After falling for the past two sessions, Sensex and Nifty opened higher on February 4, following gains in Asian markets. This came after the U.S. temporarily delayed planned tariffs on Canada and Mexico, easing fears of a full-blown trade war. However, with tariffs on China still set to take effect, market volatility remains high. Investors are also closely watching the Reserve Bank of India’s (RBI) policy decision scheduled for February 7.
Market Performance at 9:45 AM
Sensex: Up 697 points (0.9%) at 77,884
Nifty: Up 204 points (0.9%) at 23,565
Advancing stocks: 2,312
Declining stocks: 670
Unchanged stocks: 127
Global Market Impact
U.S. President Donald Trump announced a 30-day delay on tariffs for Canada and Mexico in exchange for commitments on border security and crime enforcement. This provided some relief to Asian markets. However, tariffs on China are still expected to take effect at 10:31 AM, keeping investors cautious. Wall Street struggled overnight but recovered some losses after the announcement.
Expert Views on Market Volatility
According to Ruchit Jain, Vice President at Motilal Oswal Financial Services, uncertainty over U.S. tariffs is expected to keep markets volatile. The unpredictability of these policies adds to market concerns.
Since Budget 2025 was presented on February 1, the Sensex and Nifty have fallen 0.5% in two sessions as global trade worries overshadowed gains in consumption-driven sectors boosted by personal tax cuts. Jain noted that post-budget movements have been sector-specific, influenced by finance ministry announcements, while global factors also play a key role.
Broader Market and Midcap/Smallcap Outlook
BSE Midcap & BSE Smallcap: Up nearly 1% each.
Jain expects a one to three-month consolidation phase before any major rally. However, he sees this correction as a gradual buying opportunity for long-term investors.
Sectoral Performance
Nifty FMCG: The only sector in red, down 0.6%.
Biggest Losers: Colgate-Palmolive India, Hindustan Unilever, and United Breweries, falling 1-2%.
Nifty Auto: Up 1.5%.
Auto Ancillary Stocks: Sona BLW and Samvardhana Motherson rebounded 7% and 8%, recovering losses from February 1.
Top Gainers (Nifty 50): Bharat Electronics, Hindalco, ONGC, Tata Motors, and Infosys, rising 2-3%.
Top Losers (Nifty 50): Trent, Power Grid, HUL, Nestle, and Britannia, falling 1-3%.
Market Outlook
Although Sensex and Nifty are 10% below all-time highs, Jain does not expect a deep correction. Instead, he predicts a sideways movement or consolidation in the coming months.
Current market weakness is driven by:
Weak earnings
Slowing growth
Foreign Institutional Investors (FIIs) outflows (₹5,285 crore sold in February so far).
Key Resistance Levels for Nifty 50
Anand James, Chief Market Strategist at Geojit Financial Services, predicts that Nifty 50 will face resistance at 23,440, 23,700, and 23,840. However, if it fails to sustain above 23,320, upside momentum could weaken.
Disclaimer
The investment tips and views shared by experts are their own and do not reflect the opinions of the website or its management. Vedkhabar.com recommends users consult certified experts before making any investment decisions.