India's Semiconductor Push: From Policy to Production
Global sentiment remains mixed as US markets showed divergence overnight—Dow Jones advanced 52.27 points (0.1%) to 50,188.14, while Nasdaq Composite fell 136.20 points (0.6%) to 23,102.47 amid retail sales weakness.
MK
Dr. Murali KalyanaramanGlobal CFO · 30+ years in corporate finance · Chartered Accountant (ICAI) · 10 min read
Signal panelThe research, before the reading · 10 min full note
01
Key Trigger: Monitor US tech earnings and AI adoption commentary for directional cues on Indian IT valuations, particularly as global tech majors like
02
Commodities: Crude oil (Brent): traded at $68.86 per barrel on February 10, up from $65.97 on February 1, with monthly high at $69.35.
03
Record institutional divergence: On February 10, DIIs bought ₹1,174 crore while FIIs sold ₹353 crore in cash segment—the widest single-day divergence in February 2026, highlighting how domestic liquidity (SIPs, insurance, pension funds) is…
04
Systematic SIP Inflows: Monthly retail contributions exceeding ₹20,000 crore provide non-discretionary buying support through mutual fund systematic investment plans, creating predictable demand regardless of market conditions.
This research is for information and education only and is not investment advice. Figures may be provisional. Oorjita.AI and its authors may hold positions in securities mentioned. Please consult a SEBI-registered investment adviser before making investment decisions. Published Wednesday, 11 February 2026, 8:54 AM IST.
Indian markets closed modestly higher on Tuesday, with Nifty 50 gaining 67.85 points (0.26%) to settle at 25,935.15, while Sensex added 208.17 points (0.25%) to close at 84,273.92. Bank Nifty ended at 60,626.40 after opening at 60,740.80, reflecting cautious positioning in banking stocks. GIFT Nifty futures at 07:02 AM IST today indicate a flat-to-positive opening, trading at 26,055.50, up 18 points (0.07%) from Nifty's previous close.
Global sentiment remains mixed as US markets showed divergence overnight—Dow Jones advanced 52.27 points (0.1%) to 50,188.14, while Nasdaq Composite fell 136.20 points (0.6%) to 23,102.47 amid retail sales weakness. Asian markets today are trading with a positive bias, with Japan's Nikkei 225 hitting record highs and South Korea's Kospi advancing 1.21%. The key watch factor today is Q3 earnings momentum, with major corporates including Titan Company, Britannia Industries, and Eicher Motors having reported strong results yesterday.
Institutional flows remain a tug-of-war: DIIs (Domestic Institutional Investors) pumped in over ₹1,174 crore on February 10, while FIIs (Foreign Institutional Investors) turned net sellers to the tune of ₹352.55 crore in NSE cash segment, signaling selective profit booking.
Tech Pulse
Indian IT stocks remain under pressure following early-February selloffs triggered by Anthropic's launch of advanced AI workplace productivity tools, which sparked concerns about conventional IT services becoming commoditized. Major IT stocks including Infosys, TCS, and Wipro had witnessed 3-7% declines in early February, wiping out approximately ₹1.9 lakh crore in market capitalization. International brokerage Jefferies reduced its IT sector allocation to 5.6% from 9.7% MSCI India weighting, citing AI disruption risks.
However, a counter-narrative is emerging: foreign funds are gradually returning to Indian tech stocks driven by AI growth opportunities, with companies like TCS, Infosys, and HCL Tech demonstrating AI-led business transformation and improved visibility. The sector sentiment remains fragile, with pricing power and profitability concerns dominating near-term outlook.
Key Trigger: Monitor US tech earnings and AI adoption commentary for directional cues on Indian IT valuations, particularly as global tech majors like Alphabet and Amazon report quarterly results this week.
IPO Pipeline Watch (₹2,100 cr live today)
Fractal Analytics IPO closes today (February 11, 2026) with a ₹2,100 crore issue at price band ₹857-900 per share—India's first AI-focused public offering. The issue, which opened on February 9, has already secured ₹1,248.25 crore from anchor investors on February 6, with lot size set at 16 shares. Lead managers include top-tier investment banks, and the tentative allotment date is February 12, with expected listing on BSE and NSE on February 16.
