China’s producer prices dropped 1.4 percent year-on-year in January 2026, slowing from a 1.9 percent fall in December and extending the contraction to a 40th consecutive month.

China's new home prices extend decline in January: China’s new home prices showcased a drop of 3.3 percent Y-o-Y in January, marking steepest drop in seven months, and underscored Beijing’s struggle to stabilize property markets.

US, China reportedly to extend trade truce in April summit: The United States and China are reportedly eyeing to extend their trade truce for up to a year when President Donald Trump and President Xi Jinping meet in Beijing in early April.
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