Indian stocks opened slightly lower on Thursday despite positive global cues, with investors remaining cautious ahead of the Reserve Bank of India’s monetary policy decision expected tomorrow.
The Sensex opened at 78,513.36 compared to its previous close of 78,271.28 and is currently trading at 78,157.75, down by 113.53 points or 0.15 per cent. Similarly, the Nifty opened at 23,761.95 against its previous close of 23,696.30 and is now at 23,662.70, losing 33.60 points or 0.14 per cent. This lackluster response comes even as Asian markets saw gains of up to 0.5 per cent following overnight gains in US indices.
“The market is moving into a consolidation phase on expectations of a pick up in growth in the coming quarters,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “In the near-term, the market is likely to get a mild boost from a possible 25 bp rate cut by the MPC tomorrow.”
PSU banks showed strength in sectoral indices, while capital goods and auto stocks faced selling pressure. Top gainers on the Nifty included BPCL, up 1.99 per cent to ₹266.45, followed by ITC Hotels, which gained 1.89 per cent. Dr Reddy’s Laboratories, Cipla, and Bajaj Finance also saw gains ranging from 0.96 per cent to 1.80 per cent.
On the flip side, M&M led the losers, dropping 1.40 per cent, while Titan, UltraTech Cement, Shriram Finance, and Tata Steel declined between 1.12 per cent and 1.37 per cent.
The services sector showed signs of moderation, with the HSBC India Services PMI falling to 56.5 in January from 59.3 in December, marking the slowest expansion in two years. The Composite PMI also declined to a 14-month low of 57.7.
“India’s service sector has experienced a significant slowdown in growth during January, driven by several macroeconomic factors,” noted Ms. VLA Ambala, Co-Founder of Stock Market Today.
In the broader markets, quarterly earnings remained in focus, with seven Nifty heavyweights, including State Bank of India, ITC, and Bharti Airtel, scheduled to announce results today.
Global cues were supportive, with crude oil prices weakening to $74 per barrel and the dollar index slipping below 108. Gold prices continued their upward trajectory, reaching a fresh record high of $2,867 per ounce.
“The macro trend in the US is turning favorable for EMs like India. The dollar index slipping to 107.56 and the 10-year yield declining to 4.4 per cent are positives,” added Vijayakumar.
Foreign institutional investors (FIIs) remained net sellers on February 5, offloading equities worth ₹1,682.83 crore, while domestic institutional investors bought shares worth ₹996.28 crore.
Technically, analysts suggest the market structure remains positive despite near-term consolidation. “We believe the ideal strategy should be to buy on dips,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities, identifying key support levels at 23,650 and resistance around 23,850-24,000.