Oorjita Pre-Emptive Read:
Fractal Analytics operates in the high-growth AI-driven analytics and decision sciences space, positioning itself uniquely as India's first pure-play AI company to list publicly. The strong anchor book subscription signals institutional confidence, particularly given the current AI disruption narrative affecting traditional IT services. However, valuation scrutiny will be critical—investors should compare P/E multiples and revenue per employee metrics against listed peers like Persistent Systems and mid-sized analytics firms. The timing is double-edged: while AI is a structural mega-theme, near-term IT sector weakness (Nifty IT down 4-7% in early February) could impact listing sentiment.
Red Flags:
Listing amid broader IT sector volatility and AI disruption concerns
Premium valuation expectations in a cautious FII flow environment
Green Flags:
First-mover advantage as India's debut AI-focused IPO
Strong anchor allocation of ₹1,248+ crore indicates institutional validation
Q3 earnings continue to drive stock-specific action. Titan Company reported robust December quarter results ahead of expectations, supporting pre-market optimism. Eicher Motors posted 21% YoY net profit growth to ₹1,421 crore with revenue up 23%, while Grasim Industries reported 26% profit growth to ₹1,037 crore. Oil India disappointed with 34% profit decline but announced ₹7 interim dividend.
Banking stocks remain in focus as Bank Nifty holds above the psychological 60,000 mark, with support at 60,500 and resistance near 61,000. Analysts note that sustained strength in banking indices is critical for broader market stability, given their representation of credit growth and economic activity expectations.
Key Watchlist Stocks: Apollo Hospitals, BHEL, Ion Exchange, and IFCI are on trader radar today for potential intraday moves.
Global Cues & Commodities
US markets exhibited mixed signals overnight as the Dow inched up 0.1% to 50,188.14, while tech-heavy Nasdaq slipped 0.6% to 23,102.47 on weak retail sales data. The S&P 500 fell 0.3% to 6,941.81. Asian markets are trading higher this morning, with Japan's Nikkei 225 at record levels and Hang Seng up 0.58% to 27,183.15.
Currency: The INR/USD exchange rate stood at 90.4880 on February 10, down 0.30% from previous session, as per Trading Economics. RBI reference rate reported at 90.577 by CEIC Data. The rupee has weakened 4.26% over the last 12 months, touching an all-time high of 92.29 in January 2026.
Commodities: Crude oil (Brent) traded at $68.86 per barrel on February 10, up from $65.97 on February 1, with monthly high at $69.35. Gold (MCX) is trading around ₹1,58,000 per 10 grams, down 0.5% intraday but up 2% weekly, supported by geopolitical tensions and rupee weakness. Year-to-date, 24K gold has climbed 12%, outpacing equities amid market volatility.
What to Watch Today
Macro: Monitor any RBI commentary on liquidity conditions; US retail sales data impact on Fed rate trajectory
Earnings: Additional Q3 results from mid-cap and small-cap companies; management commentary on margin outlook
IPO: Fractal Analytics subscription closes today—watch final subscription multiples across categories
Global: Asian market momentum; Middle East geopolitical developments impacting crude oil
Nifty 50: Support at 25,800, 25,780 | Resistance at 25,930, 26,000
Bank Nifty: Support at 60,500, 60,000 | Resistance at 60,900, 61,000
GIFT Nifty: Resistance levels at 26,051 (R1), 26,099 (R2) | Support at 25,913 (S1), 25,823 (S2)
Quick Byte
Record institutional divergence: On February 10, DIIs bought ₹1,174 crore while FIIs sold ₹353 crore in cash segment—the widest single-day divergence in February 2026, highlighting how domestic liquidity (SIPs, insurance, pension funds) is increasingly decoupling India's market trajectory from foreign capital flows.
Funding Radar
Indian startups raised $130.5 million across 20 deals in the first week of February 2026, up 36% from the preceding week, signaling continued momentum in early-stage funding despite broader IPO migration trends. The largest deal was The Whole Truth (D2C health food brand), which secured $51 million in Series D funding led by Sauce.vc and Sofina, with participation from Peak XV
Partners and Rainmatter Health.
