{"id":10209,"date":"2026-02-04T13:03:10","date_gmt":"2026-02-04T13:03:10","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?p=10209"},"modified":"2026-02-04T13:03:12","modified_gmt":"2026-02-04T13:03:12","slug":"india-market-outlook-4-february-2026","status":"publish","type":"post","link":"https:\/\/lemonn.co.in\/blog\/market-updates\/india-market-outlook-4-february-2026\/","title":{"rendered":"India Market Outlook – 4 February\u00a02026"},"content":{"rendered":"
\"nifty<\/figure>\n\n\n

Overview<\/h2>\n\n\n\n

Indian equities closed marginally higher on 4 February 2026<\/strong>, ending a two\u2011day rally but retaining most of the strong gains generated after the announcement of the India\u2013US trade deal earlier this week. The Nifty 50<\/strong> added roughly 0.19 %<\/strong> to finish at 25,776<\/strong>, while the BSE Sensex<\/strong> rose 0.09 %<\/strong> to 83,817<\/strong>. Profit\u2011taking in large IT names offset gains in autos, consumer durables and metals. Mid\u2011cap and small\u2011cap indices outperformed large caps as value buying continued, and foreign institutional investors (FIIs) were net buyers for a second straight session.<\/p>\n\n\n\n

Top indices<\/h2>\n\n\n\n
Index<\/th>Level\/Change<\/th>Comments<\/th><\/tr><\/thead>
Nifty 50<\/strong><\/td>25,776.00 (+0.19 %)<\/strong><\/td>Held above 25,750 after an intraday swing. Gains in autos, metals and consumer stocks offset heavy losses in IT.<\/td><\/tr>
BSE Sensex<\/strong><\/td>83,817.69 (+0.09 %)<\/strong><\/td>Index closed flat after choppy trade. Stocks such as Trent, Eternal, Power Grid, NTPC and Adani Ports cushioned the benchmark while IT majors dragged.<\/td><\/tr>
Nifty Bank<\/strong><\/td>\u224860,000 (\u2248+0.3 %)<\/strong><\/td>Banking gauge ended higher; strength in PSU and private banks partly offset losses in Kotak Bank and Axis Bank.<\/td><\/tr>
Nifty MidCap 100<\/strong><\/td>+0.63 %<\/strong><\/td>Mid\u2011caps outperformed as stock\u2011specific buying continued after the budget and trade\u2011deal driven rally.<\/td><\/tr>
Nifty SmallCap 100<\/strong><\/td>+1.27 %<\/strong><\/td>Small\u2011caps rallied; broader market breadth remained positive.<\/td><\/tr>
India VIX<\/strong><\/td>declined to around 11.5<\/strong><\/td>Volatility index cooled as the market consolidated near recent highs.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Sector performance<\/h2>\n\n\n\n
Sector index<\/th>Performance<\/th>Notes<\/th><\/tr><\/thead>
Nifty IT<\/strong><\/td>\u22125.87 %<\/strong><\/td>Sector was the day\u2019s worst performer. Heavyweights Infosys, TCS, HCL Tech and Tech Mahindra plunged 4\u20137 % after a sharp sell\u2011off in US software stocks on fears that AI\u2011driven tools could hurt traditional outsourcing businesses.<\/td><\/tr>
Nifty Pharma \/ Healthcare<\/strong><\/td>\u2248\u22120.3 %<\/strong><\/td>Mild profit\u2011taking; Divi\u2019s Labs held gains after strong Q3 results.<\/td><\/tr>
Nifty Auto<\/strong><\/td>+1.18 %<\/strong><\/td>Benefited from strong vehicle sales data and optimism over exports following Mahindra\u2019s large export order. Maruti and M&M gained.<\/td><\/tr>
Nifty Metal<\/strong><\/td>+1.27 %<\/strong><\/td>Metals extended gains for a second session on hopes that the India\u2013US trade deal would boost exports and after global metal prices firmed.<\/td><\/tr>
Nifty Realty<\/strong><\/td>+1.12 %<\/strong><\/td>Sector found support ahead of the RBI policy; improved demand outlook post\u2011budget continued to aid sentiment.<\/td><\/tr>
Nifty Consumer Durables<\/strong><\/td>+2.66 %<\/strong><\/td>Best\u2011performing index as discretionary stocks caught a bid. Titan and other consumer names rallied.<\/td><\/tr>
Nifty Oil & Gas<\/strong><\/td>+2.08 %<\/strong><\/td>Oil marketing companies and gas utilities advanced amid stable crude prices; BPCL saw momentum after a breakout on the technical charts.<\/td><\/tr>
Nifty Financial Services<\/strong><\/td>+0.46 %<\/strong><\/td>Financials stayed firm, aided by PSU banks and insurance stocks.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Key statistics<\/h2>\n\n\n\n
    \n
  • Market breadth:<\/strong> On the NSE, approximately 1,630 stocks advanced<\/strong>, 921 declined<\/strong> and 90 remained unchanged<\/strong>, reflecting a bullish bias despite volatility.<\/li>\n\n\n\n
  • Trading range:<\/strong> Nifty had an intraday range of ~240\u00a0points; it oscillated between 25,563 and 25,802.<\/li>\n\n\n\n
  • FIIs\/DII activity:<\/strong> Foreign institutional investors were net buyers of about \u20b95,236\u00a0crore<\/strong> in cash equities on 3\u00a0February (data released a day later), while domestic institutions bought around \u20b91,014\u00a0crore<\/strong>. This buying helped support markets following the prior day\u2019s trade\u2011deal rally.<\/li>\n\n\n\n
  • Rupee:<\/strong> The Indian rupee strengthened modestly near \u20b990.40 per US\u00a0dollar, its best level in six years, as optimism around the trade deal and stable crude prices attracted foreign inflows.<\/li>\n<\/ul>\n\n\n\n

