Wall Street's tech rout extended Thursday as AI-related concerns and profit-booking sent the Nasdaq Composite tumbling over 2%, its worst single-day drop in weeks.
Marushika Technology IPO: opens today for a 5-day subscription window (Feb 12-16) targeting ₹26.97 crore through a fresh issue of 23.05 lakh shares priced at ₹111-117.
FII/DII Flows: Monitor continuation of DII support (₹1,410 crore bought yesterday) amid FII selling (₹853 crore sold)
Infosys, HCL Tech: IT stabilization attempts after 3-4% declines; oversold bounce potential
Kaynes Technology, CG Power: Semiconductor theme beneficiaries; commercial production newsflow.
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 Friday, 13 February 2026, 8:25 AM IST.
Morning's Bear call was directionally validated, but the intraday recovery depth was underestimated. The market found its panic floor exactly where the morning brief mapped it — and then bounced.
Despite flat index performance, more stocks declined (1672) than advanced (1494), indicating weak internal market strength. This suggests the market move was concentrated in a few heavyweight stocks.
*Note: 19-Feb (Chhatrapati Shivaji Maharaj Jayanti) — FBIL did not publish a fresh forex rate (carried 18-Feb forward); NSE equity market was operational; FII/DII data present.
Indian markets face a cautious start this Friday as GIFT Nifty futures trade at 25,677, down 174 points (-0.67%), signaling weakness ahead of the opening bell. Benchmark indices snapped their winning streak yesterday with Nifty closing at 25,807.20 (-146.65 points, -0.57%) and Sensex settling at 83,674.92 (-558.72 points, -0.66%) as IT stocks dragged sentiment lower. Global headwinds persist with Wall Street closing sharply lower—Dow shed 670 points (-1.34%) to 49,452, Nasdaq plunged 469 points (-2.04%) to 22,597, and S&P 500 dropped 108 points (-1.57%) to 6,832 amid tech sector sell-off. The day ahead features two SME IPO listings and the opening of Marushika Technology's ₹27 crore offering, adding stock-specific action to an otherwise subdued global backdrop.
Wall Street's tech rout extended Thursday as AI-related concerns and profit-booking sent the Nasdaq Composite tumbling over 2%, its worst single-day drop in weeks. Apple and AppLovin shares led decliners as investors questioned stretched valuations in the artificial intelligence space. Back home, the Nifty IT index slumped 1.8% yesterday, with heavyweights Infosys and HCL Tech sliding up to 4% each. The broader IT sector has now declined 12% year-to-date in 2026, making it the worst-performing sectoral index. Despite near-term weakness, analysts view the 25,700-25,800 zone as a consolidation base for Nifty, with the psychological 26,000 level remaining the key breakout threshold for sustainable upside.
Idfy, a Mumbai-based regulatory technology startup, secured ₹476 crore ($52 million) in a funding round led by Neo Asset Management on February 12, marking one of the week's largest deals. The regtech player specializes in identity verification and compliance solutions for financial institutions. Between February 2-7, Indian startups raised $347 million across 23 deals, with Fractal Analytics leading at $137.7 million from anchor investors ahead of its IPO, followed by electric mobility platform Drivn securing $80 million from Nomura. Clean-label food brand The Whole Truth raised $51 million in Series D led by Sofina and Sauce.vc, while climate-tech startup Varaha secured $20 million in its Series B first tranche from WestBridge Capital. The AI and e-commerce sectors led deal flow with 5 transactions each, reflecting continued investor appetite despite broader market volatility.
Marushika Technology IPO opens today for a 5-day subscription window (Feb 12-16) targeting ₹26.97 crore through a fresh issue of 23.05 lakh shares priced at ₹111-117. The NSE SME offering, with a minimum lot size of 1,200 shares (₹1.40 lakh investment), is scheduled for allotment on February 17 and listing on February 19. Lead managers Vivro Financial Services and Fedex Securities have structured this entirely as fresh capital, indicating growth funding rather than promoter exit.
The technology solutions provider enters a crowded SME segment during market volatility, with GIFT Nifty's 174-point gap-down signaling investor caution. SME IPOs typically see retail enthusiasm, but current IT sector weakness (down 12% YTD) may temper subscriptions. The ₹117 upper band translates to a post-issue market cap of approximately ₹31.47 crore—modest by industry standards. Investors should scrutinize client concentration risk and revenue quality from SEBI DRHP filings, particularly given the company's focus on IT services during a sector downturn.
Foreign Institutional Investors (FIIs) turned net sellers on February 12, offloading ₹853.68 crore in cash markets while Domestic Institutional Investors (DIIs) bought ₹1,410.89 crore, providing crucial support. Month-to-date (February 1-12), FIIs remain net buyers at ₹6,021.85 crore, though the pace has slowed sharply from early-month inflows of ₹5,236 crore on February 3 alone.
