Indian markets are navigating a volatile landscape as the Q3 earnings season draws to a close today, **February 13, 2026**. Benchmark indices recently faced significant pressure, with the **Sensex** dropping **559 points** (0.66%) to settle at **83,675**, while the **Nifty 50** slid **146 points** (0.57%) to close near **25,807**. Volatility is rising slightly as the **India VIX** climbed **1.52%** to reach **11.73**. Despite the recent dip, the Sensex remains up approximately **9.9%** year-on-year, buoyed by strong domestic sentiment and a resilient macro economy. Institutional Flows and Inflation Market dynamics are being shaped by a tug-of-war between institutional investors. **Foreign Institutional Investors (FIIs)** have shown a cautious but selective buying trend, recording net purchases of **944 crore** in recent sessions. **Domestic Institutional Investors (DIIs)** continue to act as a primary cushion, contributing over **125 crore** in net buying. Investor focus is shifting heavily toward today's **CPI inflation** data. Retail inflation for January was recorded at **2.75%**, a figure that will guide future central bank policy. Sector Performance and Earnings The IT sector is experiencing a sharp downturn, triggered by global tech disruptions and weak performance in US-listed ADRs. Heavyweights like **Infosys** and **Wipro** saw declines of over **5-7%** in international markets, weighing heavily on domestic sentiment. In contrast, specific earnings reports are driving stock-level outperformance: * **ONGC** reported a **23%** profit jump to **11,946 crore**. * **Muthoot Finance** doubled its standalone profit to **2,656 crore**. * **Coal India** saw a **16%** decline in net profit to **7,166 crore**, yet declared an interim dividend of **5.50 per share**. * **Zaggle Prepaid** posted an **84%** profit surge. Global and Trade Tailwinds Sentiment is supported by progress in the **India-U.S. interim trade framework**. Reports suggest India may secure zero-duty access for textiles by late March, providing a competitive edge over regional peers. However, external factors remain fluid. Brent crude prices have nudged higher toward **$69.74 per barrel** amid renewed geopolitical concerns. While the rupee is currently trading near **90.52** against the dollar, strong domestic SIP inflows—totaling over **30,000 crore** in January—provide a robust liquidity floor for Indian equities.