    Top gainers and losers<\/h2>\n\n\n\n

    Nifty 50 top gainers<\/h2>\n\n\n\n
    Stock<\/th>Price change (approx.)<\/th>Rationale\/remarks<\/th><\/tr><\/thead>
    Trent<\/strong><\/td>+5.1 %<\/strong><\/td>Retailer continued its winning streak; investors bet on strong festive demand and margin expansion.<\/td><\/tr>
    Eternal (Eicher Motors)<\/strong><\/td>+5.0 %<\/strong><\/td>Stock rallied on hopes of export growth; premium motorcycle sales remain robust.<\/td><\/tr>
    Power Grid<\/strong><\/td>+2.3 %<\/strong><\/td>Gains followed reports of new interstate transmission projects.<\/td><\/tr>
    NTPC<\/strong><\/td>+2.3 %<\/strong><\/td>Market cheered commissioning of 125 MW from its Bhadla solar project; renewable capacity build\u2011up supports longer\u2011term earnings.<\/td><\/tr>
    Adani Ports<\/strong><\/td>+2.2 %<\/strong><\/td>Stock extended gains on expectations that reduced US tariffs and robust cargo volumes will boost profitability.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Nifty 50 top losers<\/h2>\n\n\n\n
    Stock<\/th>Price change (approx.)<\/th>Rationale\/remarks<\/th><\/tr><\/thead>
    Infosys<\/strong><\/td>\u22127.3 %<\/strong><\/td>Dragged by heavy selling in global IT stocks after an AI\u2011powered productivity tool from Anthropic raised concerns about margin pressures; cross\u2011currency headwinds also weighed.<\/td><\/tr>
    Tata Consultancy Services<\/strong><\/td>\u22127.0 %<\/strong><\/td>Followed the broader IT sell\u2011off; traders booked profits ahead of earnings from US tech majors.<\/td><\/tr>
    HCL Technologies<\/strong><\/td>\u22124.5 %<\/strong><\/td>Weak sentiment in the sector and fears about slowing outsourcing demand hurt shares.<\/td><\/tr>
    Tech Mahindra<\/strong><\/td>\u22124.3 %<\/strong><\/td>Continued to decline after results; global IT rout added pressure.<\/td><\/tr>
    Axis Bank<\/strong><\/td>\u22121.3 %<\/strong><\/td>Profit\u2011taking after a sharp rally.<\/td><\/tr>
    Kotak Mahindra Bank<\/strong><\/td>\u22120.8 %<\/strong><\/td>Investors rotated into PSU banks and other private lenders.<\/td><\/tr>
    Bajaj Finance<\/strong><\/td>\u22120.1 %<\/strong><\/td>Flat to lower ahead of its results announcement.<\/td><\/tr>
    Hindustan Unilever<\/strong><\/td>\u22120.0 %<\/strong><\/td>Stayed almost flat; defensive FMCG stocks lagged as investors rotated into cyclicals.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Broader\u2011market movers<\/h2>\n\n\n\n
    Stock<\/th>Change<\/th>Catalyst<\/th><\/tr><\/thead>
    Suven Life Sciences<\/strong><\/td>+15.4 %<\/strong><\/td>Announced strong Q3 results and positive commentary on its drug discovery pipeline.<\/td><\/tr>
    Sheela Foam<\/strong><\/td>+14.2 %<\/strong><\/td>Posted better\u2011than\u2011expected quarterly earnings; demand for mattresses remains robust.<\/td><\/tr>
