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Markets Dip Ahead of RBI Rate Decision; IT, Pharma Lead Losses

Indian equity markets opened lower as investors adopted a cautious stance ahead of the RBI Monetary Policy Committee's decision on key interest rates. The Nifty Midcap 100 and Smallcap 100 indices saw sharper declines, while sectoral performance was weak except for banking and oil & gas. Global cues were mixed, with Asian markets showing varied trends and US indices closing in the red overnight. The market's focus remains squarely on the RBI's policy announcement, with expectations set for the repo rate to remain unchanged.

Key Points: Stock Markets Open Lower Ahead of RBI Policy Decision

  • Markets await RBI policy decision
  • IT and pharma sectors lead losses
  • Midcap and smallcap indices underperform
  • Asian markets trade mixed
2 min read

Stock markets open lower ahead of key RBI policy rate decision

Sensex and Nifty fall as investors await RBI MPC's rate decision. IT and pharma sectors lead losses amid mixed global cues.

"Immediate support for Nifty lies at 25,450-25,500 zone, while resistance is anchored at 25,750-25,800 zone - market watchers"

Mumbai, Feb 6

The Indian equity markets posted moderate losses in the early session on Friday, as investors waited for cues from the RBI Monetary Policy Committee decision on the key repo rate.

As of 9.25 am, Sensex lost 134 points, or 0.16 per cent, to 83,179, and Nifty eased 56 points, or 0.22 per cent to 25,586.

Main broad-cap indices posted strong losses, as the Nifty Midcap 100 eased 0.48 per cent, and the Nifty Smallcap 100 edged down 0.97 per cent.

Major sectoral indices traded in red, expect PSU bank, private bank as well as oil and gas. Most notable losers were IT, down 1.76 per cent and pharma, down 1.03 per cent.

Immediate support for Nifty lies at 25,450-25,500 zone, while resistance is anchored at 25,750-25,800 zone, market watchers said.

The MPC policy committee set to announce the decision and is widely expected to keep repo rates unchanged at 5.25 per cent, with focus likely to remain on liquidity management and transmission.

Since February 2025, the RBI has cut repo rate by 125 basis points (bps).

Meanwhile, the Asian-Pacific markets traded mixed, tracking another tech-led rout on Wall Street.

In Asian markets, China's Shanghai index added 0.11 per cent, and Shenzhen added 0.65 per cent, Japan's Nikkei gained 0.51 per cent, and Hong Kong's Hang Seng Index edged down 1.19 per cent. South Korea's Kospi lost 1.79 per cent.

The US markets ended in the red overnight as Nasdaq eased 1.59 per cent. The S&P 500 declined 1.23 per cent, and the Dow Jones lost 1.2 per cent.

On February 5, foreign institutional investors (FIIs) net sold equities worth Rs 2,151 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,130 crore.

- IANS

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Reader Comments

P
Priya S
Smallcap index down nearly 1% is worrying for retail investors like me. My portfolio is bleeding red today. Hope RBI gives some positive guidance on liquidity. The transmission of past rate cuts to loans hasn't been fast enough, honestly.
R
Rohit P
IT stocks taking a hit because of the US tech rout. Our IT sector is so tied to Nasdaq's fortunes. Focus should be on domestic consumption stories now. PSU banks holding up is a good sign for the economy.
S
Sarah B
Watching from the US. The global market connection is clear. When Nasdaq sneezes, Indian IT catches a cold. Interesting to see China's markets up slightly while others fall. RBI holding rates steady is the prudent move with inflation concerns still around.
V
Vikram M
A 0.16% drop in Sensex is just noise in a long bull market. Corrections are healthy. The 125 bps cut since last year is significant. Patience is key. Let's see what the Governor says about growth projections. 🇮🇳
K
Karthik V
The article rightly points to the support and resistance levels. 25,450 is a crucial level for Nifty to hold. If it breaks, we could see more panic selling. Hoping for a status quo and neutral stance from RBI to calm the markets.

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