The Sensex and Nifty ended lower on the weekly expiry day of February 6, as investors treaded cautiously ahead of key corporate earnings and the Reserve Bank of India's crucial rate decision on February 7. Trent, Bharti Airtel, and ITC weighed on the Nifty, keeping the index under pressure.
At close, the Sensex was down 213 points or 0.3 percent at 78,058, and the Nifty was down 92 points or 0.4 percent at 23,603. About 1,871 shares advanced, 1,907 shares declined, and 124 shares were unchanged.
All eyes are now on RBI Governor Sanjay Malhotra’s first monetary policy review, a decision that could set the tone for the market’s next big move. With the government already delivering a tax cut in the Union Budget to boost consumption, the RBI’s stance on rate cuts will be a critical signal for growth.
"Markets have already priced in the expected 25 basis point rate cut. If the RBI delivers a dovish surprise, such as clear signals on future rate cuts, we could see an uptick," said Ajit Mishra, SVP Research at Religare Broking.
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On the expiry front, Mishra pointed to active call writing at the 23,700 level, keeping Nifty in a tight range with an expected close near 23,600. "The market is struggling against key resistance levels in both medium and long-term averages, making a breakout difficult without a strong catalyst. So far, earnings haven't provided the spark investors were hoping for," he noted.
The broader markets were mixed, with the BSE Midcap index sliding nearly 1 percent and the BSE Smallcap ending flat. Barring Nifty Pharma, Nifty IT, and Nifty Private Bank which eked out gains of 0.3-0.6 percent, the remaining nine sectoral indices hovered near the flatline or ended lower.
Trent, Bharat Electronics, Titan, Bharti Airtel, and NTPC led the declines, slipping 2-8 percent, while Cipla, Adani Ports, HDFC Life, Infosys, and Tech Mahindra posted modest gains of 1-2 percent.
Trent shares slumped 8 percent after the Tata Group company announced a store portfolio optimization plan alongside its December quarter results. The strategy involves upgrading or consolidating smaller stores with newer outlets in high-potential micro-markets. However, the company has not disclosed the potential capital expenditure required for this revamp.
Among individual stocks, Voltas dropped over 3 percent after facing a legal setback in Qatar, where a court ordered the company to pay QAR 167.72 million (around Rs 402 crore) in a case linked to its joint venture with OHL International, Spain, and Contrack (Cyprus).
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Meanwhile, Bharat Earth Movers (BEML) fell over 3 percent following weak December quarter results. The company’s net profit nearly halved to Rs 24.4 crore from Rs 48.2 crore a year ago and revenue declined 16.3 percent year-on-year to Rs 876 crore.
Swiggy shares tumbled over 5 percent after reporting a wider third-quarter loss. Sula Vineyards slid 4 percent following a 35 percent drop in its December-quarter profit, weighed down by slowing urban consumption.
VRL Logistics surged 14 percent after posting a strong profit growth.
Technical indicators suggest Nifty is at a critical juncture. "There’s strong support near 23,400, and if that holds, we anticipate an upward move," said Mehul Kothari, Assistant Vice-President of Technical Research at Anand Rathi Share and Stock Brokers. "A breakout above 23,850 would confirm a bullish trend, opening doors to higher levels. Until then, the market remains rangebound between 23,400 and 23,800."
Despite the usual expiry-day jitters, Kothari believes wild swings are unlikely. "The last few months saw heightened volatility and even moments of panic. But post-budget optimism is helping stabilize sentiment," he added.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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