    Avanti Feeds<\/strong><\/td>+12.2 %<\/strong><\/td>Market responded positively to margin recovery and optimistic export outlook.<\/td><\/tr>
    Adani Power<\/strong><\/td>+7.4 %<\/strong><\/td>Benefited from improved tariffs and government emphasis on thermal capacity addition.<\/td><\/tr>
    IDBI Bank<\/strong><\/td>+6.7 %<\/strong><\/td>Reports indicated that strategic stake sale may attract strong suitors; PSU banks stayed in favour.<\/td><\/tr>
    Latent View Analytics<\/strong><\/td>\u22127.5 %<\/strong><\/td>Fell on concerns over growth after a mid\u2011cap IT sell\u2011off.<\/td><\/tr>
    Triveni Turbine<\/strong><\/td>\u22127.2 %<\/strong><\/td>Declined despite strong order book; profit\u2011taking after a steep rally.<\/td><\/tr>
    Coforge<\/strong><\/td>\u22126.0 %<\/strong><\/td>Hit by sector\u2011wide weakness in IT services names.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    What moved the market<\/h2>\n\n\n\n
      \n
    • IT sell\u2011off:<\/strong> US markets sold off sharply on 3\u00a0February as investors reassessed the impact of generative\u2011AI tools on software companies\u2019 business models. The rout spilled over to India, triggering heavy profit\u2011booking in Infosys, TCS, HCL\u00a0Tech and Tech\u00a0Mahindra and dragging down the Nifty\u00a0IT index by nearly 6\u00a0%<\/strong>.<\/li>\n\n\n\n
    • India\u2013US trade deal euphoria moderates:<\/strong> The early\u2011week surge driven by the announcement of the India\u2013US trade agreement slowed as investors digested details. Analysts note that while reduced US tariffs will be positive for exporters (textiles, gems and jewellery, autos), the rally could face hurdles given elevated valuations and uncertain global growth.<\/li>\n\n\n\n
    • FII inflows sustain momentum:<\/strong> Foreign investors bought equities worth ~\u20b95,236\u00a0crore<\/strong> in the previous session, reversing a long selling streak. The inflows, along with DII support of ~\u20b91,014\u00a0crore<\/strong>, offered a cushion during intraday dips.<\/li>\n\n\n\n
    • Global cues mixed:<\/strong> Weak US cues weighed on sentiment, while Asian markets traded mixed. Japan\u2019s Nikkei\u00a0225 fell ~0.5\u00a0%, Hong Kong\u2019s Hang\u00a0Seng declined slightly and South Korea\u2019s Kospi was up. Oil prices stayed near $67\/bbl, limiting inflation concerns. Investors also monitored geopolitical tensions in the Middle\u00a0East and forthcoming earnings from global tech giants.<\/li>\n\n\n\n
    • Domestic macro and policy outlook:<\/strong> Participants looked ahead to the Reserve Bank of India\u2019s Monetary Policy Committee (MPC) meeting scheduled for 6\u00a0February\u00a02026<\/strong>. Analysts widely expect the MPC to maintain the policy rate and adopt a dovish tone, which could support rate\u2011sensitive sectors. Meanwhile, the rupee\u2019s strength and easing bond yields improved sentiment in financial stocks.<\/li>\n<\/ul>\n\n\n\n