Sectoral divergence was stark yesterday—Nifty Auto surged 1.3% led by Eicher Motors, while Nifty Pharma and PSU Bank indices gained around 1% each, contrasting sharply with IT's 1.8% decline. Bank Nifty closed at 60,739, forming a neutral hammer candle that suggests buying interest at lower levels, with PSU banks continuing to outperform private peers. Top gainers included auto and pharma stocks, while IT heavyweights Infosys (-4%), HCL Tech (-3.5%), and TCS faced continued selling pressure.
Asian markets show mixed signals this morning—Nikkei trades marginally lower at -0.02% while Hang Seng drops 0.86%, reflecting spillover from Wall Street's tech selloff. Gold holds near record highs at ₹15,839/gram (24K), barely budging ₹1 lower, as safe-haven demand remains elevated amid global uncertainty. Bank Nifty's 60,739 close marks precisely the mid-point of its 52-week range, a technical inflection zone that often precedes directional breakouts.
Nifty IT's 12% decline in 2026 marks its worst start to a calendar year since the 2022 rate-hike cycle, with the index underperforming every other sectoral benchmark. Yesterday's 1.8% intraday crash—led by Infosys (-4%), HCL Tech (-3.5%), and TCS—underscores deepening structural concerns beyond typical profit-booking. Three converging factors explain this sustained sell-off.
Accenture's recent quarterly warning that discretionary spending "remained limited" with no material uptick in client budgets sent shockwaves through Indian IT valuations. The global IT services bellwether's caution signals that corporate tech budgets—particularly in the US, which accounts for 60-65% of Indian IT revenues—remain frozen amid trade tensions and recession fears. HDFC Securities noted that "events of the past two months have introduced greater uncertainty regarding how fiscal 2026 will unfold," pointing to President Trump's renewed tariff threats creating client paralysis.
The mega-deal pipeline has dried up critically—fiscal 2025 saw muted large contract signings, which typically convert to incremental revenues 6-12 months later, meaning FY2026 top-line visibility remains weak. Kotak Institutional Equities warned that Indian IT firms face "net challenges from nascent GenAI adoption," as clients experiment with automation tools that threaten traditional outsourcing volumes.
Foreign investors have decisively rotated out of IT into domestic-facing sectors—financials, capital goods, and commodities now command higher FII allocations. This shift reflects a strategic pivot: FIIs prefer India's infrastructure-led domestic growth story over export-dependent tech services exposed to US GDP weakness (forecast trimmed to 1.4% for 2026). Month-to-date February, while FIIs remain net buyers overall (₹6,021 crore), their sectoral preference has excluded IT entirely, with yesterday's ₹853 crore net selling likely concentrated in tech stocks.
Earnings disappointments amplified the exodus—Infosys and Wipro reported flat-to-negative revenue growth expectations for FY2026, shattering recovery hopes that had briefly lifted valuations in late 2025. The sector trades at a 30% discount from its 2021 peak, yet analysts argue valuations haven't fully priced in the margin compression risk from slower utilization rates and wage inflation.
The rupee's 3% year-to-date depreciation to 90.57/USD provides a tailwind—since most contracts are dollar-denominated, every 1% INR fall boosts reported revenues by approximately 50-70 basis points. At current levels, this translates to a 2-2.5% topline cushion for Q4 FY2026 results. However, this benefit is transitory; RBI's active forex intervention limits further depreciation room.
The 30% valuation correction from peak levels has created selective value—the sector's forward P/E has compressed to 22-24x versus the 5-year average of 28x. For long-term investors, the 25,700-25,800 Nifty base (where IT stocks cluster) may offer accumulation opportunities, particularly in companies with strong cloud/cybersecurity exposure (40% of firms still plan to hire in GenAI pilots and cloud migration).
Nifty 50: Support at 25,752 | 25,705 | 25,654 | Resistance at 25,906 | 25,945 | 26,000 Bank Nifty: Support at 60,597 | 60,495 | Resistance at 60,864 | 61,000 | 61,325 Sensex: Support at 83,516 | 83,495 | Resistance at 83,802 | 84,461
"Four companies will commence commercial manufacturing of semiconductor chips in 2026, marking a significant milestone in India's push for self-reliance in critical technology." — Ashwini Vaishnaw, Union Minister for Electronics & IT, February 2, 2026
The market stands at a critical juncture with the 26,000 psychological level proving elusive despite four consecutive gains earlier this week. Analysts maintain that sustained breakouts above 26,000 could unlock 26,200-26,300 targets, but failure to hold current levels may trigger consolidation within the 25,500-26,000 band. The immediate 25,752 support (yesterday's low) and 25,500-25,400 zone (last week's breakout area and 20-day EMA) remain crucial downside cushions. With GIFT Nifty indicating a gap-down opening, traders should watch for buying interest at lower supports, particularly given DII buying strength and technical oversold conditions in IT stocks.
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.
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