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Indian stock markets suffered their worst session in months on Friday, February 13, with the Sensex crashing 1,048 points to close at 82,626.76 as global concerns over artificial intelligence disruption sent shockwaves through Asia’s trading floors.
Market Carnage Across All Segments
The benchmark Nifty 50 tumbled 336 points to end at 25,471.10, marking a 1.30% decline that dragged the index below the critical 25,500 level for the first time in recent sessions. Mid and small-cap segments bore the brunt of selling pressure, with the BSE 150 MidCap Index plummeting 1.58% and the BSE 250 SmallCap Index falling 1.50%.
The market rout erased approximately ₹7 lakh crore from investor wealth in a single session, as total market capitalisation of BSE-listed firms dropped to ₹465 lakh crore from ₹472 lakh crore. The volatility index India VIX spiked over 13% to breach the 13 mark, reflecting heightened investor anxiety.
Only five stocks managed to close in positive territory within the Nifty 50, led by Bajaj Finance with a 3.09% gain, followed by Eicher Motors (1.56%), SBI Life Insurance Company (0.84%), SBI (0.33%), and Cipla (0.13%).
Sectoral Bloodbath Led by Metals and IT
Every sectoral index ended in red, with Nifty Metal leading losses at 3.31%, followed by Realty (2.23%), FMCG (1.90%), and Oil and Gas (1.88%). The IT sector, already under pressure from AI disruption concerns, declined 1.44%, while Consumer Durables and Private Bank indices fell 1.29% and 1.02% respectively.
Hindalco Industries topped the losers list with a 6.08% decline, while Hindustan Unilever dropped 4.34% and Eternal fell 4.30%. Adani Enterprises and ONGC rounded out the top five losers with declines of 3.83% and 3.20% respectively.
Global AI Fears Grip Markets
“Domestic equities ended lower following a highly volatile session, weighed down by weak global cues ahead of the upcoming US inflation data,” said Vinod Nair, Head of Research at Geojit Investments Limited. He noted that renewed AI-driven disruption fears are weighing on risk appetite, with markets worried that Indian IT firms dependent on labour arbitrage models may face tougher competitive pressure than their Nasdaq peers.
The selloff comes despite historical data showing Indian markets have actually performed well on Friday the 13th, closing higher in 9 of the last 16 such sessions. However, today’s performance bucked that trend as global uncertainties over AI’s impact on technology and other sectors kept investors on edge.
Technical Outlook Turns Bearish
Technical analysts warn of further weakness ahead. Rupak De from LKP Securities noted the index has slipped below its 20-day moving average and breached the 38.2% Fibonacci retracement level. With the Nifty closing below the key 25,500 support, he sees potential for a decline toward 25,000 in the short term, with immediate resistance around 25,800.
Sources: Economic Times, Mint