Varaha, a climate tech B2B startup, raised $20 million in Series B from WestBridge Capital, Omnivore Ventures, and RTP Global, highlighting investor appetite for carbon credit and sustainability solutions. Quick commerce player ZILO attracted $15.3 million in Series A from Peak XV Partners and Info Edge Ventures, entering the hyper-competitive quick commerce battleground dominated by Zomato's Blinkit, Swiggy Instamart, and Zepto.
Material Depot, a construction materials vertical marketplace, closed $10 million Series A led by Accel and Stellaris Venture Partners, while robotics startup Octobotics and maritime tech firm EyeROV raised $1.1 million and $1.4 million respectively in pre-Series A rounds. Notably, InCred Holdings (fintech) and SEDMAC (deeptech) received SEBI clearance for their IPOs this week, reinforcing the ongoing startup-to-public-market transition.
Deep Dive – India's Semiconductor Push: From Policy to Production
India's semiconductor manufacturing ambitions are transitioning from policy announcements to tangible production milestones in 2026. Union Minister Ashwini Vaishnaw confirmed on February 8 that four semiconductor plants will commence commercial production this year, marking a watershed moment for India's electronics self-reliance strategy.
CG Power and Kaynes Technology, both of which initiated pilot production in 2025, are poised to scale up to commercial manufacturing first. Micron Technology's Gujarat facility recently started pilot production and will transition to full-scale operations shortly, while Tata Electronics' Assam fab is scheduled to begin pilot runs by mid-2026 and reach commercial output by year-end.
Investment Scale: The government has approved 10 semiconductor manufacturing projects totaling over ₹1.6 lakh crore across six states—Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh. International interest remains robust, with Taiwan, Japan, and South Korea expressing "immense and huge" confidence in India's semiconductor ecosystem.
Design Capabilities Leap: Under the redesigned Design Linked Incentive (DLI 2.0) scheme, Indian companies have advanced from designing 5-7 nanometer chips to working on cutting-edge 2- nanometer chip designs, narrowing the technology gap with global leaders. The restructured DLI now requires market validation of design concepts beyond initial government support, ensuring taxpayer funds drive commercially viable innovation.
Quote of the Day
"Focus on buying a business rather than a stock. When you're just looking at the price of something, you're not investing."
— Warren Buffett, CEO of Berkshire Hathaway, in timeless advice for navigating high-valuation markets (October 2025)
This pattern underscores three critical structural forces reshaping India's equity market dynamics:
Systematic SIP Inflows: Monthly retail contributions exceeding ₹20,000 crore provide non-discretionary buying support through mutual fund systematic investment plans, creating predictable demand regardless of market conditions.
Insurance & Pension Fund Allocation: Regulatory mandates requiring life insurance companies and pension funds to maintain minimum equity exposure drive steady institutional accumulation, particularly during market corrections.
FII Tactical Caution: Global risk-off sentiment, dollar strength (INR at 90.48/USD), and portfolio rebalancing pressures trigger tactical profit-booking in emerging markets despite India's robust fundamentals
The 36% weekly funding increase to $130.5 million and multiple SEBI IPO approvals signal that domestic capital formation is increasingly self-sustaining, reducing India's vulnerability to foreign flow volatility and creating a more stable foundation for market resilience.
Disclaimer: This analysis is for educational purposes only. Markets are subject to risks and uncertainties. Please consult your financial advisor before making investment decisions. Past performance is not indicative of future results.
Oorjita Samiksha (Quarterly Earnings) - Deep company research
Oorjita FinAI Services
Investing Beyond Today
Disclosures and notes
Website: oorjita.ai
Newsletter Editions:
Morning Brief (Pre-Market Analysis) - Daily 8:00-8:30 AM IST
Evening Update ("What We Missed") - Daily 7:00-7:30 PM IST
Weekly Market Manthan - Every Sunday
Quarterly Company Deep-Dives (Samiksa Oorjita Series)
Compliance & Disclaimer
www.oorjita.ai is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.oorjita.ai represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Oorjita Fin AI Services be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.oorjita.ai, or relating to the use of, or inability to use, www.oorjita.ai or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
