On a Friday morning in February 2026, Indian equity markets entered their second consecutive day of retreat, with the Sensex and Nifty slipping under the weight of global uncertainty and the quiet dread that precedes a central bank's verdict. The Reserve Bank of India's Monetary Policy Committee was set to speak, and investors — burned by foreign institutional selling and a worldwide unwinding of the artificial intelligence trade — chose stillness over conviction. What unfolded in Mumbai was not an isolated tremor but a local expression of a planetary mood: the long bull run in technology had
Sensex, Nifty slip ahead of RBI decision as global tech rout weighs
Foreign investors turned sellers again, betting on further declines ahead
Mark
Why did Indian markets fall when the RBI hadn't even announced its decision yet?
Mimi
Investors were already nervous. They were waiting for the RBI to speak, but while they waited, they watched U.S. tech stocks collapse. That kind of global weakness tends to spill over before any domestic news even lands.
Mark
So the foreign investors who bought so aggressively on Tuesday—they just reversed course?
Mimi
Almost completely. They went from buying 5,236 crore rupees in a single day to selling 2,150 crore just three days later. That's not a small shift. It suggests they were spooked by something—probably the tech selloff in America.
Mark
What's the significance of them building short positions in derivatives?
Mimi
It's a bet that prices will fall further. When foreign money starts shorting, it's a signal they expect more pain ahead. It's not just selling what they own; it's positioning for a decline.
Mark
The smaller companies fell harder than the large ones. Why?
Mimi
Smaller caps are riskier. When fear rises, money flows toward safety—the big banks, the established names. The smaller companies get abandoned first.
Mark
Is there any reason to think this reverses?
Mimi
The RBI could help if it signals growth is still strong and the economy is solid. But that depends on what they actually say. And globally, it depends on whether the tech selloff stabilizes or keeps going.
Mark
So India's fate is tied to what happens in Silicon Valley?
Mimi
For now, yes. The AI trade unwinding is global. India benefits if that unwinding eventually stops and money starts looking for value elsewhere. But until it does, the weakness abroad pulls India down with it.
Der Puls
- Indian benchmarks fell for a second straight session, with tech giants like Infosys and TCS shedding up to two percent while the broader smallcap index dropped a full percentage point.
- Foreign institutional investors reversed course sharply, offloading Rs 2,150 crore in a single day after having poured in Rs 5,236 crore just 72 hours earlier — one of the largest single-day inflows since October.
- Wall Street's pain was contagious: the Dow shed 592 points, the Nasdaq slid nearly six percent from its recent peak, and Asia's markets followed in a broad, unforgiving selloff that hit South Korea hardest with a five-percent plunge.
- Commodity markets joined the retreat — crude oil, bitcoin, silver, and even gold showed weakness, signaling a risk-off mood that extended well beyond equities.
- The RBI's anticipated rate hold offered little excitement, but investors were listening for tone — a dovish signal or upward growth revision could be the reassurance needed to steady nerves.
- Analysts flagged rising FII short positions in derivatives as a technical warning, suggesting the near-term path remains uncertain even as domestic institutions quietly stepped in to absorb some of the selling.
On a Friday morning in February 2026, Indian equity markets entered their second consecutive day of retreat, with the Sensex and Nifty slipping under the weight of global uncertainty and the quiet dread that precedes a central bank's verdict. The Reserve Bank of India's Monetary Policy Committee was set to speak, and investors — burned by foreign institutional selling and a worldwide unwinding of the artificial intelligence trade — chose stillness over conviction. What unfolded in Mumbai was not an isolated tremor but a local expression of a planetary mood: the long bull run in technology had begun to exhale, and markets from Seoul to Sydney were feeling the breath.
Indian stock markets opened Friday with a familiar heaviness. The Sensex slipped below 83,100, down more than 200 points, while the Nifty 50 fell past 25,600 — a second straight session of losses for both benchmarks. Investors were holding their breath ahead of the Reserve Bank of India's Monetary Policy Committee announcement, and the global backdrop offered little comfort.
The selling was not evenly distributed. Technology stocks bore the brunt — Infosys, TCS, Tech Mahindra, and HCL Tech all fell between one and two percent. Financial names showed more resilience, with Bajaj Finance, Kotak Mahindra Bank, and ICICI Bank managing modest gains. Smaller-cap segments fared worse, with the Nifty Smallcap 100 dropping a full percent.
What was happening in India mirrored something larger. U.S. markets had sold off for a second consecutive session, with the Dow Jones falling 592 points and the Nasdaq declining roughly six percent from its recent peak — a sustained unwinding of the artificial intelligence trade that had dominated global markets for months. Asia followed: South Korea's Kospi plunged five percent, Japan's Nikkei extended its losing streak, and Hong Kong and Australia both fell sharply.
