Market Roundup, February 3: Sensex and Nifty Slip as Global Pressures Mount, Rupee Hits Record Low

The Indian stock market started the week on a weak note, with both benchmark indices—Sensex and Nifty—facing losses on Monday, February 3. Investors remained cautious ahead of the Reserve Bank of India’s (RBI) upcoming monetary policy announcement and global uncertainties weighed on sentiment.

Adding to the pressure, the Indian rupee fell to a record low of 87.28 per US dollar before settling at 87.19, marking a 0.7% intraday decline, its sharpest single-day drop since January 13. This was primarily due to rising US trade tariffs and heightened geopolitical concerns.

Market Movement and Key Numbers

• The BSE Sensex closed at 77,186.74, down 319.22 points (-0.41%).
• The NSE Nifty 50 ended at 23,361.05, losing 121.10 points (-0.52%).

Despite the bearish trend, the Indian market saw some relief as manufacturing sector activity picked up. The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 57.7 in January, up from 56.4 in December. This growth was driven by an increase in buying activity, record job creation, and reduced cost pressures, even as selling prices remained elevated due to strong demand.

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Global Markets in Turmoil Stock markets worldwide traded in the red as the United States officially launched new trade tariffs, sparking concerns over economic growth. The Dow Jones and Nasdaq, which recently touched record highs, slipped on Friday, and their decline set the tone for Asian markets, which opened lower on Monday.

• Japan’s Nikkei dropped 1,000 points
• Hong Kong’s Hang Seng Index fell 340 points
• South Korea’s Kospi Index declined 2.8% (71 points)
• China’s Manufacturing PMI came in at 50.1, below market expectations of 50.5, signalling slow growth in its struggling manufacturing sector.

Key Developments from Monday’s Market Session

Market Statistics:

• Total stocks traded on NSE: 2,928
  • Declined: 2,063
  • Gained: 787
  • Unchanged: 78
• 52-week highs: 34 stocks
• 52-week lows: 79 stocks
• Upper circuit hits: 62 stocks
• Lower circuit hits: 191 stocks

Top Gainers and Losers on Nifty 50:

✅ Top 5 Gainers:

1. Bajaj Finance (+5.12%)
2. Shriram Finance
3. Mahindra & Mahindra
4. Wipro
5. Bajaj Finserv

❌ Top 5 Losers:

1. Larsen & Toubro (-4.69%)
2. Tata Consumers
3. Hero MotoCorp
4. Coal India
5. Bharat Electronics

Broader Market Performance

The broader market was also under pressure, with both mid-cap and small-cap stocks facing significant selling.

• BSE MidCap Index fell to 42,677.47, down 0.89% (382.23 points)
• BSE SmallCap Index dropped to 49,756.28, down 1.77% (887.50 points)
  • The small-cap index is now down over 16% from its 52-week high of 57,827.69, recorded on December 12, 2024.

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Sectoral Performance: Who Gained and Who Lost?

Most sectoral indices ended in the red, with capital goods and industrials facing the steepest declines.

📉 Biggest Sectoral Losers:

• Capital Goods: -4.29%
• Industrials: -3.79%
• Power: -3.30%
• Utilities: -2.71%
• Oil & Gas: -2.52%

📈 Sectors That Held Ground: A handful of sectors managed to stay resilient, supported by strong demand and positive earnings expectations.

Outlook: What to Watch Next?

1. RBI’s Monetary Policy Announcement: Investors are keenly awaiting the RBI’s stance on interest rates later this week, which could set the market’s direction.
2. Global Trade Tensions: The escalation of US tariffs on multiple countries could continue to impact global investor sentiment.
3. Rupee’s Performance: A weaker rupee could lead to higher import costs, affecting multiple industries, including automobile, oil, and manufacturing.
4. Q4 Corporate Earnings: Market players will track corporate earnings to gauge the impact of economic headwinds on different sectors.

While markets are currently under pressure, investors will be watching key domestic and global factors to determine the next move. Stay tuned for further updates on market trends and policy shifts!