SENSEX, NIFTY on February 13: Investors' wealth slumps by ₹7.02 lakh crore as IT and metals bleed; FIIs sell equities worth ₹7,395 crore

A weaker-than-expected earnings season and emerging pressure on technology stocks amid concerns about AI-led disruption weighed on investor sentiment.

In a volatile session, the 30-share BSE SENSEX tumbled 1,048.16 points, or 1.25%, to close at 82,626.76. During the day, the benchmark tanked 1,140.37 points, or 1.36%, to hit an intraday low of 82,534.55.

On the NSE, the broader NIFTY50 index ended at 25,471.10, down 336 points, or 1.30%.

The market capitalisation of BSE-listed firms eroded by ₹7,02,017.71 crore to ₹4,65,46,643.20 crore ($5.13 trillion).

Meanwhile, equity investors' wealth has been depreciated by ₹9,52,648.51 crore in the last two trading sessions.

FII data

On Friday, foreign institutional investors offloaded equities worth ₹7,395.41 crore, while domestic institutional investors bought stocks worth ₹5,553.96 crore, according to the exchange data.

"Indian equities on Friday came under significant selling pressure, weighed down by weak global cues and sharp declines in index heavyweights, particularly metals and IT stocks," Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

The fall in the benchmark was led by a steep correction following weaker-than-expected results, along with continued pressure in technology stocks amid concerns around AI-led disruption, he added.

"The sector continues to face headwinds amid rising concerns that rapid AI advancements could disrupt traditional service models and weigh on future revenue visibility," Khemka said.

All sectoral indices ended lower. Metal declined the most by 3.21%, followed by Realty and Commodities by 2.27% each, Utilities by 2.26%, Energy by 1.94%, Oil & Gas by 1.86%, Power by 1.85%, FMCG by 1.74%, and Services by 1.72%.

From the SENSEX pack, Hindustan Unilever, Eternal, Titan, Tata Steel, Adani Ports, Tata Consultancy Services, PowerGrid, Reliance Industries, Bharat Electronics Ltd, Asian Paints, Mahindra & Mahindra, HDFC Bank, and HCL Technologies were the major laggards.

On the other hand, Bajaj Finance and State Bank of India were the only gainers.

Commodities market

"In the commodities space, gold and silver prices declined up to 10% after the dollar strengthened on the back of stronger-than-expected US January jobs data, which reduced expectations of near-term interest rate cuts by the Federal Reserve," Khemka said.

The dollar gained further traction amid media reports that Russia may consider re-entering the dollar settlement system as part of a potential economic understanding with the US, adding additional pressure on precious metals.

A total of 2,960 stocks declined, while 1,253 advanced and 151 remained unchanged on the BSE.

The BSE SmallCap Select Index fell 1.90%, while the MidCap Select Index slipped 1.19%.