Market Roundup, February 5: Sensex, Nifty Struggle in Choppy Market; Broader Indices Gain

The Indian stock market ended on a weaker note on Wednesday, dragged down by selling in heavyweight stocks and concerns over global trade tensions. Additionally, market participants remained cautious ahead of the upcoming monetary policy meeting, where expectations of a rate cut have increased.

While large-cap stocks struggled, broader markets saw strong buying interest. The Nifty 50 closed 0.18% lower at 23,696, while the Sensex declined 0.40% to 78,271. On the other hand, the Nifty Smallcap 100 surged 1.85% to 17,108, and the Nifty Midcap 100 gained 0.68% to close at 54,180.

Shares of public-sector and energy companies witnessed notable gains, rising between 2% and 3%. The surge followed positive revisions in stock ratings from global investment firms, citing improved earnings potential. Analysts noted that one key company has held fuel prices steady for months, while competitors have already adjusted rates. With upcoming policy changes, a price increase may be on the horizon.

Also Read :- https://ipofront.in/sensex-nifty-rally-february-4-2025-stock-market-highlights/

Top Gainers & Losers on Nifty 50

FII & DII Activity

• Foreign Institutional Investors (FIIs) were net sellers, pulling out ₹1,245 crore from the Indian equity market, continuing their selling streak amid global uncertainties.
• Domestic Institutional Investors (DIIs), however, provided strong support with net purchases of ₹1,612 crore, helping cushion the impact of foreign outflows. The continued DII participation reflects strong confidence in domestic market fundamentals.

Market Sentiment & Factors at Play

Market sentiment remained mixed as investors balanced positive domestic factors, including a favourable budget, against global uncertainties. Lower crude oil prices and declining bond yields offered some relief, but currency fluctuations added to concerns. Interest in rate-sensitive sectors increased ahead of the monetary policy decision, while large-cap stocks appeared well-positioned due to moderation in valuations.

Also Read :- https://ipofront.in/market-roundup-february-3-sensex-and-nifty-slip-as-global-pressures-mount-rupee-hits-record-low/

Technical Outlook

The benchmark index fluctuated between 23,700 and 23,800 before closing slightly lower. Despite the mild pullback, the overall trend remains positive, as the index continues to hold above key moving averages.

• Upside Target: 24,050
• Support Level: 23,500 (high put writing activity)

The market remains in a consolidation phase, and a breakout above 24,050 could trigger further upside momentum. However, if the index falls below 23,500, short-term weakness could emerge.

Stay tuned for more updates on market trends and upcoming opportunities!