The Indian equity markets experienced moderate losses early on Friday as investors awaited cues from the RBI Monetary Policy Committee (MPC) decision on the key repo rate. By 9:25 am, Sensex was down 134 points, or 0.16%, at 83,179, and Nifty dropped 56 points, or 0.22%, to 25,586. Notably, the Nifty Midcap 100 and Nifty Smallcap 100 indices also saw declines of 0.48% and 0.97%, respectively.
Major sectoral indices, except for PSU bank, private bank, and oil and gas, traded in the red. Notable losers included the IT sector, down 1.76%, and the pharma sector, down 1.03%. Market watchers indicated that the immediate support for Nifty is at the 25,450-25,500 zone, while resistance is expected at the 25,750–25,800 zone.
The MPC is set to announce its decision, widely anticipated to maintain the repo rates at 5.25%. The focus is likely to be on liquidity management and transmission. Since February 2025, the RBI has reduced the repo rate by 125 basis points. Asian-Pacific markets showed mixed trends, influenced by a tech-led rout on Wall Street.
In Asian markets, China’s Shanghai and Shenzhen indices saw gains, while Japan’s Nikkei and Hong Kong’s Hang Seng Index experienced fluctuations. South Korea’s Kospi witnessed a decline. The US markets closed in the red, with Nasdaq, S&P 500, and Dow Jones all registering losses. Foreign institutional investors (FIIs) net sold equities worth Rs 2,151 crore on February 5, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,130 crore.
