Is Friday the 13th a Jinx for Dalal Street? Nifty 50 and BSE Sensex Slide as IT Sell-Off Deepens

Friday the 13th Sparks Fear, but Dalal Street’s Fall Was Driven by Fundamentals, Not Folklore

Index	Price	Change	% Chg
Nifty 50	25,471.10	336.10	-1.30%
Nifty Bank	60,186.65	553.10	-0.91%
Nifty Financial	28,126.35	258.85	-0.91%
BSE SENSEX	82,626.76	1048.16	-1.25%

Friday the 13th has long been associated with superstition, caution, and even fear in Western culture, with the term paraskevidekatriaphobia coined to describe the anxiety around the date. However, when it comes to Dalal Street, historical data suggests that investors usually trade on earnings, liquidity, and global cues rather than calendar myths. This time too, the sharp fall in Indian equities had little to do with superstition and far more to do with sector-specific worries and macro signals.

Historical trends actually weaken the “Friday the 13th curse” theory. In 9 of the last 16 such sessions, Indian markets ended higher, giving a 56.25% positive strike rate. There have even been strong rallies on this date, including a 4% jump in the Nifty on March 13, 2020, and gains in multiple sessions across 2019, 2021, and 2024. Yet, because markets fell sharply this time, the coincidence with the date amplified psychological discomfort among retail participants, even though the real triggers were visible and data-driven.

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Sensex and Nifty Slide Sharply as IT Stocks Lead a Broad Selloff

The real story of the day was the sharp correction in technology stocks, which pulled the entire market lower. The BSE Sensex tumbled 1,048 points, or 1.25%, to close at 82,626.76, while the Nifty 50 fell 336 points, or 1.30%, to end at 25,471.10, slipping decisively below the 25,500 mark that many traders were watching as a near-term support.

The selloff marked the second straight session of declines and reflected persistent pressure on large-cap stocks. The mood remained risk-off through most of the day, with indices opening gap-down and failing to mount any meaningful recovery. Traders noted that once key levels broke, algorithmic and momentum-driven selling intensified, keeping markets under pressure till close.

AI Disruption Fears Hammer IT Majors and Weigh on Sentiment

The IT pack remained the epicenter of the decline as concerns about artificial intelligence disrupting the traditional outsourcing and labour-arbitrage model resurfaced. Investors worry that automation and AI tools could compress margins and reduce long-term demand for large workforces, which form the backbone of Indian IT services.

Key laggards included:

• Infosys

• TCS

• HCL Technologies

• Wipro

The Nifty IT index fell 1.44% after a steep 4.72% drop in the previous session. For the week, the index has corrected about 9%, its worst weekly fall since April 2025. For 2026 so far, the index is down over 16%, already exceeding last year’s total decline.

Ajit Mishra of Religare Broking said:

“The sharp correction in the IT pack has temporarily put bulls on the backfoot. Sentiment has weakened as traders react to heavy selling in IT stocks amid global volatility.”

Wealth Erosion Mounts as Selling Spreads Across the Market

The damage was not limited to IT. The broad-based selloff erased nearly ₹7.4 lakh crore in investor wealth in a single session, pulling total BSE market capitalization to around ₹465 lakh crore. Market breadth painted a weak picture, with decliners massively outnumbering gainers.

Key breadth indicators showed:

• Over 2,700 stocks declining on BSE

• Nearly 200 stocks hitting 52-week lows

• 431 out of Nifty 500 stocks ending in red

• Midcap and smallcap indices down nearly 2%

Sectorally, all major indices closed lower. Metals were hit hardest, with the Nifty Metal index down 3.31%, dragged by Hindalco Industries, which fell over 6% after a 45% drop in quarterly profit. Realty, Oil & Gas, and Consumer Durables also posted notable declines.

Global Cues and Dollar Strength Add to Domestic Pressure

Global sentiment offered little comfort. A 2% fall in the Nasdaq triggered valuation worries for tech stocks worldwide. Strong US jobs data also dampened hopes of early rate cuts, pushing yields higher and making equities less attractive in the near term.

Asian markets were mixed but cautious, while US futures traded lower. Meanwhile, the rupee weakened to 90.69 against the dollar, reflecting pressure from a firm greenback and soft domestic equities. Currency weakness often makes foreign investors more defensive, adding to equity market pressure.

VK Vijayakumar of Geojit Investments said:

“Markets have fallen into a turbulent phase which will cause some panic among investors even while offering opportunities.”

Key Factors Behind the Market Decline

IT Sell-Off Deepens on AI Disruption Fears

The Nifty IT index extended its fall for the third consecutive session, declining about 5% as concerns grew that AI-driven automation could disrupt the sector’s traditional labour-intensive outsourcing model. The index had already dropped 5.5% on February 12, showing that the pressure is not a one-day reaction but part of a broader reassessment of IT valuations.

