India’s benchmark indices, Sensex and Nifty, deepened losses by midday on February 6 as investors braced for key corporate earnings and the RBI’s crucial rate decision on February 7. Bharti Airtel, ITC, and HDFC Bank were the biggest drags on Nifty.
At 11.30 AM, the Sensex was down 306 points or 0.4 percent at 77,964, and the Nifty was down 92 points or 0.4 percent at 23,604. About 1,810 shares advanced, 1,470 shares declined, and 133 shares were unchanged.
All eyes are on the Reserve Bank of India, with expectations running high for a rate cut—the first in nearly five years. Governor Sanjay Malhotra’s debut monetary policy review is set to take center stage, and with the government already reducing personal tax rates in the Union Budget to fuel consumption, the RBI’s decision could be a defining moment for growth.
Follow our live blog for all the market action
"The market is moving into a consolidation phase on expectations of a pick up in growth in the coming quarters," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "In the near-term the market is likely to get a mild boost from a possible 25 basis point rate cut by the MPC. Even though steadily depreciating INR doesn’t provide a favourable macro backdrop for a rate cut, the MPC is likely to go for a 25 bp cut on February 7 to keep the optimistic momentum provided by the Budget going."
Vijayakumar also pointed to macro trends in the US turning favorable for emerging markets like India such as dollar index slipping to 107 and the 10-year yield declining to 4.4 percent. Given these factors, FIIs are unlikely to press heavy selling as they did in January. So far in February, FIIs have offloaded shares worth Rs 6,159 crore.
The broader markets struggled, with the BSE Midcap index down half a percent, while the BSE Smallcap index remained flat. Barring Nifty Pharma, which rose 0.5 percent, all 12 sectoral indices either traded in the red or hovered near the flatline.
Amongst sectors, IT stocks were in focus after US-based Cognizant Technology Solutions delivered strong Q4 results, surpassing revenue estimates but issuing a weaker-than-expected CY25 guidance. The Nasdaq-listed firm projected constant currency revenue growth of 3.5-6 percent for 2025.
Titan, Bharti Airtel, M&M, Tata Steel, and UltraTech Cement were the worst performers on the Nifty 50, slipping 1-2 percent. Meanwhile, BPCL, Cipla, HDFC Life, Dr. Reddy’s, and Hero MotoCorp emerged as the top gainers, rising 1-2 percent.
Investors are also watching quarterly results from six Nifty companies—State Bank of India, Trent, Bharti Airtel, Hero MotoCorp, Britannia, and ITC—scheduled for today.
Among individual stocks, Swiggy tumbled over 4 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. In contrast, VRL Logistics surged 16 percent after posting a strong profit growth.
On the technical front, Hardik Matalia, Derivative Analyst at Choice Broking, identified key levels for Nifty. He said that on the downside, 23,600 serves as immediate support for Nifty, followed by 23,500. On the upside, immediate resistance is at 23,800, with a strong hurdle near 24,000. "A sustained close above these resistance levels could drive the markets higher." He also noted that buying on dips remains a viable strategy as long as the Nifty holds above 23,300.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
