Indian stock markets ended lower on Wednesday, February 5, due to weak performance from major stocks and concerns over the ongoing U.S.-China trade war. Investors are also focused on the upcoming Reserve Bank of India (RBI) monetary policy meeting, with expectations of a possible interest rate cut on Friday.
Despite weakness in large-cap stocks, the broader market saw strong buying interest, helping it perform better. The Nifty 50 closed 0.18% lower at 23,696, while the Sensex fell 0.40% to 78,271 compared to Tuesday’s close.
After a strong recent rally, the stock market took a pause, as investors turned cautious ahead of the RBI’s policy decision and global trade tensions.
The BSE Sensex fell by 312.53 points (0.40%), closing at 78,271.28, with 21 stocks declining and 9 gaining. During the day, it dropped as much as 367.56 points (0.46%), reaching a low of 78,216.25.
The NSE Nifty slipped 42.95 points (0.18%), ending at 23,696.30. It fluctuated between a high of 23,807.30 and a low of 23,680.45 during the session.
Meanwhile, the Indian rupee weakened by 36 paisa, hitting a record low of 87.43 against the US dollar. This decline was driven by global trade war concerns, as investors reacted to the economic impact of tariffs imposed by the United States and China. Forex traders noted that market sentiment remained negative due to uncertainty in global trade policies.
Concerns over a possible rate cut by the Reserve Bank of India (RBI) and the strong US dollar in global markets further hurt investor sentiment.
At the interbank foreign exchange, the rupee opened weak at 87.13 and dropped to an intraday low of 87.49 against the US dollar.
By the end of the session, the rupee closed at a record low of 87.43, down 36 paisa from its previous close.
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Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said that the Indian stock markets ended lower, following weak global trends. Selling pressure was seen in banking, auto, real estate, and FMCG stocks, while mid and small-cap stocks performed well as investors took advantage of recent price drops.
With Friday’s monetary policy announcement approaching, markets may see increased intraday volatility in the coming sessions.
Key Levels for Bank Nifty and Nifty
Key Levels for Nifty
Nifty opened on a positive note but traded in a narrow range before closing lower at 23,696.
Mid and Small-cap indices outperformed, with Nifty Midcap 100 up 0.68% and Nifty SmallCaps 100 gaining 1.85%.
Technically, Nifty formed a red candle near trendline resistance, signalling profit booking.
Support levels: 23,600–23,630
Resistance levels: 23,800–23,810
A breakout in either direction will decide Nifty’s next move.
Key Levels for Bank Nifty
Bank Nifty opened higher, attracted buying interest, and closed positively at 50,343.
The index faced resistance near its previous breakdown point, leading to profit booking and the formation of a spinning top candlestick pattern.
Support level: 50,000
Resistance level: 50,600
A breakout above or below these levels will determine the next trend.
In summary, the market remains volatile, and traders should watch key support and resistance levels closely for future direction.
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