The Economic Times

Infosys and Wipro ADRs surged despite a broader Nasdaq decline and weak domestic IT stocks. This resilience emerged as US inflation cooled to 2.4% in January 2026, potentially influencing Fed rate cut decisions. However, Indian IT stocks continue to face pressure from strong US employment data and AI-driven disruptions.

Wall Street is in the grip of disruption worries from AI. It first started with investors dumping shares of software companies but soon spread to sectors seen as vulnerable to automation, driving sharp losses in U.S. stocks this week.

U.S. interest rate futures on Friday raised odds of rate cuts by the Federal Reserve in June after a report that showed inflation rose less than expected in January.

Fortis Healthcare on Friday reported a 22 per cent year-on-year decline in consolidated profit after tax at Rs 197 crore in the third quarter ended December 2025.

Rivian's projection that its cheaper models would attract more buyers this year powered a near 20% stock jump on Friday, the latest sign of electric vehicle makers betting on affordable cars to revive sales after a key federal subsidy expired.

Consumer inflation in the United States cooled slightly more than expected in January, government data showed Friday, as energy prices dipped.

To boost ease of doing business, markets regulator Sebi on Friday proposed additional relaxations to reporting norms for stock brokers, including exempting certain demat accounts held by brokers who are also primary dealers from tagging requirements.

Wall Street's main indexes were muted on Friday, with communication services weighing as markets assessed softer-than-expected inflation data that kept Federal Reserve rate cut hopes intact.

BSE received Securities and Exchange Board of India approval to launch derivatives on the Focused Midcap Index. The product offers concentrated exposure to top 20 mid-sized firms via monthly futures and options, aligning with new single-expiry regulations.

National Commodity & Derivatives Exchange signed a long-term technology pact with Tata Consultancy Services to enter equity and derivatives trading. The 10-year deal will deploy a scalable, low-latency platform using TCS BaNCS and Quartz solutions to meet regulatory and market demands.

Morgan Stanley Investment Management is exploring shifting eight India healthcare assets into a continuation vehicle, targeting $500 million from investors. Investments include Omega Hospitals and RG Scientific, reflecting rising secondary-market activity, according to Jefferies Financial Group data.

Securities and Exchange Board of India approved IPO plans of Premier Industrial Corporation, Duroflex Limited, Virupaksha Organics, Hexagon Nutrition and Om Power Transmission. Issues include fresh equity and offer-for-sale components, with proceeds earmarked for expansion, capex, working capital and partial promoter exits.

Benchmark declines dragged the BSE Sensex sharply lower, with nine BSE 200 stocks hitting fresh 52-week lows. IT majors like Wipro, Tata Consultancy Services and Infosys led losses, reflecting sustained selling pressure across technology and select defensive counters.

Britain's FTSE indexes were subdued on Friday, tracking a sombre mood globally in a week that was marked by AI-disruption worries, while defence stocks got a lift as investors priced in greater European cooperation that could boost the sector.

State-owned Engineers India Ltd (EIL) reported an over 3-fold on-year jump in net profit to Rs 302 crore for the third quarter ended December 31, 2025, driven by strong execution and higher revenues.

Realtors' body Naredco on Friday said the government should promote affordable home segment and provide incentives for development of rental accommodation to achieve Housing for All and boost growth of real estate sector.

U.S. existing home sales tumbled to the lowest level in more than two years in January as falling inventory raised house prices.

U.S. stock index futures were trading flat on Friday after an AI-led selloff, with investors staying on the sidelines ahead of inflation data that could provide more clarity on the Federal Reserve's rate-cut outlook.

Indian bond market participants say that the market will need further support, particularly via buybacks, to cool yields significantly, after government bonds surrendered the gains triggered by a surprise debt switch.

TCS, SpiceJet, Bajaj Finance, Wipro, HUL, Hindalco, Coforge, and Engineers India led Fridays market swings as IT, consumer, and energy stocks faced sharp volatility.

Senco Gold & Diamonds reported a strong 39% same-store sales growth in Q3 FY26, driven by robust festive and wedding demand and significant gold price appreciation. Despite a 3% dip in volumes, the company maintained customer engagement through budget-friendly jewelry options. Senco targets 18-20% annual growth, with FY26 revenues projected at 8,000 crore.

