Sell-off in IT stocks sends markets into a tailspin

by Hansraj Agrawal | Feb 13, 2026 | Business

Domestic equities were weighed down by weak global cues
| Photo Credit:
Ta Nu

Markets witnessed sharp selling pressure on Friday, and benchmark indices slid 1.3 per cent on mounting concerns over artificial intelligence-led disruption in the IT sector triggered widespread profit-booking across sectors.

The IT sector bore the brunt of the selloff, with major heavyweights witnessing significant declines. TCS fell 2 per cent and Wipro 2.2 per cent. The Nifty IT Index has lost over 8 per cent this week.

“Today’s weakness in Sensex and Nifty is largely driven by selling pressure in the IT sector, which weighed on broader market sentiment,” said Swapnil Aggarwal, Director, VSRK Capital.

He pointed out that concerns around global demand slowdown, cautious commentary from tech companies, and uncertainty related to AI-led disruptions and job losses had triggered profit-booking after recent gains.

“The view that software or IT services are structurally obsolete appears overstretched, particularly in the enterprise segment, which runs mission critical multilocational and highly secure applications,” noted N. ArunaGiri, CEO, TrustLine Holdings.

“In the current IT melt-down, instead of taking a universal buy-on-dips approach, take a prudent selective and stock-specific approach based on underlying business models,” he added.

Sensex shaved off over 1000 points in trade and Nifty ended 336.1 points power, as foreign portfolio investors have escalated selling. According to provisional data, they offloaded shares nearly worth ₹7,400 crore.

Hindalco emerged as the top Nifty loser, plummeting 6.08 per cent followed by Hindustan Unilever, which dropped 4.34 per cent. Among gainers, Bajaj Finance rose 3.09 per cent and, Eicher Motors gained 1.56 per cent.

The broader market correction was widespread, with metals and FMCG stocks facing heavy selling.

The Nifty Midcap 100 fell 1.71 per cent, while the Nifty Smallcap 100 tumbled 1.79 per cent. All sectoral indices closed in the red, with Nifty Bank down 0.91 per cent.

“At present, this appears to be more of a sentiment-driven correction rather than the start of a deeper structural downturn,” Aggarwal said, advising investors to “adopt a staggered investment strategy” through systematic investment plans to navigate volatility.

Looking ahead, Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services, expects markets to “remain range-bound in the near term amid mixed global cues,” with investor attention shifting toward the upcoming India AI Impact Summit scheduled in New Delhi next week.

Published on February 13, 2026

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Sanctions drag India’s January crude oil imports from Russia to lowest in over 3 years

by Hansraj Agrawal | Feb 13, 2026 | Business

By contrast, Russian crude deliveries into China surged to an all-time high last month
| Photo Credit:
ABEER KHAN

India’s imports of crude oil from Russia stood at 1.1 million barrels per day (mb/d) in January 2026, marking the lowest in more than three years, as US sanctions forced domestic refiners to scale back purchases from Moscow.

The International Energy Agency (IEA) in its latest oil market report pointed out that Russian supply declined last month, by a sizeable 350,000 b/d, as key buyers faced increased pressure from Washington and broader EU sanctions.

“Shipments to India have been hit particularly hard as fresh EU restrictions on imports of petroleum products derived from Russian crude prompted key export refineries to look for alternative supplies. Tanker tracking data shows Indian imports of Russian crude declined to 1.1 mb/d in January, — the lowest level since November 2022 — down from 1.7 mb/d on average in 2025,” it added.

By contrast, Russian crude deliveries into China surged to an all-time high last month, it added.

OPEC, in its February 2026 monthly oil market report, said Washington announced an immediate reduction in “reciprocal” tariffs on Indian goods imports to 18 per cent from 25 per cent, alongside reports indicating that the additional 25 per cent duty related to India’s Russian oil purchases would be eliminated following India’s agreement to scale back such imports.

At the same time, India committed to further increasing crude oil imports from the US, alongside announced commitments to expand other US purchases further, it added.

Analysts and trade sources said that pressure from Washington on India to stop Russian imports, coupled with the European Union’s (EU) 18^th sanctions package, which prohibits the supply of refined petroleum products derived from crude oil from Moscow, has resulted in lower imports by Indian refiners.

However, there is no dearth of supply currently, said one of the analysts, adding that domestic refiners can manage from the Middle East for medium sour crude, besides leveraging the US and West Africa for light sweet grades.

“With supply continuing to outpace demand, observed oil inventories rose by a further 37 million barrels (mb) in December, taking global stock builds in 2025 to an extraordinary 477 mb, or 1.3 mb/d on average, a level not seen since 2020,” IEA said.

Published on February 13, 2026

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Q3 Results 13th Feb Highlights: NBCC (India), IPCA Lab, NLC Industries Q3 profit up, Alkem Lab shares slump, Rategain & Blue Jet profit fall, Torrent Pharma, KFin Tech, Shakti Pumps announce Q3 results

by Hansraj Agrawal | Feb 13, 2026 | Business

State-run Oil and Natural Gas Corporation (ONGC) on Wednesday reported a 23 per cent rise in consolidated net profit for the December quarter, aided by improved margins and lower finance costs, even as crude price realisations declined year-on-year.

