Why Is Stock Market Falling Today? Key Factors Behind Sensex, Nifty Decline On February 13

Why Is Indian Share Market Falling Today? Indian equity benchmarks extended their losses on Friday, mirroring weakness in global markets, as a sharp sell-off in technology stocks dampened investor sentiment.

The BSE Sensex opened gap-down at 83,011, sliding 664 points or 0.79 per cent, while the Nifty50 fell 227 points or 0.88 per cent to 25,580 in early trade. Broader markets also remained under pressure, with the Nifty MidCap index declining 1 per cent and the Nifty SmallCap index slipping 1.3 per cent.

IT Rout Weighs Heavily

The primary drag on the market was the steep correction in IT stocks. The Nifty IT index plunged 5 per cent, led by a 5.6 per cent drop in Infosys. TCS, HCL Tech, LTIMindtree, Coforge and Wipro were also among the top losers. The Nifty Metal

index fell 2 per cent, adding to the weakness.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments, markets have entered a turbulent phase that may trigger panic among investors even as it creates opportunities.

“The sell-off in AI stocks in US markets was expected, but the timing and magnitude were uncertain. The 2.04 per cent decline in Nasdaq is not a crash. However, if the downtrend persists, it could weigh further on US markets,” he said.

Vijayakumar noted that from India’s perspective, the unwinding of the global AI trade — in which Indian markets did not fully participate last year — could eventually be positive. “What is unsettling the Indian market now is the massive sell-off in IT stocks, the second-largest profit pool of India Inc. The real impact of the ‘Anthropic shock’ on the IT sector is yet to be assessed. Panic selling at this stage may not be advisable. Investors may wait for clarity,” he added.

He suggested that the ongoing turbulence could be used to accumulate high-quality growth stocks, especially those that delivered strong Q3 results. Auto stocks, he said, are likely to remain resilient given solid earnings and growth prospects.

Weak Global Cues

Global markets offered little comfort. Asian equities traded lower after renewed concerns over AI-led disruption in the US dragged Wall Street benchmarks down. The S&P 500 logged its third straight session of losses.

Japan’s Nikkei 225 declined 1.69 per cent, South Korea’s KOSPI slipped 0.5 per cent, and Australia’s S&P/ASX 200 fell 1.3 per cent in early trade.

On Thursday, US markets ended sharply lower as investors rotated out of technology stocks while assessing a heavy stream of economic data and earnings. The S&P 500 fell 1.57 per cent, the Nasdaq Composite dropped 2.03 per cent, and the Dow Jones Industrial Average declined 1.34 per cent.

With IT stocks under pressure and global sentiment fragile, market participants are likely to remain cautious in the near term.