      Corporate updates and stock\u2011specific news<\/h2>\n\n\n\n
        \n
      • Bajaj\u00a0Finserv Q3 results:<\/strong> The financial conglomerate announced consolidated Q3\u00a0FY26 total income of \u20b939,708\u00a0crore<\/strong> and profit after tax of \u20b92,936\u00a0crore<\/strong> before exceptional items. Shares were largely flat ahead of the result; analysts expect moderate growth given rising credit costs.<\/li>\n\n\n\n
      • Devyani\u00a0International results:<\/strong> Quick\u2011service\u2011restaurant operator reported a \u20b910.9\u00a0crore<\/strong> net loss for Q3, though revenue stood at \u20b91,440\u00a0crore<\/strong>; shares gained after the numbers beat street expectations.<\/li>\n\n\n\n
      • BHEL\u2019s major order:<\/strong> Bharat Heavy Electricals (BHEL) received a \u20b91,200\u20131,500\u00a0crore<\/strong> contract from Hindalco for supplying a 2\u00d7150\u00a0MW BTG package for the Aditya aluminium expansion. The order underscores BHEL\u2019s improving order book.<\/li>\n\n\n\n
      • Mahindra\u2019s export deal:<\/strong> Mahindra &\u00a0Mahindra secured its largest\u2011ever export order<\/strong>, agreeing to deliver 35,000 units of the Scorpio\u00a0Pik Up to an Indonesian state\u2011owned enterprise. The deal exceeds the company\u2019s entire FY25 export volumes and boosted the stock.<\/li>\n\n\n\n
      • NTPC renewable expansion:<\/strong> NTPC Renewable Energy commenced commercial operation of a 125\u00a0MW block at its 500\u00a0MW Bhadla Solar project in Rajasthan, pushing up its renewable capacity. NTPC\u2019s stock rallied as investors priced in higher renewable revenue.<\/li>\n\n\n\n
      • Sebi on F&O framework:<\/strong> The market regulator clarified that it will not introduce new restrictions on the derivatives segment despite the increased securities transaction tax announced in the budget, providing relief to traders.<\/li>\n\n\n\n
      • HAL under pressure:<\/strong> Hindustan\u00a0Aeronautics declined over 8\u00a0%<\/strong> intraday after reports it was not selected in the technical evaluation for the Aeronautical\u00a0Development Agency\u2019s AMCA fighter jet programme. Bidders such as Tata\u00a0Advanced\u00a0Systems, L&T and Bharat Forge emerged as front\u2011runners.<\/li>\n<\/ul>\n\n\n\n

        Stocks to watch (5 February 2026)<\/h2>\n\n\n\n
        Stock<\/th>Why it\u2019s in focus<\/th><\/tr><\/thead>
        BPCL<\/strong><\/td>Technical breakout above resistance around \u20b9370; momentum indicators remain positive. A sustained move could take the stock towards \u20b9395\u2013400.<\/td><\/tr>
        Torrent Pharma<\/strong><\/td>Uptrend intact; respecting 50\u2011day exponential moving average. May head toward \u20b94,280 if it holds above \u20b93,915.<\/td><\/tr>
        UPL<\/strong><\/td>Rebounded from its 200\u2011day exponential moving average with a gap\u2011up move. A move past \u20b9780 could confirm further upside; stop loss near \u20b9720.<\/td><\/tr>
        BHEL<\/strong><\/td>Fresh order from Hindalco could improve earnings visibility. Watch for follow\u2011through buying; support around \u20b9185, resistance near \u20b9210.<\/td><\/tr>
        Mahindra & Mahindra<\/strong><\/td>Largest export order will drive sentiment; stock has momentum with support near \u20b93,500.<\/td><\/tr>
        HAL<\/strong><\/td>Stock came under pressure after missing the AMCA bid. Investors will watch for any clarifications; oversold conditions may lead to a technical bounce.<\/td><\/tr>
        Bajaj Finserv<\/strong><\/td>Post\u2011results movement will be watched to gauge earnings outlook and loan growth.<\/td><\/tr>
        Devyani International<\/strong><\/td>Shares gained after quarterly results; sustained buying could extend rally.<\/td><\/tr>
        NTPC & Power Grid<\/strong><\/td>Renewable capacity addition and demand for transmission projects make both PSU utilities attractive in the medium term.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

