Markets snap two-day winning streak; NIFTY50 ends below 25,700 and SENSEX drops 500 points

Indian benchmark indices closed in the red on Thursday ahead of the crucial RBI monetary policy outcome on Friday. The markets traded lower in the late afternoon session as traders opted to cash in on recent gains. Besides, metal stock came under pressure, with BSE Metal declining 1.02%, amid a fall in global metal prices and a stronger US dollar. Further, investors sought more clarity on India-US bilateral trade deal.

Meanwhile, India and the Gulf Cooperation Council (GCC), a group of six Middle Eastern countries, are likely to sign terms of reference on February 05, 2026, to start talks on a free trade agreement (FTA). The terms of reference (ToR) outline the scope and modalities of a proposed trade pact.

IT stocks faced selling pressure for a asecond straight session as the anxiety on disruptions in the existing software services business model continued to worry investors. The NIFTY IT index extended the fall by 0.5% on Thursday, dragged by Infosys (-1.2%), TCS (-0.2%), and HCL Tech (-0.7%).

Market participants took note of Commerce and Industry Minister Piyush Goyal’s statement that India and the US are expected to finalise and sign a joint statement on the first tranche of the bilateral trade agreement in 4-5 days.

The NIFTY50 ended at 25642.80, down by 133.20 points or 0.52% after trading in a range of 25579.50 and 25757.65.

The BSE Sensex ended at 83313.93, down by 503.76 points or 0.60% after trading in a range of 83151.62 and 83784.17.

The top gainers in NIFTY50 were Trent up by 2.96%, Max Healthcare up by 1.50%, Tata Steel up by 1.21%, JSW Steel up by 0.94% and ONGC up by 0.84%. On the flip side, Hindalco down by 3.06%, Eternal down by 2.48%, Bharti Airtel down by 1.65%, Bharat Electronics down by 1.43% and SBI Life Insurance down by 1.17% were the top losers.

Asian markets closed mostly lower on Thursday tracking Wall Street’s mixed performance overnight. Kospi dropped from all-time record highs as South Korea's semiconductor heavyweights like Samsung and SK Hynix declined following tech jitters on Wall Street