Weak Global Cues Weigh on Risk Appetite

Global markets provided little comfort to domestic investors. In Asia:

• Hang Seng Index traded lower

• Nikkei 225 declined

• SSE Composite slipped

US markets also closed weak:

• Nasdaq Composite fell over 2%

• S&P 500 dropped more than 1%

• Dow Jones Industrial Average lost over 1%

The trigger was a mix of technology stock selling and macro data. Stronger-than-expected US jobs data reduced hopes of quick Federal Reserve rate cuts, which tends to pressure growth stocks globally.

As market commentary noted:

“Wall Street indices fell sharply, with the technology-heavy Nasdaq slumping 2 percent, as investors intensified their sell-off of tech shares amid worries about artificial intelligence disruption.”

Rise in Volatility Signals Growing Nervousness

The India VIX — often called the market’s fear gauge — climbed more than 10% to 12.86, reflecting rising uncertainty and hedging demand among traders. A rising VIX usually indicates that participants expect larger price swings ahead.

Technical Breakdown Signals Caution for the Near Term

Technically, the charts turned fragile. The Nifty slipped below its 20, 50, and 100-day EMAs, weakening the short-term trend structure. RSI fell below 50 and continued trending lower, signaling fading momentum, while ADX indicated growing bearish dominance.

India VIX jumped over 13% to 13.29 and moved above its 200-day average, reflecting rising fear among participants. The Nifty also breached the 38.2% Fibonacci retracement of the prior rally from 24,571 to 26,341.

Key levels now:

• Support: 25,450–25,400

• Next downside: 25,200 then 25,000

• Resistance: 25,650–25,800

Here’s What Happened Today and Why Traders Reacted

Today’s reaction was shaped by a confluence of triggers:

• Persistent IT selloff on AI fears

• Weak global tech sentiment

• Rising volatility and VIX spike

• Dollar strength and rupee weakness

• Profit booking and technical breakdowns

Traders responded quickly to broken support levels and global signals, leading to defensive positioning and lower risk appetite.

What This Means for Investors and Portfolios

For investors, the fall is a reminder that markets can correct even in strong long-term trends. Analysts largely view the move as a corrective phase rather than a structural breakdown, especially given steady FII and DII flows.

Portfolio implications include:

• Expect short-term volatility

• Diversify beyond IT-heavy exposure

• Focus on earnings resilience

• Use staggered investments during corrections

Long-term investors may see selective opportunities if valuations cool further.

Friday the 13th Didn’t Move the Market — Earnings and AI Fears Did

If anything, this session reinforces that Dalal Street responds to data, not dates. The fall was driven by sectoral stress, global cues, and technology disruption concerns — not superstition.

The next direction will likely depend on global tech sentiment, US inflation data, and how IT companies address AI-led transformation. For now, the message is clear: fundamentals, not folklore, rule the market.

• Nifty 50
• Bank Nifty
• Sensex

FAQs Is Friday the 13th a Jinx for Dalal Street?

Q. Why did Indian IT stocks fall sharply despite stable company fundamentals?

Indian IT stocks corrected mainly due to future growth concerns linked to AI-led automation, not because of immediate earnings deterioration. Investors fear that generative AI could reduce demand for traditional outsourcing and labour-intensive services, which form a large part of Indian IT revenue. So the selloff reflects valuation reset and future risk pricing, rather than current balance-sheet weakness.

Q. How does a fall in the Nasdaq impact Indian IT and tech stocks?

Many Indian IT firms earn a significant share of revenue from US clients. When the Nasdaq falls, it signals lower tech valuations and weaker risk appetite globally. Foreign investors often reduce exposure across global tech, including Indian IT, creating a spillover effect on Dalal Street.

Q. Is the current IT sector correction cyclical or structural in nature?

Right now, the correction looks like a mix of both.

• Cyclical: Due to global slowdown worries and delayed tech spending.

• Structural: Due to AI disruption fears.

If AI becomes a revenue opportunity rather than a threat, the sector could stabilize. But if margins shrink structurally, valuations may remain under pressure longer.

Q. What does a rising India VIX actually mean for retail investors?

A rising India VIX means traders expect bigger market swings ahead. For retail investors, this often translates into:

• More intraday volatility

• Wider price fluctuations

• Higher emotional decision-making risk

It does not always mean a crash, but it signals caution and the need for disciplined investing.

Q. Why do markets sometimes fall even when domestic news is stable?

Indian markets are deeply integrated with global capital flows. Even if domestic macros are stable, markets can fall due to:

• Global risk-off sentiment

• US bond yield movements

• Dollar strength

• Global tech selloffs

Foreign investor flows often react more to global cues than local headlines.

Q. Could AI actually benefit Indian IT companies in the long run?

Yes, many analysts believe AI could eventually expand demand for high-value digital services, consulting, and AI integration. Companies that adapt quickly may protect margins and even unlock new revenue streams. The current fear is about transition risk, not permanent decline.

Q. How should long-term investors respond to such tech-led market corrections?

Long-term investors typically focus on:

• Staggered buying instead of lump-sum entries

• Portfolio diversification beyond IT

• Watching earnings guidance, not just headlines

• Using corrections to accumulate quality stocks

Corrections often reset valuations and can create opportunities for disciplined investors.