The company posted a consolidated net profit of ₹11,946 crore in Q3 FY26, compared with ₹9,747 crore in the year-ago period, according to its regulatory filing.

WHAT DRIVES ONGC’S Q3 FY26 PERFORMANCE

Profit Growth Despite Flat Revenue

Consolidated gross revenue in Q3 FY26 stood at ₹1,67,423 crore versus ₹1,67,213 crore in Q3 FY25, a marginal rise of 0.13%.

However, consolidated net profit jumped 23% to ₹11,946 crore from ₹9,747 crore.

Net profit attributable to owners rose 16.7% to ₹10,016 crore from ₹8,585 crore.

Revenue was flat, but profit surged. This indicates margin expansion and cost efficiency, not topline growth drove earnings.

For 9M FY26, revenue declined 1.43% to ₹4,88,442 crore, yet net profit rose nearly 23% to ₹36,115 crore. Clear margin-led performance.

Standalone Revenue Impacted by Lower Crude Prices

Standalone Q3 revenue declined 6.4% to ₹31,546 crore from ₹33,717 crore.

This was mainly due to lower crude realisations:

* Nominated crude realisation fell 15% to $61.63/bbl from $72.57/bbl.

* JV crude realisation fell 13% to $63.00/bbl from $72.59/bbl.

Despite this sharp drop in prices, standalone net profit still rose 1.6% to ₹8,372 crore from ₹8,240 crore.

Even with weaker crude prices, upstream profitability remained resilient.

Production Stability is Key Positive

Crude production (Standalone):

* Q3 FY26: 4.592 MMT

* Q3 FY25: 4.653 MMT

For 9M FY26, crude production rose 0.35% to 13.907 MMT from 13.858 MMT.

Natural gas production remained stable:

* Q3 FY26: 4.988 BCM

* Q3 FY25: 4.978 BCM

9M gas production remained steady at 14.751 BCM.

Volume stability offsets part of the price decline impact.

New Well Gas Becoming a Strategic Earnings Driver

Revenue from New Well Gas during 9M FY26 stood at ₹5,028 crore.

This generated ₹944 crore additional revenue over APM pricing and now contributes more than 18% of total gas sales revenue.

Nomination gas price rose slightly to $6.59/mmbtu from $6.50/mmbtu.

Gas portfolio is increasingly cushioning crude price volatility.

Dividend Reflects Strong Cash Position

Board declared 2nd interim dividend of ₹6.25 per share (125%).

Earlier ₹6 per share was declared.

Total interim dividend for FY26 so far: ₹12.25 per share (245%).

Total cumulative interim payout: ₹15,411 crore.

Q3 payout alone: ₹7,863 crore.

Strong dividend signals healthy cash flows and balance sheet comfort.

Exploration & Project Momentum Supports Future Growth

* 735.82 LKM of 2D seismic acquired

* 4,484.59 SKM of 3D seismic acquired

* 2 discoveries monetised (Anor in Gujarat, Gojalia-14 in Tripura)

* Ultra-deepwater Andaman well spudded

* KG-98/2 and Daman Upside projects nearing production

Ensures reserve replacement and future production visibility.

Bottom Line

* Profit growth is margin-led, not revenue-led

* Crude prices declined sharply but profitability held

* Gas portfolio gaining importance

* Production stabilising

* Strong dividend payout reinforces financial strength

ONGC’s Q3 reflects operational resilience and diversified earnings support despite weaker crude pricing.

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Banks can lend only to SEBI-registered, listed REITs min 3-year operational history: RBI draft guidelines

by Hansraj Agrawal | Feb 13, 2026 | Business

As REITs are trusts, the bank will need to be mindful of the legal provisions in respect of these entities especially those regarding enforcement of security.
| Photo Credit:
FRANCIS MASCARENHAS

The Reserve Bank of India’s (RBI) plans to allow Banks to lend to SEBI-registered Real Estate Investment Trusts (REITs) provided the Trusts are listed and have a minimum three-year operational history with positive cash flows, per Reserve Bank of India (Commercial Banks – Credit Facilities) (Draft) Second Amendment Directions, 2026..

Alongside, the central bank also issued updated draft guidelines for bank’s exposure to Infrastructure Investment Trust (InvITs), These are similar to the one issued for bank lending to REITs.

The central bank said the aggregate credit exposure of all banks to the borrowing REIT and its underlying SPVs/ holdcos (special purpose vehicles/ holding companies) taken together, cannot exceed 49 per cent of the value of the REIT’s assets as on March 31st of the previous financial year, or such lower limit as may be decided by the bank’s Board.

Lending to a REIT by a bank can only be by way of loans not involving bullet or ballooning principal repayments.

A bank should strictly monitor the end use of funds lent to REITs to ensure that this route is not being used to finance activities which are not permitted, such as land acquisition, even where such acquisition forms part of a project.

Overseas branches can lend to REITs constituted overseas if an effective insolvency / bankruptcy mechanism, either statutory or regulatory, is available in the relevant jurisdiction.

