4.3+ App Rating | 1.5M+ Indian Traders
+91
India Market Outlook (February 6 2026)
Market overview
Domestic equities recovered from early weakness on Friday after the Reserve Bank of India’s monetary policy committee (MPC) kept the repo rate unchanged at 5.25 % and hinted at a prolonged pause. The BSE Sensex and NSE Nifty50 initially slipped amid a global technology sell‑off but bounced back as private‑sector banks and FMCG heavyweights attracted buying. IT and healthcare shares remained under pressure, while trading volumes were cautious ahead of the policy decision. Bond yields eased as the 10‑year government bond yield dipped 5 basis points to 6.64 % and the rupee hovered around ₹90.35 per USD.
Key indices and statistics (close on 6 Feb 2026)
| Index | Close | % chg | Highlights |
|---|---|---|---|
| Sensex | 83,580.40 | +0.32 % | Rebounded after the policy decision; heavyweights Kotak Bank and ITC lifted the index. |
| Nifty 50 | 25,693.70 | +0.20 % | Finished near the day’s high after testing 25,512 intraday; resilience in banks and telecom offset IT weakness. |
| Nifty Midcap 100 | 34,962 (approx.) | −0.02 % | Mildly lower as investors booked profits in mid‑cap IT and pharma stocks. |
| Nifty Smallcap 100 | 13,963 (approx.) | −0.27 % | Small‑cap breadth remained weak with selective buying in defence and FMCG names. |
| India VIX | 15.8 | ↑ (volatility) | Volatility remained elevated as traders hedged positions around the MPC outcome. |
| FII net flow | ≈ –₹2,150 cr | — | Foreign institutional investors continued to reduce risk amid global headwinds. |
| DII net flow | ≈ +₹1,129 cr | — | Domestic institutions provided support, particularly in private banks. |
Sectoral performance
Most sectors ended in the red. The Nifty IT index slid about 1.8 % as large technology stocks bore the brunt of the global tech rout. Healthcare and pharmaceuticals also weakened (–1.4 % on the Nifty Healthcare index), while metals and auto declined around 1 % each. Public‑sector banks lost about 1.1 %. Consumer durables and realty saw modest losses. The only notable gainer was the FMCG space (+2.2 %), buoyed by ITC and Hindustan Unilever, while the Nifty Oil & Gas and Private Bank indices eked out small gains.
Top gainers and losers (Nifty 50 constituents)
| Top gainers | Approx. % chg | Context |
|---|---|---|
| ITC | +4.3 % | Stock surged on hopes of strong cigarette volumes and a defensive bid; led the rally. |
| Kotak Mahindra Bank | +2.8 % | Private lender gained as rate‑pause benefits banking margins and valuations; supported Bank Nifty. |
| Hindustan Unilever (HUL) | +2.0 % | FMCG major rose on expectations of stable input costs and defensive demand. |
| Bharti Airtel | +2.0 % | Telecom operator extended gains after analysts reiterated an overweight rating despite a sharp drop in Q3 profit. |
| Bajaj Finance / Bajaj Finserv | ≈ +1.4 % / +0.6 % | Financial services stocks rebounded as investors rotated into rate‑sensitive names. |
| Power Grid / Axis Bank / ICICI Bank / Titan | +0.5 % to +1 % | Selected heavyweights saw buying interest, lending breadth to the recovery. |
| Top losers | Approx. % chg | Context |
|---|---|---|
| Tata Consultancy Services (TCS) | ≈ –2 % | Tech giant fell as global tech stocks slumped; cautious outlook after soft quarterly guidance. |
| Infosys / Tech Mahindra / HCL Tech / Wipro | –1.5 % to –2 % | IT stocks sank on profit‑taking and weak global cues; sector remained the worst performer. |
| Max Healthcare / Cipla / Dr Reddy’s Laboratories | –1 % to –2 % | Healthcare names declined amid concerns over pricing pressure and slower growth. |
| Public‑sector banks (PNB, SBI) | ≈ –1 % | Profit‑booking after a strong run; caution ahead of the policy outcome. |
| Metal & industrial stocks (BEL, ONGC, Hindalco, Tata Steel, NTPC, JSW Steel) | –0.5 % to –1.5 % | Global commodity weakness and risk‑off sentiment weighed on resource‑heavy counters. |
| Asian Paints / Bajaj Auto / Maruti / IndiGo | –0.5 % to –1 % | Consumer and auto names fell on earnings worries and higher valuations. |
What moved the market
- RBI policy pause: The MPC kept the policy repo rate at 5.25 % and signalled a neutral stance. It lifted its GDP growth forecast for Q1 FY27 to 6.9 % and Q2 FY27 to 7 % and nudged the FY26 inflation projection to 2.1 %, indicating that rate cuts are unlikely soon. Rate‑sensitive stocks rallied after the announcement.
- Global tech sell‑off: A sharp overnight decline in US equities – particularly in big‑tech names such as Microsoft, Amazon, Nvidia and AMD – spooked sentiment. The Dow Jones and S&P 500 fell more than 1 %, while the Nasdaq slid over 1.5 %. Asian markets largely traded lower and European indices were soft. Weak US job‑opening data and cautious guidance from central banks (ECB and Bank of England kept rates unchanged) added to risk aversion.
- FII/DII flows: Foreign investors net sold roughly ₹2,150 cr, reflecting global risk‑off, while domestic institutions bought around ₹1,129 cr and absorbed selling pressure, especially in banks.
- Rate‑sensitive buying: Banks, NBFCs and telecom stocks gained as stable interest rates ease funding pressures. FMCG names benefitted from defensive positioning amid volatility.