Foreign institutional investors, who had staged a dramatic comeback just days earlier — buying a net Rs 5,236 crore on Tuesday alone — turned sellers again, offloading Rs 2,150 crore on February 5. Analysts noted FIIs were building short positions in derivatives, a signal of near-term caution. Domestic institutions stepped in to buy Rs 1,130 crore, but the foreign reversal carried the louder message.
Commodity markets reflected the same risk-off mood. Brent crude fell toward its first weekly decline in weeks. Bitcoin slipped below 64,000 dollars. Silver corrected sharply. Even gold showed signs of fatigue.
Strategists were watching two things: the RBI's tone — a dovish statement or upward growth revision could restore some confidence even without a rate cut — and the trajectory of global tech stocks, whose continued weakness might eventually redirect capital toward Indian markets. For now, the market sat suspended between global pressure and the quiet hope that its own policymakers might offer a steadying word.
Indian stock markets opened Friday morning with a familiar heaviness. The Sensex slipped below 83,100, down more than 200 points. The Nifty 50 fell past 25,600, losing over 80 points. This marked the second straight day of declines for both benchmarks, and the caution was palpable. Investors were holding their breath ahead of the Reserve Bank of India's Monetary Policy Committee announcement scheduled for later that day, and the global backdrop offered little comfort.
The weakness was not evenly distributed. Technology stocks bore the brunt of the selling pressure. Infosys, TCS, Tech Mahindra, and HCL Tech all fell between one and two percent. NTPC and BEL also slid. On the other side, financial names showed some resilience—Bajaj Finance, Kotak Mahindra Bank, ICICI Bank, and Bharti Airtel managed gains of up to 1.5 percent. The smaller-cap segments fared worse. The Nifty Smallcap 100 index dropped one percent, while the Midcap 100 fell 0.35 percent.
What was happening in India was a mirror of something larger unfolding globally. U.S. markets had sold off for a second consecutive session Thursday, with investors unwinding positions in technology stocks and bitcoin. The Dow Jones fell 592 points, or 1.2 percent, closing at 48,908. The S&P 500 dropped 1.23 percent and slipped into negative territory for the year. The Nasdaq, heavy with tech exposure, fell 1.59 percent to 22,540. At their worst moments, the indices had fallen even further—the Dow down nearly 1.4 percent, the S&P 500 and Nasdaq each off as much as 1.9 percent. The tech-heavy Nasdaq had declined roughly six percent from its recent peak, a sustained pressure that reflected a broader unwinding of the artificial intelligence trade that had dominated markets for months.
Asia followed Wall Street lower on Friday morning. South Korea's Kospi plunged as much as five percent, the region's steepest decline. Japan's Nikkei 225 fell 0.57 percent, marking its third consecutive day of losses. Hong Kong's Hang Seng Index dropped about two percent at the open. Mainland China's CSI 300 edged lower. Australia's S&P/ASX 200 fell 1.84 percent. The selloff was broad and unforgiving.
Foreign institutional investors, who had staged a strong comeback just days earlier, turned into sellers again. On February 5, FIIs sold a net 2,150 crore rupees worth of Indian equities, snapping a two-day buying streak. Domestic institutional investors stepped in to buy 1,130 crore rupees, but the foreign selling was the more significant signal. Analysts noted that FIIs were building higher short positions in derivatives, a technical indicator suggesting near-term weakness ahead. The reversal was sharp. Just three days earlier, on Tuesday, FIIs had been net buyers of 5,236 crore rupees—the largest single-day inflow since October 28—after an India-U.S. trade deal had removed a major overhang from the market.
Commodity markets also reflected the risk-off mood. Crude oil futures extended their losses Friday, tracking toward their first weekly decline in weeks as concerns about Middle East supply disruptions eased. Brent crude fell 0.74 percent to 67.05 dollars a barrel. U.S. West Texas Intermediate crude dropped 0.82 percent to 62.77 dollars. Even traditionally safe-haven assets showed cracks. Bitcoin slipped below 64,000 dollars. Silver corrected sharply to around 71 dollars from recent highs near 121 dollars. Gold, despite elevated geopolitical uncertainty, also showed signs of weakness.
Investment strategists were watching two things closely. First, the RBI's decision later that day. Markets broadly expected the central bank to hold the repo rate steady, with no rate cut anticipated. But a dovish tone in the policy statement or an upward revision to growth projections for the fiscal year ahead could help restore confidence. Second, the trajectory of artificial intelligence stocks globally. A continued unwinding of the AI trade could ultimately prove supportive for Indian markets over the medium term, analysts suggested, but further weakness in global tech would be needed to confirm that shift. Until then, the market was caught between two forces: the pull of global weakness and the hope that India's own policy makers might offer some reassurance.
Bemerkenswerte Zitate
Global markets are gripped by risk-off sentiment, with bitcoin slipping below 64,000 dollars and silver correcting sharply from highs near 121 dollars— VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited
A dovish tone in the policy and upward revision to FY27 growth projections could help improve market sentiment— Market analysts
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