Business News | Sensex, Nifty Closed in Red; Investors Waiting for RBI Decision on Rate Cut Says Experts

Mumbai (Maharashtra) [India], February 6 (ANI): The Indian stock market closed in negative territory on Tuesday, with the Sensex declining by 213.12 points to settle at 78,058.16, while the Nifty slipped 92.95 points to end at 23,603.35.

Market sentiment remained cautious as investors awaited the Reserve Bank of India's (RBI) policy decision, leading to a consolidation phase across sectors.

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Out of the Nifty 50 companies, 21 stocks advanced while 30 declined. Among the top gainers were Cipla, Adani Ports, ITC Hotels, Dr. Reddy's, and HDFC Life. On the other hand, Trent, BEL, Bharti Airtel, Titan, and ONGC emerged as the biggest losers, dragging the index lower.

Vinod Nair, Head of Research at Geojit Financial Services, commented on the market's movement, stating, "The benchmark indices experienced a moderate decline as investors awaited the RBI's decision on a potential rate cut amidst the ongoing trade war."

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He said, "The broader market remained cautious, in a consolidation phase, despite the government's focus on boosting consumption to cushion lower growth. Meanwhile, the IT and Pharma sectors advanced supported by lower treasury yields after moderating US PMI data, encouraging the Fed to reduce interest rates."

Meanwhile, the Indian rupee continued to weaken, making a new low falling by 0.13 rupees to 87.57 against the US dollar.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, highlighted the factors behind the rupee's depreciation, stating, "Rupee weakened further by 0.13rs to 87.57, as the budget's middle-class focus led to currency weakness, while continued FII selling pressure added to the downside. All eyes are now on the RBI policy tomorrow, which could be a key trigger for rupee movement."

He added, "With minor expectations of a rate cut, a growth-focused policy could provide some relief and help the rupee recover in the near term. However, if the RBI remains cautious and avoids aggressive intervention, rupee weakness may persist. The expected range for a weak rupee remains between 87.25-87.85."

Looking ahead, market participants will closely monitor the RBI's policy stance, which could provide further direction to equities and currency movement. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)