Why did the market fall sharply this week?

The slide followed FII selling of about Rs 7,400 crore, a sharp 1,000-point drop in the Sensex, and weakness in global tech tied to AI jitters. Elevated positioning in IT magnified moves. Domestic data and global cues then kept risk appetite in check, pushing traders to focus on banks and autos.

How do FII flows affect Sensex and the rupee?

Large FII outflows often pressure equities and can weigh on the rupee, especially when global yields rise or risk sentiment cools. This can tighten local financial conditions. Conversely, steady inflows tend to support valuations and currency stability. Watch provisional flow data and USD-INR to gauge near-term direction.

Are IT stocks attractive after the drop?

Near term, caution is prudent. Global tech remains choppy, client budgets look cautious, and visibility on large deals is uneven. Consider waiting for cleaner guidance, improving order intake and supportive currency trends. If you buy, scale in slowly and focus on leaders with resilient margins and strong cash generation.

What should traders watch in intraday action today?

Track opening volatility, options open interest shifts, sector breadth and moves around data releases. Use VWAP and recent swing levels for entries and exits. If global cues stay weak, sell on strength in underperforming IT and buy on dips in relative leaders like banks and select autos with tight stop-losses.

Global Market Insights

February 16: Dalal Street Today—AI Jitters, FII Outflows Weigh

ByHuzaifa Zahoor February 16, 2026February 16, 2026

In stock market news today, Dalal Street opens cautious after a 1,000-point Sensex drop led by FII selling of Rs 7,400 crore and global AI jitters pressuring tech. IT stocks slump dominated the week, wiping out roughly Rs 3 lakh crore in market value among top names. Traders will watch WPI, trade balance, PMI prints and the FOMC minutes for near-term cues. With leadership tilting toward banks and autos, sentiment may stay fragile. We outline the drivers, sectors to track, and a practical plan for February 16.