Indian benchmark indices faced significant downward pressure on **February 12, 2026**, as a combination of global macroeconomic shifts and sector-specific disruption triggered widespread selling. The **S&P BSE Sensex** declined **376.48 points** or **0.44%** to settle at **83,862.16**, while the **Nifty 50** fell **116.65 points** or **0.45%** to finish at **25,838.15**. Investor sentiment was dampened by stronger-than-expected **U.S. labor market data**, which showed Nonfarm Payrolls rising by **130,000** in January. This robust performance has caused markets to pivot, with the probability of a Federal Reserve rate cut in March now being largely dismissed. Financial markets are pricing in a **94%** likelihood that rates will remain unchanged, pushing potential easing further into the second half of the year. The **Nifty IT index** bore the brunt of the sell-off, plunging **4.55%** in a single session. This move extends a brutal start to the year for the tech sector, which has seen the index tank over **11%** in **2026** so far. The latest trigger is the launch of **Anthropic’s Claude Cowork**, an agentic AI tool capable of automating complex, multi-step tasks traditionally handled by offshore delivery teams. Market valuation for Indian IT majors saw a massive erosion, with nearly **Rs 2.5 lakh crore** wiped out over the last three trading sessions. High-profile stocks led the decline: **Infosys** fell **4.67%**, **Tech Mahindra** dropped **4.39%**, and **TCS** slipped **4.21%**. Analysts have labeled the shift a **SaaSpocalypse**, as AI agents begin to replace human-led software maintenance and document processing. While technology struggled, internal market rotation provided minor support to other sectors. The **Nifty Private Bank** index managed a marginal gain of **0.11%**, led by **ICICI Bank** which rose **1.35%**. **FMCG** and **Auto** stocks also showed relative resilience, as investors moved capital away from growth-oriented tech and into defensive value segments. The broader market reflected a weak breadth, with **1,986 shares** declining compared to **1,241** advances on the BSE. Mid-cap and small-cap indices underperformed the benchmarks, dropping **0.77%** and **0.86%** respectively. Foreign Portfolio Investors (FPIs) remain cautious, contributing to the volatility as they reassess the impact of AI on the **$250 billion** Indian outsourcing model. The domestic currency and bond markets also reacted to the shifting global outlook. The **Indian Rupee** hovered around **90.49** against the US Dollar, while the yield on the **10-year benchmark federal paper** rose to **6.727%**. With **U.S. CPI inflation** data due later this week, traders are bracing for continued volatility in the near term.