Share Market Opens Cautiously in Red Ahead of RBI MPC Decision, Weak Global Cues Drag Sentiment
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Mumbai (Maharashtra), February 6 :
Indian stock markets opened on a cautious note and slipped into the red on Friday as investors stayed on the sidelines ahead of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) outcome, scheduled to be announced at 10 AM.
At the opening bell, the Nifty 50 declined by 37 points (0.14%) to 25,605.80, while the BSE Sensex opened lower by 64.61 points (0.08%) at 83,249.32.
Investors Await RBI MPC Outcome
Market participants remained cautious as the RBI’s policy decision is expected later in the day. Experts believe the central bank may keep interest rates unchanged.
Banking and market expert Ajay Bagga told ANI that Indian markets may remain weak due to global pressure, though India could attract funds in the long term as global investors look for uncorrelated markets.
He said the RBI is likely to hold rates steady and maintain a neutral policy stance. He also noted that India’s GDP and inflation base year is changing this month, and the new data series is expected next week.
Global Weakness Hits Market Mood
Investor sentiment stayed weak due to continued selling in global technology stocks. The ongoing Big Tech sell-off and concerns over heavy spending in the AI sector have unsettled global markets.
Asian markets also opened weak following negative cues from the US markets overnight. South Korea’s Kospi index fell sharply by around 5%, reflecting broader risk-off sentiment.
IT Stocks Under Pressure
The Nifty IT index witnessed the highest decline, falling over 1% in early trade. Media stocks also traded lower, while the Nifty Pharma index declined by around 0.8%.
Market analysts also pointed out that IT services firms are facing fresh pressure due to AI-based coding tools from players such as Anthropic, which could impact output and profit margins in the long run.
Broader Market Weak
In the broader market:
- Nifty 100 fell 0.10%
- Nifty Midcap slipped 0.34%
- Nifty Smallcap dropped sharply by 0.9%
Sectoral Performance
On the NSE, FMCG, Private Bank, and Realty stocks opened in the green with marginal gains. However, most other sectoral indices remained under pressure.
Gold and Silver Prices Decline
In the commodities market, gold prices continued their downward trend on Friday. 24-carat gold slipped around 1% to Rs 150,890 per 10 grams. Silver prices saw steeper losses, falling by 3.4% to Rs 235,485 per kilogram.
Markets Remain Subdued
Overall, Indian markets remained subdued as investors tracked weak global developments and awaited clarity from the RBI MPC decision.
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