Hindustan Unilever Ltd secured approvals from BSE and National Stock Exchange of India to list demerged ice-cream arm Kwality Wall's on February 16. Shareholders receive one share per holding, creating Indias first pure-play listed ice-cream firm backed by The Magnum Ice Cream Company.

Ola Electric Q3 Results: Ola Electric narrowed Q3 losses to Rs 487 crore, with revenue down 55% to Rs 470 crore and deliveries falling to 32,680 units. The company cited a structural reset, improved operating leverage, completed capex, and a strong long-term growth outlook, targeting Rs 15,00020,000 crore in revenue over the coming years.

The Indian rupee was little changed on Friday as pressure from weak local stocks and elevated interbank dollar demand met likely central bank intervention to defend the currency, traders said.

European shares slipped on Friday, tracking a sombre global mood as uncertainties about artificial intGlobal Markets | European shares slip as AI-disruption worries, mixed earnings weigh lligence-related disruptions persisted, while investors also assessed mixed corporate earnings from companies such as Safran and L'Oreal. The pan-European STOXX 600 index was down 0.3% at 616.58 points, as of 0821 GMT, and is now on track to end the week flat.

Despite a sharp IT selloff, Axis Direct backs HCL Technologies, Tech Mahindra, Persistent Systems, Coforge, and Bharti Airtel, citing strong deal wins, AI momentum, and earnings growth, projecting up to 67% upside across these conviction buys.

Historical data debunks the Friday-the-13th myth on Dalal Street. The Indian market closed higher in 9 of the last 16 such sessions (56.25%). Gains were notable at times: Nifty 50 jumped 4% on March 13, 2020, and rose about 1% on September 13 and December 13, 2019, as well as on August 13, 2021, and December 13, 2024. However, today Sensex and Nifty slipped 1%, dragged by IT stocks, erasing Rs 4.62 lakh crore in market value.

Market veteran Madhusudan Kela advises investors to focus on wealth creation and ignore market noise, viewing volatility as an opportunity. He emphasizes the importance of identifying resilient Indian entrepreneurs and the power of compounding for long-term gains, highlighting the growing role of domestic retail investors.

Indian IT stocks are experiencing panic selling, but experts see this as a buying chance. Artificial intelligence will not destroy the IT services sector. Instead, it will create new opportunities. Companies building AI infrastructure are poised for significant growth. Investors should look for quality assets at attractive prices as AI integration reshapes the technology landscape.

India is deepening its global trade ties, strengthening its long-term growth foundation. Yet markets move on earnings visibility and capital flows, creating short-term uncertainty. Rupee volatility and cautious FII behaviour are likely to keep equities unsettled in 2026. The shift toward a more market-driven currency improves credibility but adds near-term fluctuations. Investors should prioritise time horizons and disciplined allocation over reactive moves. Blending long-term equities with stab

Mutual funds poured into nine stocks in January 2026, with heavy share additions signaling strong institutional demand.

Info Edge Q3 Results: The company announced an interim dividend of Rs 2.40 per share for FY26 and fixed Friday, February 20, 2026, as the record date. The dividend will be paid on or after March 9, 2026.

Federal Realty Investment Trust forecast 2026 funds from operations above Wall Street expectations on Thursday, as it anticipates strong leasing demand and higher rentals for its grocery-anchored shopping centers

Real estate stocks, particularly those exposed to Bengaluru, saw a significant plunge of up to 4% on Friday. This sell-off is driven by investor concerns over potential AI disruption in the IT sector, which could negatively impact demand for property.

Bitcoin is trading near $66,000, consolidating after a rebound from $60,000 amid renewed selling pressure and global risk-off sentiment. Analysts expect a near-term move between $60,000-$70,000 as the market absorbs liquidity, with CPI data on Friday potentially triggering the next directional move.

On Friday, Japan's Nikkei index took a hit, largely swayed by the slipping fortunes of Wall Street. The noteworthy drop in SoftBank Group created ripples across the market. Conversely, chip manufacturers managed to shine, while Nissan Motor's stock soared on its optimistic financial forecast. In contrast, Inpex saw a setback, with a gloomy projection for its annual net earnings.

