The benchmark BSE Sensex lost 213.12 points or 0.27% to close at 78,058.16, while the broader Nifty 50 index closed at 23,603.35, lower by 92.95 points or 0.39%.
The market capitalization of all listed companies on the BSE decreased by Rs 3.06 lakh crore to Rs 424.97 lakh crore.
Sector Watch
Trent shares closed 8.4% lower even as the fashion and lifestyle major reported a 33% growth in its consolidated net profit for the December quarter, reaching Rs 497 crore, compared to Rs 374 crore in the same period last year. Trent was the biggest loser in terms of percentage on the Nifty 50 benchmark.
Rate-sensitive financial, auto and consumer stocks fell in today’s trading session as caution prevailed a day ahead of the Reserve Bank of India’s rate decision. Nifty Auto closed 0.8% lower while the Nifty PSU Bank index closed 0.6% lower.
Consumer stocks continued their downward trend, with the Nifty FMCG index falling 0.8% and the Nifty Consumer Durables index dropping 1.9%, wiping out the gains seen on February 1 during the post-Budget rally in consumer stocks.Among individual stocks, food delivery and quick commerce platform Swiggy tumbled about 7% to a record low after reporting a wider loss in the December quarter.The Reserve Bank of India (RBI) is widely expected to cut interest rates on Friday for the first time in nearly five years during Governor Sanjay Malhotra’s first monetary policy review.
Market participants are evaluating the potential for a rate reduction nearly a week after the federal budget, where the government cut personal tax rates to stimulate consumption.
Expert Take
The benchmark indices experienced a moderate decline as investors awaited the RBI’s decision on a potential rate cut amidst the ongoing trade war, said Vinod Nair, Head of Research at Geojit Financial Services, adding that 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,” Nair said.
Global Markets
Global stocks inched higher on Thursday, staging a modest relief rally as worries over an escalating trade war between the U.S. and its key trading partners eased. Meanwhile, the U.S. Treasury yields softened as investors reassessed the outlook for interest rates.
Despite ongoing uncertainties under U.S. President Donald Trump’s administration, markets took solace in the fact that conditions were not as severe as feared, particularly regarding the tit-for-tat tariff measures. This provided a boost to global equities while keeping the dollar in check, offering some relief to its battered counterparts from earlier in the week.
On Thursday, the People’s Bank of China set a stronger-than-expected yuan midpoint fixing. However, the currency still weakened after China appealed to the World Trade Organization to challenge the new tariffs imposed by the Trump administration.
China’s CSI300 blue-chip index surged over 1% as investors continued to pile into domestic AI firms following a breakthrough by Chinese start-up DeepSeek. Meanwhile, the Shanghai Composite Index climbed 1.16%.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.44%, while Japan’s Nikkei advanced 0.6%.
Currency Watch
The Indian rupee fell to a record low on Thursday, pressured by weakness in Asian peers and a prevailing bearish outlook ahead of a crucial monetary policy decision. Uncertainty over U.S. trade tariffs and persistent portfolio outflows have weighed on the currency over the past two months, making it Asia’s worst performer in 2025.
The rupee touched an all-time low of 87.5825 during the session before settling at 87.5775, down 0.1% on the day and over 2% year-to-date.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.40% higher at 108.00.
Crude Impact
Oil prices inched higher on Thursday after Saudi Arabia’s state oil company significantly raised its March crude prices. However, the gains did little to offset the previous day’s decline in benchmark Brent crude.
Brent crude futures rose 28 cents, or 0.4%, to $74.89 a barrel by 0952 GMT.
FII/DII Tracker
The Foreign institutional investors (FIIs) turned net sellers on February 5, as they offloaded equities worth Rs 1,682.83 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 996.28 crore.