- IT and healthcare drag: Technology and healthcare stocks faced profit‑taking due to weak overseas cues and worries over slowing export demand. Mid‑cap IT and telecom names were hit hardest, with Nifty Midsmall IT & Telecom plunging more than 2 %.
Global cues
- US markets: The Dow, S&P 500 and Nasdaq closed down 1.2 %, 1.23 % and 1.59 % respectively as investors sold technology stocks following disappointing earnings and guidance from major firms. Job‑openings in the US fell to their lowest since September 2020, signalling labour‑market cooling.
- Europe: The European Central Bank and Bank of England kept interest rates unchanged, acknowledging uncertain growth and sticky inflation. Major European indices ended modestly lower (FTSE –0.9 %, DAX –0.46 %).
- Asia: Early Friday trade in Asia was weak. Japan’s Nikkei 225 slipped about 1.2 %, South Korea’s Kospi plunged nearly 3.9 %, while Hang Seng futures indicated a mixed start. The risk‑off mood spilled over into Indian markets at the open.
- Commodities & currencies: Brent crude settled near US$67.55/barrel, down almost 2.8 %, on concerns of softer demand. Gold and silver prices extended losses as the US dollar index strengthened toward 97.95. The rupee traded around ₹90.35 per USD.
Stocks to watch for the next session (February 7 2026)
- ITC, Kotak Mahindra Bank and Hindustan Unilever – after sharp gains, these defensives could see profit‑taking; sustained strength would indicate continued rotation into consumption and financials.
- Private banks (ICICI Bank, Axis Bank, HDFC Bank) – focus on follow‑through buying as rate stability supports lending margins.
- Telecom stocks (Bharti Airtel) – sentiment remains positive despite profit slump; management commentary from brokerages remains constructive.
- Hero MotoCorp – Q3 results missed profit estimates while revenue and EBITDA topped forecasts; declared a ₹110 dividend. Stock may react to management guidance and demand outlook.
- Federal Bank – RBI approved Asia II Topco XIII’s plan to acquire up to a 10 % stake in the bank; watch for price action as investors digest the development.
- Aditya Birla Fashion & Retail (ABFRL) – sales grew but losses widened in Q3; stock’s reaction will be tracked.
- Mazagon Dock Shipbuilders – profit rose 9 % YoY but margins softened; watch for follow‑through after results.
- UltraTech Cement – commissioned an additional 2.7 MTPA grinding capacity at Aligarh; capacity expansion highlights growth prospects and may lift the stock.
- Tata Motors – consolidated Q3 revenue declined, margins compressed and the passenger‑vehicles arm reported a loss; investors will watch for commentary on the Jaguar Land Rover cyber incident and Q4 recovery expectations.
Corporate updates
- UltraTech Cement capacity expansion: The company commissioned 2.7 MTPA of additional cement grinding capacity at its Aligarh unit in Uttar Pradesh, raising total grinding capacity there to 4 MTPA. This expansion is part of a broader growth strategy to strengthen market presence and improve logistics efficiency.
- Unicommerce – SuperYou partnership: Nutrition brand SuperYou partnered with Unicommerce’s Uniware platform to streamline order and inventory management across quick‑commerce platforms and its own website. The tie‑up aims to enhance delivery speed and manage returns more efficiently.
- Tata Motors Q3 results: Consolidated revenue fell to ₹701.1 bn, down 25.8 % YoY, mainly due to the ongoing impact of a cyber incident at Jaguar Land Rover. Consolidated EBITDA margin slipped 1,120 bps to 2.2 %. The passenger‑vehicle arm posted a quarterly loss of ₹34.8 bn against a ₹54.9 bn profit in the year‑ago period.
- Hero MotoCorp earnings: The two‑wheeler maker’s Q3 net profit missed analyst estimates even as revenue and operating profit beat expectations. It announced a ₹110 per share dividend.
- Federal Bank stake approval: The RBI allowed Asia II Topco XIII (a foreign investor) to acquire up to a 10 % stake in Federal Bank, paving the way for potential strategic investment.
- Aditya Birla Fashion & Retail (ABFRL) results: Despite higher sales, the company reported deeper losses in the quarter, suggesting pressure on margins amid expansion.
- Mazagon Dock Shipbuilders results: Net profit grew around 9 % YoY, but margins softened, signalling rising input costs.
Technical view and outlook for 7 Feb 2026
- Nifty 50: The index formed a long‑legged candle after recovering from an intraday low near 25,512 and closing around 25,694. Momentum indicators remain neutral. Immediate support lies at 25 500, followed by 25,350. On the upside, 25,800–25,850 is the first resistance band; a break could target 26,000. Traders should watch for follow‑through buying in banks and FMCG while being cautious on IT and pharma.
- Sensex: Support is seen around 83,000–82 900, with resistance near 84,000. Sustained trade above 83 600 could extend the recovery.
- Bank Nifty: According to brokerage research, the index faces immediate resistance at 60,300–60,400 and has key support at 59,700–59,800. A fall below 59,600 could open the door to 59,200–58,500, while a breakout above 60,500 may trigger a move toward 60,700–61,200. Momentum indicators (RSI and MACD) remain positive but caution is warranted amid global volatility.
- Expected market tone: After digesting the RBI policy and a turbulent global backdrop, domestic equities may trade in a range‑bound to slightly negative manner. Banks and FMCG stocks could continue to outperform due to supportive macro conditions, whereas IT and pharma may stay under pressure until global risk sentiment improves. Participants should monitor global market cues, US non‑farm payrolls data, commodity prices and further commentary from central banks. Near‑term volatility is likely to remain elevated, so investors should adopt a disciplined, stock‑specific approach.
