From Trade Deal Euphoria to AI-Led Sell-Off: A Week That Repriced Risk on Dalal Street
If you felt confident at the start of last week, you weren’t alone. Dalal Street opened February 9–13, 2026, on a wave of optimism, buoyed by excitement around the India–US trade deal framework. There was talk of stronger exports, improved capital flows, and renewed foreign investor interest. For a brief moment, it seemed the bulls had found fresh momentum.
But markets have a way of testing conviction. By “Friday the 13th,” the mood had shifted sharply. A technology sell-off on Wall Street, triggered by fears that rapid advances in artificial intelligence could disrupt traditional IT services models, spilled into Indian equities. IT heavyweights bore the brunt, foreign investors turned cautious, and strong US jobs data further dimmed hopes of early rate cuts. Gains vanished almost as quickly as they appeared.
So, let’s take a look back at everything that happened on Dalal Street this week – from trade-driven optimism to AI-fuelled anxiety, and the sharp reversal that caught many off guard.
Stock Market On Friday, 13 February: When Dalal Street Lost Its Nerve
Dalal Street faced its most difficult day on Friday. The Sensex decline, together with the Nifty drop at crucial points, destroyed the initial trading optimism. The IT sector experienced the biggest decline as global AI concerns affected its performance, and US data results reduced rate-cut expectations, leaving investors uncertain until the market closed.
BSE Sensex
- Weekly Start: 83,674.92
- Weekly Close: 82,626.76
- Friday Fall: -1,048 points (-1.25%)
Nifty 50
- Weekly Start: 25,807.20
- Weekly Close: 25,471.10
- Friday Fall: -336 points (-1.30%)
- Slipped below 25,500 psychological mark
Market Breadth
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2,784 declines vs 1,236 advances on Friday
Sensex Rollercoaster: Daily Openings and Closings From February 9-13, 2026
As Dalal Street ended the week on a sour note, with the Sensex tumbling over 1,000 points on Friday. Early optimism faded amid global tech jitters and AI fears, leaving investors cautious. From gains to losses, the benchmark mirrored the rollercoaster sentiment gripping both domestic and international markets this week.
| Date | Opening | Closing |
|---|---|---|
| Feb 9, 2026 | 83,755.40 | 84,346.04 |
| Feb 10, 2026 | 84,346.04 | 84,222.69 |
| Feb 11, 2026 | 84,279.85 | 84,199.37 |
| Feb 12, 2026 | 83,911.16 | 83,625.62 |
| Feb 13, 2026 | 82,902.73 | 82,626.76 |
Nifty 50’s Weekly Rollercoaster: Opening Highs, Friday Lows From February 9-13, 2026
Nifty 50 experienced a turbulent week, opening strong but giving up early gains by Friday. The index slipped below the crucial 25,500 mark amid global AI fears and cautious US economic signals. Investors watched nervously as tech-heavy stocks weighed down the benchmark, reflecting uncertainty and the volatile mood on Dalal Street.
| Date | Opening | Closing |
|---|---|---|
| Feb 9, 2026 | 25,835.60 | 25,918.40 |
| Feb 10, 2026 | 25,918.40 | 25,916.45 |
| Feb 11, 2026 | 25,981.90 | 25,942.90 |
| Feb 12, 2026 | 25,836.05 | 25,796.95 |
| Feb 13, 2026 | 25,571.15 | 25,471.10 |
Sectoral Winners & Losers: Who Surfed the Waves and Who Sank
This week on Dalal Street, Nifty IT took a nosedive-its worst since March 2020-thanks to AI jitters. Metals, Realty, Energy, and FMCG couldn’t catch a break either. PSU Banks, led by SBI, tried to play hero early on, but by Friday, red was the color of the week.
| Sector | Weekly Performance | Notes / Highlights |
|---|---|---|
| Nifty IT | -6.91% | Biggest loser; worst week since March 2020; hit by global AI-disruption fears |
| Nifty Metal | -3.21% | Decline due to disappointing Q3 results and trade tensions |
| Nifty Realty | -2.27% | Broader market risk-off sentiment dragged down |
| Nifty Energy | -1.94% | Weakness in global crude and profit booking |
| Nifty FMCG | -1.74% | HUL slump weighed on index |
| Nifty PSU Bank | +2.5% to +4% | Early-week outperformer, led by SBI |
Top Weekly Gainers & Losers
So, This week saw SBI and Kalyan Jewellers shine, while AI fears and weak earnings dragged Muthoot Finance, Hindalco, and major IT heavyweights into sharp losses, highlighting volatile market sentiment.
- Large-Cap Gainers: SBI (+7.6%), Bajaj Finance (+3%)
- Mid-Cap Gainers: Kalyan Jewellers (+15%)
- Small-Cap Gainers: Signatureglobal (+5.9% on Friday)
- Top Losers: Muthoot Finance (-11.8%), Hindalco (-5.7%), Infosys, TCS, Tech Mahindra
Stock Market Shocker: The 48-Hour Meltdown, IT Shock That Shook Dalal Street
Whoa, Dalal Street went full drama on February 12–13! The Nifty IT index nosedived nearly 8% in just 48 hours, thanks to the “Anthropic Shock.” US tech stocks tumbled, and suddenly, everyone feared AI might replace coders overnight.
