Taking Stock | Sensex, Nifty end lower for second straight session; investors await RBI policy

markets

Indian markets closed slightly lower on February 6, weighed down by blue-chip stocks such as Titan, ITC, State Bank of India, and PowerGrid amid weaker earnings. Bharti Airtel emerged as the top loser among benchmark indices ahead of its key earnings release later today, contributing significantly to the market decline.

At the close, the Sensex slipped 0.27 percent, losing 213.12 points to settle at 78,058.16, while the Nifty declined 0.39 percent, down 92.95 points to 23,603.35. This marked the second consecutive session of losses for both indices.

Investor sentiment remained cautious ahead of the Reserve Bank of India's bi-monthly policy announcement on February 7. A Moneycontrol poll of bankers and economists indicated expectations of a 25-basis-point rate cut in February, citing sluggish growth, government advance estimates, and a series of liquidity infusion measures.

On the global front, Asian equities gained momentum after stocks and bonds advanced on Wall Street despite a week marked by tariffs, weak tech earnings, and mixed US economic data. Markets in Australia, Japan, and South Korea saw gains, while equity futures in Hong Kong also moved higher. The S&P 500 and Nasdaq 100 recorded their second consecutive day of gains, extending their rebound from Monday’s decline.

Outlook for February 7

Vinod Nair, Head of Research, Geojit Financial Services

The benchmark indices experienced a moderate decline as investors awaited the RBI's decision on a potential rate cut amidst the ongoing trade war. The broader market remained cautious, in a consolidation phase, despite the government's focus on boosting consumption to cushion lower growth. Meanwhile, IT and Pharma sectors advanced, supported by lower treasury yields after moderating US PMI data, encouraging the Fed to reduce interest rates.

Prashanth Tapse, Senior VP (Research), Mehta Equities

Despite logging sharp gains in the first few minutes of opening trades, markets slipped into the red and moved in a narrow range with a negative bias for most part of the trading session. Investors booked profits in rate-sensitive sectors like realty, banking, and auto shares ahead of tomorrow's monetary policy announcement. If there is any surprise rate cut, we may see short-term optimism.

Aditya Gaggar Director of Progressive Shares

Once again, 50DMA proved to be a reliable resistance level. After a strong opening, the Index failed to maintain higher levels, gradually losing ground throughout the day, ultimately closing at 23,603.35 with a loss of 92.95 points. Among the sectors, Pharma and IT stood out as the top performers, while Realty and FMCG faced the steepest declines. A noticeable divergence emerged in the broader market, with the Midcap correcting over 1%, while the Smallcap more or less mirrored the movement of Nifty50. On the daily chart, Nifty50 formed a bearish candlestick pattern. However, the downside appears to be supported at the 23,520 level, while a break above 23,800 would be necessary to confirm the continuation of the uptrend.