Synopsis
On February 5, the Indian stock market closed lower amid global uncertainties, with investors awaiting the upcoming RBI MPC meeting and the Delhi election results. The BSE Sensex fell by 312.53 points, while smallcaps showed strength, indicating mixed market sentiment ahead.Key Takeaways
- Sensex declined by 312.53 points.
- Nifty ended 42.95 points lower.
- Smallcap indices saw strong gains.
- Investors are focused on RBI MPC meeting.
- Asian Paints dropped 4 percent.
Mumbai, Feb 5 (NationPress) The Indian stock market concluded Wednesday's session on a lower note following a volatile trading experience as investors remained cautious amid global uncertainties.
Attention is now directed towards the upcoming RBI monetary policy committee (MPC) meeting on February 7, which may signal a rate cut for the first time in five years, along with the results of the Delhi Assembly elections expected on February 8.
The BSE Sensex fell by 312.53 points, or 0.40 percent, closing at 78,271.28 after experiencing fluctuations with an intraday high of 78,735.41 and a low of 78,226.26.
The NSE Nifty also faced a decline, closing 42.95 points lower at 23,696.30 after reaching a high of 23,807.30 and a low of 23,680.45.
Several stocks contributed positively to the market, including Adani Ports, IndusInd Bank, Tata Motors, Tata Steel, HDFC Bank, and ICICI Bank, which all saw their share prices rise between 0.4 percent and 1.6 percent.
However, selling pressure was evident in stocks like Asian Paints, Nestle India, Titan Company, ITC, HUL, and L&T, with Asian Paints leading the decline with a drop of 4 percent.
The broader market outperformed the benchmark indices, with the Nifty MidCap index rising by 1.13 percent, and the Nifty SmallCap index witnessing an even stronger increase of 1.99 percent.
Most sectoral indices on the NSE closed positively, with exceptions in Nifty FMCG, Realty, Auto, and Consumer Durable indices, which fell by up to 1.85 percent.
Conversely, buying interest was noted in PSU Bank, Metal, OMCs, and Media stocks, with these indices climbing over 1 percent.
According to Aditya Gaggar of Progressive Shares, the markets initially opened strong but encountered resistance near the 23,800 levels and reversed course.
Without robust momentum, the index oscillated between positive and negative before concluding at 23,696.30 with a loss of 42.95 points. The Media and Energy sectors fared well, while the Realty and FMCG sectors experienced declines exceeding 1.5 percent, he noted.
Meanwhile, the Reserve Bank of India (RBI) is anticipated to reduce the repo rate by 25 basis points, aligning with the budget's aim to stimulate economic activity while maintaining a prudent fiscal strategy.
