Indian Stock Market: The Indian frontline indices ended Wednesday’s session (February 5) in the red, weighed down by weak support from heavyweight stocks and the escalating U.S.-China trade war. Additionally, investor focus has shifted to the Reserve Bank of India’s upcoming monetary policy meeting under the new governor, with expectations of a rate cut when the meeting concludes on Friday.
While large-cap stocks continued to struggle in today’s trade, the broader market performed well, supported by strong buying across major counters. The Nifty 50 ended the session with a 0.18% drop at 23,696, while the Sensex closed at 78,271, down 0.40% compared to Tuesday’s close.
The Nifty Smallcap 100 index rose by 1.85% to 17,108, while the Nifty Midcap 100 index ended the day with a gain of 0.68%, closing at 54,180.
Shares of state-owned firms and energy companies such as ONGC, IGL, BPCL, IOC, and HPCL have jumped between 2% and 3%. Global brokerage firm, Goldman Sachs upgraded its rating on HPCL and BPCL to ‘Buy’ and on IOC to ‘Neutral,’ citing an improved earnings outlook for the companies.
Macquarie upgraded its rating on ONGC to ‘Outperform’ and raised the target price to ₹310 from the earlier price target of ₹250 per share. CLSA maintains its ‘Outperform’ call with a target price of ₹220 per share.
The brokerage noted that the company has not increased CNG prices in Delhi for over three months, while its peers MGL and Gujarat Gas have already raised CNG prices by 2-4%. After the Delhi elections today, a window opens up for IGL to raise CNG prices by 4%, it stated.
Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market traded within a narrow range in negative terrain. Investors are weighing the improved domestic outlook, buoyed by a favorable budget, against lingering global uncertainties stemming from the tariff war.
“While declining U.S. bond yields and lower crude oil prices have supported market sentiment, the rupee’s depreciation could offset these gains. Rate-sensitive sectors are attracting attention ahead of a potential RBI rate cut. Meanwhile, large-cap stocks are well-positioned, benefiting from moderation in valuations,” he added.
Technical Outlook
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty remained mostly sideways during the session before closing slightly lower. On the lower end, the fall was limited to around 23,700, while the upside was capped at approximately 23,800. However, in the short term, the trend continues to favor the bulls as the index remains above the critical moving average, supporting a bullish outlook. On the higher end, the index may continue to move towards 24,050 in the near term. Meanwhile, support is placed at 23,500, where maximum put writing is visible.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
