Dear
Trader…
The benchmark BSE Sensex lost 213.12 points or 0.27% to close
at 78,058, while the broader Nifty Future index closed at 23688, lower by 83
points or 0.35%. The market capitalization of all listed companies on the BSE
decreased by Rs 3.06 lakh crore to Rs 424.97 lakh crore.
The Reserve Bank of India (RBI) is widely expected to cut
interest rates on Friday for the first time in nearly five years during
Governor Sanjay Malhotra’s first monetary policy review.
Market participants are evaluating the potential for a rate
reduction nearly a week after the federal budget, where the government cut
personal tax rates to stimulate consumption.
Global
Markets – Global stocks inched higher on Thursday, staging
a modest relief rally as worries over an escalating trade war between the U.S.
and its key trading partners eased. Meanwhile, the U.S. Treasury yields
softened as investors reassessed the outlook for interest rates.
Despite ongoing uncertainties under U.S. President Donald
Trump’s administration, markets took solace in the fact that conditions were
not as severe as feared, particularly regarding the tit-for-tat tariff
measures. This provided a boost to global equities while keeping the dollar in
check, offering some relief to its battered counterparts from earlier in the
week.
On Thursday, the People’s Bank of China set a
stronger-than-expected yuan midpoint fixing. However, the currency still
weakened after China appealed to the World Trade Organization to challenge the
new tariffs imposed by the Trump administration.
China’s CSI300 blue-chip index surged over 1% as investors
continued to pile into domestic AI firms following a breakthrough by Chinese
start-up DeepSeek. Meanwhile, the Shanghai Composite Index climbed 1.16%.
MSCI’s broadest index of Asia-Pacific shares outside Japan
gained 0.44%, while Japan’s Nikkei advanced 0.6%.
Currency
Watch – The Indian rupee fell to a record
low on Thursday, pressured by weakness in Asian peers and a prevailing bearish
outlook ahead of a crucial monetary policy decision. Uncertainty over U.S.
trade tariffs and persistent portfolio outflows have weighed on the currency
over the past two months, making it Asia’s worst performer in 2025.
The rupee touched an all-time low of 87.5825
during the session before settling at 87.5775, down 0.1% on the day and over 2%
year-to-date.
Meanwhile, the dollar index, which gauges the greenback’s
strength against a basket of six currencies, was trading 0.40% higher at
108.00.
Crude
Impact – Oil prices inched higher on Thursday
after Saudi Arabia’s state oil company significantly raised its March crude
prices. However, the gains did little to offset the previous day’s decline in
benchmark Brent crude. Brent crude futures rose 28 cents, or 0.4%, to $74.89 a
barrel by 0952 GMT.
FII/DII
Tracker – The Foreign institutional
investors (FIIs) turned net sellers on February 5, as they offloaded equities
worth Rs 1,682.83 crore, while domestic institutional investors (DIIs)
purchased equities worth Rs 996.28 crore.
Nifty futures opened at 23822 points against the previous
close of 23772 and opened at a low 23660 points. Nifty Future closed with an
average movement of 175 points and Decline of around 213 points and closed 23688
points…!!
Meanwhile,
The benchmark indices experienced a moderate
decline as investors awaited the RBI’s decision on a potential rate cut amidst
the ongoing trade war.
The broader market remained cautious, in a consolidation
phase, despite the government’s focus on boosting consumption to cushion lower
growth.
Technically,
the important key resistances are placed in Nifty future are at 23688 levels,
which could offer for the market on the higher side. stainability above this
zone would signal opens the door for a directional up move with immediate
resistances seen at 23737 – 23808 levels. Immediate support is placed at 23570 –
23303 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory.
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and related all the documents carefully before investing, mentioned on www.nikhilbhatt.in