Infosys (-6.2%), TCS (-5.4%), and Wipro (-7.1%) led the stampede, while mid-cap IT names like Mastek and eClerx tanked 10–13%. Even the usually steady HCL Tech couldn’t escape the carnage. Investors were glued to screens, hearts racing, as portfolios bled red. Two days of relentless panic turned a normally calm sector into a rollercoaster of chaos-and left traders wondering, “Is this AI innovation or pure market terror?”
Why It Happened?
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Structural Fears: AI seen as a replacement rather than a productivity tool.
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US Guidance: Clients may freeze tech spending in Q1 2026.
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FII Exit: Foreign investors sold IT stocks, seeking defensive assets.
Key Highlights:
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Nifty IT: -8% in two days
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Infosys: -6.2%, TCS: -5.4%, Wipro: -7.1%
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Mid-cap IT: 10–13% losses
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HCL Tech: -4.8%
Analysts warn the sector may face a U-shaped recovery instead of a quick bounce.
Global Stock Market: Wall Street in a Whirlwind- The AI Re-Rating Frenzy
Even Wall Street experienced extreme fluctuations throughout the entire week. The buzzword? “AI Re-rating.” Investors woke up to a chilling reality: AI isn’t just helping humans-it might be replacing them. The tech-heavy Nasdaq experienced a worldwide panic reaction after Anthropic introduced its new AI automation technology.
The Nasdaq Composite fell 2.10%, while the S&P 500 slid 1.39%, and the normally stable Dow Jones Industrial Average experienced a 1.23% decline. The market showed downward movement as traders experienced losses while their screens displayed red numbers, and market experts predicted a $285 to $300 billion market value loss. The entire technology sector, from software services to major tech companies, experienced a sense of vulnerability. The frenzy showed people how innovation brings about both exciting progress and frightening results.
Key Highlights of Wall Street’s AI Week:
- Nasdaq Composite: -2.10% – Tech-heavy rout
- S&P 500: -1.39% – Broader market dragged down
- Dow Jones: -1.23% – Record highs early, but panic late
- Global AI Panic: $285–$300 billion wiped from tech & software sectors
- Investor Sentiment: Shifted from excitement to fear in 48 hours
Global Market Performance
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Nikkei 225: +4.96%
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STOXX Europe 600: +0.09%
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Hang Seng: Flat
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Brent Crude: $62.80/bbl (-1.2%)
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US 10-Year Yield: 4.05%
Weekly Commodity Snap: Currency Holds Steady While Gold and Silver Slide Amid Trade Deal Optimism, Crude Oil In Line
- Indian Rupee (INR): Closed at ₹90.56/USD; weekly high ₹90.92 (Feb 12), low ₹90.32 (Feb 8). Supported by new U.S.-India trade deal.
- US Dollar Index (DXY): Minor weekly decline; ended at 96.88.
- Gold: Fell 1.5–3%; 24K gold in India closed ₹1,56,500–₹1,58,000 per 10g; spot gold ~$4,967/oz.
- Silver: Dropped 5% on Friday; Delhi price ₹2,55,000–₹2,58,940/kg; spot silver recovered to ~$76.76/oz after mid-week 11% crash.
- Inflation Impact: January US CPI at 2.4% vs. expected 2.5%, easing economic pressure.
- Crude Oil Performance
- WTI Crude: Peaked at $65.83 (Feb 11), closed ~$62.81–$62.89 per barrel.
- Brent Crude: Hit $69.85 (Feb 11), settled ~$67.73–$67.75 per barrel.
- Indian Market: Fell ~2% domestically; ~₹5,700 per barrel (Feb 13).
- Key Drivers:
- Oversupply Concerns: IEA projects 3.7 million bpd annual surplus in 2026, pressuring prices mid-week.
- Geopolitics: U.S.–Iran nuclear talks created volatility; slight recovery Friday as resolution delays eased supply fears.
- Trade Shifts: February data shows Saudi Arabia surpassing Russia as India’s top crude supplier, aided by evolving U.S.–India trade ties.
Monday Mood on Dalal Street: Bounce Back or Another Rollercoaster?
Dalal Street’s traders need to relax after a week that brought them more excitement than their trading activities. The markets experienced a downturn from their peak trade-deal prices as AI-driven panic caused the Sensex and Nifty indexes to drop, while IT stocks and commodity prices moved unpredictably, and gold and silver lost value, yet the rupee maintained its position. Investors will see two possible outcomes on Monday because they still remember Friday’s stock market decline from the previous week. The current week at Dalal Street, which includes upcoming market movements, requires traders to control their emotions and trust their instincts for success.
(With Inputs)