Tata Consultancy Services (TCS) shares plummeted to a five-and-a-half-year low amid fears of AI-led disruption, with its market capitalization also hitting a multi-year trough. The IT rout intensified following a plunge in Infosys and Wipro ADRs, as a new AI tool for legal tasks sparked concerns about industry-wide vulnerability.

Despite a recent global AI-driven market shift, domestic equities are poised for recovery. Improved Indian macros, including interest rate and tax benefits, are creating a constructive outlook. Experts highlight the need for renewed earnings growth, with banking and consumer discretionary sectors expected to lead the charge. Valuations are seen as reasonable, with a focus on business momentum over minor corrections.

AI's impact on India's IT sector is unfolding in two phases: near-term automation causing deflationary pressure, followed by longer-term business transformation creating inflationary opportunities. Analyst Kumar Rakesh suggests markets may be overreacting to the front-loaded disruption, with a potential neutral long-term outcome.

Investors are seeking new opportunities after market corrections. Sameer Dalal suggests focusing on domestic sectors like consumption, cement, and discretionary plays. He sees a revival in discretionary consumption and tourism. The cement sector is also highlighted as an overlooked opportunity. Dalal believes India's consumption revival story offers compelling investment potential for the next one to two years.

Indian IT stocks have seen significant drops, losing Rs 5.7 lakh crore. JP Morgan believes these firms are essential plumbers for technology. They are now offering deep value opportunities. Dividend yields are at crisis-level highs. JP Morgan recommends buying Infosys and TCS, seeing limited downside and potential upside.

Gaudium IVF plans to raise Rs 150-200 crore via IPO, expected to open February 20, becoming the first in its sector to go public. The offering includes a fresh issue for expansion and an offer-for-sale by the promoter. Proceeds will fund new centers, debt repayment, and general corporate needs.

An options strategy buying straddles on U.S. companies ahead of earnings has yielded exceptional returns of 45% over the past four weeks, significantly outperforming historical averages. This success stems from heightened stock volatility following earnings announcements, driven by investor focus on economic navigation and company guidance, alongside previously subdued volatility expectations making options cheaper.

Federal Reserve Governor Stephen Miran cautions that current monetary policy may be too restrictive. He believes inflation is not a major concern, citing subdued shelter inflation. Miran advocates for looser policy to support the labor market as supply conditions improve. This stance contrasts with broader market expectations for rate cuts, influenced by recent strong labor data and fiscal stimulus.

Indian government bond yields saw early declines reversed as traders took profits after a rally, awaiting new auction supply. The benchmark 10-year yield edged higher, hovering around 6.67%. This comes as the government manages debt ahead of significant maturities, while retail inflation returned to the central bank's target band.

The rupees six-month slide, driven by U.S. tariffs and policy uncertainty, reversed sharply after signals of a friendlier trade deal. While improved sentiment, sectoral gains, and potential foreign inflows offer support, unresolved agreement details, oil dynamics, gold prices, and RBI positioning ensure USD/INR remains volatile, with risks still tilted toward weakness in 2026.

Muthoot Finance shares saw a significant drop despite a sharp rise in third-quarter earnings. The company reported nearly doubled net profit and a substantial increase in total income and assets under management. Analysts from Jefferies, CLSA, and Nuvama have maintained positive ratings, citing strong performance and growth prospects.

Insurance is becoming a silent backbone of Indias growth, shielding citizens from financial shocks and reinforcing freedoms beyond constitutional rights. By providing timely support and enabling faster recovery, insurance eases rising economic and climate-related risks. Stronger coverage for households, MSMEs, and gig workers is vital to building national resilience on the path to Insurance for All by 2047.

February 2026 marks a potential turning point for smallcap investors after a difficult 2025. A strong Q3 earnings season, coupled with a positive shift in global trade sentiment following India's trade deals with the US and EU, has fueled a rally. This suggests a potential broader recovery in the smallcap segment as valuations reset and foreign investor sentiment improves.

Market expert Ajay Bagga advises caution on Indian IT due to AI disruption, favoring a constructive view on metals and long-term optimism for defence and autos. He stresses differentiating short-term volatility from structural trends, highlighting AI's rapid evolution and the need for concrete IT use cases before investor confidence returns.