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  1. Market Wrap, February 5: SENSEX, NIFTY50 end in the red; mid and small stocks outperform; MTNL zooms 18%

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Market Wrap, February 5: SENSEX, NIFTY50 end in the red; mid and small stocks outperform; MTNL zooms 18%

Upstox

3 min read | Updated on February 05, 2025, 16:33 IST

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SUMMARY

The SENSEX and NIFTY50 ended lower as investors grew cautious ahead of the RBI's monetary policy decision, with concerns over trade wars and the rupee's record low.

Adani Ports, IndusInd Bank, Tata Motors, and HDFC Bank were among the major gainers. | Image: Shutterstock.

Adani Ports, IndusInd Bank, Tata Motors, and HDFC Bank were among the major gainers. | Image: Shutterstock.

The equity benchmark indices SENSEX and NIFTY50 ended lower in a volatile session on Wednesday, February 5, as investors turned cautious ahead of the RBI's monetary policy decision later this week and trade war concerns.

The 30-share BSE Sensex declined 312.53 points, or 0.40%, to settle at 78,271.28. During the day, it went lower by 367.56 points, or 0.46%, to 78,216.25.

The Nifty50 dropped 42.95 points, or 0.18%, to 23,696.30.

Profit-taking after Tuesday’s rally and the rupee plunging to record low levels also hit market sentiment. SENSEX had jumped 1,397.07 points, and NIFTY soared 378.20 points to settle at one-month highs on Tuesday following firm global trends.

From the 30-share Sensex pack, Asian Paints on Wednesday dropped over 3% after the firm reported a 23.5% decline in consolidated net profit at ₹1,128.43 crore for the third quarter ended December 2024 amid downtrading due to muted demand and a weak festive season.

Titan, Nestle, Hindustan Unilever, State Bank of India, Larsen & Toubro, ITC, Zomato, and Bajaj Finserv were also among the laggards.

Adani Ports, IndusInd Bank, Tata Motors, and HDFC Bank were among the major gainers.

Besides, shares of state-run Mahanagar Telephone Nigam Ltd. (MTNL) surged as much as 20% in intraday trade on reports of the government finalising asset monetisation plan. Reports indicated that the government is likely to monetise the state-owned telco’s non-core assets soon to clear existing debts.

The stock ended at ₹56.06 on the BSE, up 17.67%.

Broader Market

The BSE MidCap index ended at 43,374.16, up 298.94 points, or 0.69%, while the BSE SmallCap index settled at 50,507.67, up 706.60 points, or 1.42%.

The Reserve Bank of India (RBI) on Wednesday started deliberations on the monetary policy, and the decision will be announced on Friday (February 7).

India's services sector activity expanded at the slowest pace in over two years in January amid softer increases in sales and output, a monthly survey said on Wednesday.

The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 59.3 in December to 56.5 in January—its lowest level since November.

In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

In Asian markets, Seoul and Tokyo settled in the positive territory while Hong Kong ended lower.

European markets were quoting in the negative zone. US markets ended higher on Tuesday.

Foreign Institutional Investors (FIIs) turned buyers on Tuesday after unabated selling for the past many days. They bought equities worth ₹809.23 crore, according to exchange data.

Global oil benchmark Brent crude declined 0.84% to $75.56 a barrel.

(With inputs from PTI)
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Upstox
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