        Technical outlook for 5 February 2026<\/h2>\n\n\n\n
          \n
        • Nifty\u00a050:<\/strong> The index has been consolidating after its sharp rally. Technical charts suggest that holding 25,500<\/strong> is crucial for bulls. As long as the index stays above this support, it could attempt to test 25,900\u201326,000<\/strong> in the near term. A breakout above 26,000<\/strong> could open the door for a push towards 26,200<\/strong>. However, a fall below 25,500<\/strong> may trigger profit\u2011booking toward 25,300<\/strong>. Options data show maximum call open interest at 26,000<\/strong> and maximum put open interest at 25,500<\/strong>, indicating a trading range of 25,500\u201326,000<\/strong>.<\/li>\n\n\n\n
        • Nifty\u00a0Bank:<\/strong> The banking index needs to hold above 59,750<\/strong> to maintain its bullish bias. Resistance is seen near 60,500<\/strong> and 60,750<\/strong>. A failure to hold 59,750<\/strong> could drag the index towards 59,500<\/strong>. Traders should watch PSU banks, which have shown relative strength, while being cautious on Kotak\u00a0Bank and Axis\u00a0Bank.<\/li>\n\n\n\n
        • Market tone:<\/strong> Given the mixed global cues and the looming RBI policy meeting, the market is expected to remain range\u2011bound with a positive bias<\/strong>. Rotation into select sectors and stock\u2011specific action may continue. Traders should adopt a buy\u2011on\u2011dips<\/strong> strategy in structurally strong sectors such as autos, consumer durables, metals and oil & gas, while remaining cautious on IT and expensive high\u2011growth names. Volatility could rise ahead of the MPC outcome; appropriate risk management is essential.<\/li>\n<\/ul>\n\n\n\n

          Outlook for tomorrow<\/h2>\n\n\n\n

          For 5 February 2026<\/strong>, investors should monitor:<\/p>\n\n\n\n

            \n
          1. RBI Monetary Policy expectations:<\/strong> Market participants expect the MPC to keep the repo rate unchanged at 6.5\u00a0% and maintain a neutral-to-dovish stance. Any surprise on policy rates or tone could influence banks, financial services and rate\u2011sensitive sectors.<\/li>\n\n\n\n
          2. Global market cues:<\/strong> Overnight moves in US equities and Asian markets will set the tone. Attention will be on earnings from Alphabet and Amazon and on any geopolitical developments.<\/li>\n\n\n\n
          3. FII flows and rupee movement:<\/strong> Continued foreign inflows and a strong rupee would support equities. A reversal in FII trends could add volatility.<\/li>\n\n\n\n
          4. Corporate earnings:<\/strong> Bajaj Finserv\u2019s reaction after results, along with announcements from BPCL, Torrent\u00a0Pharma and UPL, may influence sectoral momentum.<\/li>\n\n\n\n
          5. Technical levels:<\/strong> Nifty\u2019s 25,500 support and 25,900\u201326,000 resistance are key. On breakouts or breakdowns, traders should adjust positions accordingly.<\/li>\n<\/ol>\n\n\n\n

            Overall, the Indian market appears poised for a consolidation phase with selective strength<\/strong>. Investors should remain stock\u2011specific and monitor global cues, institutional flows and domestic policy developments.<\/p>\n","protected":false},"excerpt":{"rendered":"

            Overview Indian equities closed marginally higher on 4 February 2026, ending a two\u2011day rally but retaining most of the strong gains generated after the announcement of the India\u2013US trade deal earlier this week. The Nifty 50 added roughly 0.19 % to finish at 25,776, while the BSE Sensex rose 0.09 % to 83,817. Profit\u2011taking in large IT names offset gains in […]<\/p>\n","protected":false},"author":3,"featured_media":8209,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[512],"tags":[],"class_list":["post-10209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-updates"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/comments?post=10209"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10209\/revisions"}],"predecessor-version":[{"id":10210,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/posts\/10209\/revisions\/10210"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media\/8209"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/categories?post=10209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/tags?post=10209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}