Legal provisions

As REITs are trusts, the bank will need to be mindful of the legal provisions in respect of these entities especially those regarding enforcement of security.

Where bank financing is for the purpose of refinancing of existing term loans of SPVs (special purpose vehicles), it shall be ensured that it is undertaken only in respect of completed projects that have received a Completion Certificate (CC), Occupancy Certificate (OC), or their equivalent.

Published on February 13, 2026

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‘City Union Bank will continue to focus on MSME lending, technology’

by Hansraj Agrawal | Feb 13, 2026 | Business

Vijay Anandh, who will take over as the new MD and CEO of City Union Bank in May
| Photo Credit:

As City Union Bank prepares for a transition with long-time MD and CEO N Kamakodi completing his 15-year tenure in April, the bank has decided to tap an internal talent to take over the mantle.

With the banking regulator approving the appointment of Vijay Anandh as the new MD and CEO of City Union Bank with effect from May, the executive told businessline that his focus will be to build on the bank’s core strength in MSME, gold loans and secured retail, and will look to further leverage technology across operations.

“It is an honour to get the opportunity to lead a bank as reputed as this. We have consistently achieved double-digit growth across last few quarters, and will look to sustain the growth to end up over and above the industry level growth. Our focus on MSME, gold loan and secured loans, such as housing and LAP, will continue,” he told businessline.

cyber security

We are already investing in technology and we also want to use AI for governance, transaction monitoring and for the ease of our customers, he said. Separately, strengthening cyber security is also a key priority. “Physical branch expansion will also continue as CUB serves MSMEs and customer contact and relationship is key in this segment,” he said.

The mid-size private sector lender reported a net profit growth of 16 per cent year-on-year (y-o-y) at ₹332 crore in the third quarter ended December 2025 (Q3FY26). Profit grew on growth in advances and improvement in yield on advances.

Speaking about credit demand, Anandh said post the GST rate cut, they have seen an uptick in demand across segments, and recent trade deals are also likely to help MSMEs upgrade capacity. To a question on the uptick in gold loans in recent quarters, he said the share of gold loans has remained fairly stable in overall advances. “With our special mention accounts under control and the macro environment on track, we are optimistic of beating industry growth,” he said.

Anandh holds over 28 years of experience in banking. Prior to his appointment in City Union Bank, he served as the business and collections head for retail asset products at RBL Bank. He was first appointed as Executive President at CUB in 2023, and was designated ED in 2024.

CUB has historically been a conservative lender, focusing on MSMEs, traders and retail customers. The management transition has taken the shape of an internal succession plan, with the board opting to elevate existing executive rather than an external candidate.

Speaking earlier this week at the analyst call, current MD and CEO N Kamakodi said: “As you all know, this is my 59th quarter today. So, we have one more quarter to go. And based on the regulations currently in force, let’s say I have to complete my tenure on April 30.”

Published on February 13, 2026

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RBI hikes banks’ M&A financing limit to 20% of tier-1 capital

by Hansraj Agrawal | Feb 13, 2026 | Business

The Reserve Bank of India (RBI) said banks can conduct acquisition financing of up to 20 per cent of their tier-1 capital, as against the proposed 10 per cent cap, in its draft guidelines. In November, businessline had reported that bankers had sought tweaks to the draft acquisition finance guidelines, including higher exposure limits, permission to fund unlisted companies’ merger and acquisition (M&A) plans and approval to finance corporates acquiring majority stakes in tranches rather than in a single go.

“The aggregate capital market exposure (CME) of a bank, on both solo and consolidated basis, shall not exceed 40 per cent of its eligible capital base. A bank’s direct capital market exposure, consisting of investment exposures, shall not exceed 20 per cent of eligible capital base, on both solo and consolidated basis. A bank’s aggregate exposure to acquisition finance shall not exceed 20 per cent of its eligible capital base, within the aggregate CME ceiling of 40 per cent, both on a solo and consolidated basis,” said the RBI.

acquisition value

Lenders can fund up to 75 per cent of the acquisition value, enabling acquisitions of both listed and unlisted entities, subject to different guidelines. Alongside the 75 per cent cap on acquisition value, the Directions require a debt-equity ratio of 3:1 on the acquiring company, along with the target company on a consolidated basis.

The acquisition shall result in the acquirer obtaining control of the target company through a single transaction, or a series of inter-connected transactions but completed within 12 months from the date of execution of the acquisition agreement.

Further, the RBI also allowed banks to lend against government securities, sovereign gold bonds, loan against shares, NCDs, mutual funds, units of ETFs and InvITS. The regulator has set 75 per cent loan to value (LTV) ratio against mutual funds, 60 per cent for loan against shares and NCDs and 85 per cent for debt mutual funds.

“The RBI has opened gates for leveraged buyouts, allowing banks to finance acquisition of control, including acquisition of substantial stake in already controlled entities by non financial acquiring companies. The directions permit acquisition of both domestic and overseas entities for up to 75 per cent of the acquisition value. With this, banks would be able to fund acquisitions directly without hiding it in the name of general corporate purposes,” said Payal Agarwal, partner, Vinod Kothari and Company.

Published on February 13, 2026

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