Sensex and Nifty Decline as Investors Anticipate RBI MPC Verdict

Synopsis

On February 6, the Indian stock market exhibited a decline, influenced by cautious investor sentiment ahead of the RBI's MPC decision on interest rates. The Sensex fell by 213.12 points, while the Nifty dropped by 92.95 points. Several stocks closed negatively, indicating uncertainty in the market.

Key Takeaways

Sensex decreased by 213.12 points.
Nifty fell by 92.95 points.
30 Nifty stocks ended in negative territory.
Key losers included Trent and Bharat Electronics.
Resilient sectors included Nifty Bank and Pharma.

Mumbai, Feb 6 (NationPress) The Indian stock market concluded Thursday on a lower note as investors adopted a cautious stance ahead of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decision regarding the anticipated rate cut set for February 7.

The Sensex dipped by 213.12 points, or 0.27 percent, to finish at 78,058.16. Throughout the day, this index fluctuated, reaching a high of 78,551.66 and a low of 77,843.99.

In a similar vein, the Nifty closed down by 92.95 points, or 0.39 percent, wrapping up at 23,603.35. The day saw the index peak at 23,773.55 and descend to a low of 23,556.25.

Among the stocks listed on the Nifty, 30 companies finished in the negative zone.

Notable declines were seen in Trent, Bharat Electronics, Bharti Airtel, ONGC, and Titan, which suffered losses of up to 8.39 percent.

Conversely, Adani Ports, Cipla, Infosys, and Dr. Reddy's Labs managed to register gains during intra-day trading, with increases of up to 2.51 percent.

The broader market mirrored this downward trend, with the Nifty Midcap100 sliding by 1.26 percent, while the Nifty Smallcap100 declined by 0.30 percent.

The sectoral indices on the NSE displayed a mixed performance amidst the cautious investor sentiment.

Indices such as Nifty Auto, FMCG, Consumer Durables, Realty, and Financial Services faced declines of up to 2.19 percent.

In contrast, sectors including Nifty Bank, IT, Pharma, Private Bank, and Healthcare showcased resilience, ending the session with modest gains of up to 0.64 percent.

“At current levels, around 87.30/40, the depreciation of the rupee aligns with the depreciation observed in emerging market currencies, including those in Latin America and Africa,” stated Dr. Joseph Thomas, Head of Research at Emkay Wealth Management.

He further noted that we should not underestimate the potential for increased dollar inflows into India due to repatriation by tech companies, which may have receivables from international operations.

Gold prices remained stable with slight weakness, hovering around Rs 84,450 in MCX, while Comex gold experienced a minor retracement towards $2,850.