Fairness markets closed decrease on Wednesday regardless of the Reserve Financial institution of India’s (RBI) first fee lower since Could 2020, as traders remained involved about international commerce tensions and continued international institutional investor (FII) outflows.
The BSE Sensex fell 197.97 factors or 0.25 per cent to shut at 77,860.19, whereas the Nifty 50 declined 43.40 factors or 0.18 per cent to finish at 23,559.95. The BSE market capitalisation knowledge for the week confirmed a fluctuating development, beginning at ₹42,480,380.82 crore on February 1 with 5,587 listed firms. After dropping to ₹42,031,299.60 crore on February 3, it peaked at ₹42,803,611.66 crore on February 5, earlier than settling at ₹42,580,986.85 crore on February 6. The highest 10 firms’ market capitalisation equally assorted, ending at ₹9,470,356.08 crore on February 6.
The central financial institution decreased the repo fee by 25 foundation factors to six.25 per cent, whereas sustaining a impartial stance. The RBI additionally revised its FY25 GDP development forecast downward to six.4 per cent from 6.6 per cent and projected 6.7 per cent development for FY26.
“A fee lower geared toward reviving the slowing financial system is a constructive indicator. Nevertheless, yields edged increased as traders had been dissatisfied by the absence of anticipated liquidity measures, resulting in profit-booking within the indices,” mentioned Vinod Nair, Head of Analysis at Geojit Monetary Companies.
The market breadth remained damaging, with 2,402 shares declining in comparison with 1,520 advances on the BSE. Sixty shares hit their 52-week highs, whereas 101 touched their 52-week lows. Ten shares hit the higher circuit, and 4 hit the decrease circuit.
Amongst sectoral indices, metals confirmed power with the Nifty Steel index gaining 2.6 per cent. High gainers on the NSE included Tata Metal (+4.24 per cent), ITC Lodges (+3.73 per cent), Bharti Airtel (+3.60 per cent), JSW Metal (+3.35 per cent), and Trent (+3.09 per cent). The surge in Bharti Airtel got here after the corporate reported a 460 per cent rise in Q3 web revenue to Rs 16,135 crore, primarily on account of a one-time distinctive achieve.
Main losers included ITC (-2.49 per cent), SBI (-2.11 per cent), Britannia (-1.70 per cent), Adani Ports (-1.59 per cent), and TCS (-1.24 per cent). The Nifty PSU and FMCG indices declined by 1.3 per cent.
FII promoting remained a major concern for the market. In line with JM Monetary, FIIs offloaded shares price ₹723 billion ($8.4 billion) in January 2025, persevering with their promoting streak on 22 out of 23 buying and selling days. Since October 2024, FIIs have offered shares price ₹1.7 trillion ($20 billion).
Prashanth Tapse, Senior VP (Analysis) at Mehta Equities Ltd, attributed the market decline to traders’ muted response to the speed lower. “As the speed lower didn’t spring any main shock, traders didn’t discover something fascinating within the new RBI Governor’s feedback, which resulted in a gradual bout of profit-taking in banking, oil & fuel, FMCG and energy shares,” he mentioned.
Hrishikesh Yedve, AVP Technical and Derivatives Analysis at Asit C. Mehta Funding Interrmediates Ltd, mentioned whereas Nifty shaped a pink candle on the each day scale signifying weak spot, its weekly construction remained robust. “Contemplating the robust weekly construction, purchase on dips method ought to be adopted in Nifty,” he instructed, including that Financial institution Nifty’s instant assist lies close to 49,650 whereas 50,600 will operate as resistance.
Ameya Ranadive, Sr Technical Analyst at StoxBox, highlighted that whereas the speed lower aligned with market expectations, some traders had been dissatisfied as that they had anticipated a shift in stance from impartial to accommodative. “The market concluded on a damaging word, with extra shares declining than advancing; particularly, 1,756 shares fell,” he noticed.
The Indian rupee traded above 87.42 towards the US greenback. “Regardless of the minor rupee bounce, additional stability is dependent upon FII flows and international market sentiment. The rupee vary is predicted to remain between 87.25-87.60,” famous Jateen Trivedi, VP Analysis Analyst at LKP Securities.
Technical analysts remained cautiously optimistic in regards to the market’s near-term prospects. “The Nifty remained unstable because the RBI Governor introduced the financial coverage. Nevertheless, the volatility didn’t push the index under the 21 EMA on the each day timeframe, signifying a constructive short-term development,” mentioned Rupak De, Senior Technical Analyst at LKP Securities.
The volatility index, India VIX, dropped by 3.45 per cent to 13.69, indicating decreased market volatility. The Nifty Financial institution index closed at 50,158.85, down 223.25 factors or 0.44 per cent.
Within the commodities market, gold traded positively with MCX gold gaining ₹200 to commerce at ₹84,650. Market members are actually specializing in upcoming U.S. Non-Farm Payroll and Unemployment knowledge for additional cues.
“With main occasions now behind us, the main focus will shift again to earnings for additional cues,” mentioned Ajit Mishra, SVP, Analysis at Religare Broking Ltd, including that the Nifty must maintain above its essential short-term assist on the 20 DEMA for a possible rebound in direction of 23,900.
