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Indices continue to witness weakness in late morning deals
Feb-05-2026

Domestic equity indices continued to witness weakness and were trading lower with cut of around half percent in late morning deals as investors booked profit at elevated levels. Weak cues from other Asian markets weighed on the domestic sentiments. Traders remained on sidelines ahead of RBI interest rate announcement on Friday. Meanwhile, State Bank of India in its latest report has said that the Monetary Policy Committee (MPC) of the Reserve Bank of India is likely to maintain a status quo on the repo rate in its policy announcement scheduled for Friday, amid continued global economic uncertainty, pressure on government bond yields and volatility in the domestic currency. Traders overlooked report that the U.S. and Iran agreed to hold talks in Oman on Friday, easing concerns of a potential military conflict between them that could disrupt supply from the key Middle East-producing region.

On the global front, Asian markets were trading in red flowing muted cues from the US markets overnight. Back home, all the sectoral indices on the BSE were trading in red led by Metal, Consumer Durables, Capital Goods, Basic Materials and Realty. 

The BSE Sensex is currently trading at 83433.29, down by 384.40 points or 0.46% after trading in a range of 83309.17 and 83784.17. There were 6 stocks advancing against 24 stocks declining on the index.

The top losing sectoral indices on the BSE were Metal down by 1.83%, Consumer Durables down by 1.42%, Capital Goods down by 1.26%, Basic Materials down by 1.22% and Realty down by 1.13%, while there were no gainers.  

The top gainers on the Sensex were Trent up by 2.08%, SBI up by 0.60%, Hindustan Unilever up by 0.59%, Tata Steel up by 0.18% and NTPC up by 0.15%. On the flip side, Eternal down by 2.14%, Interglobe Aviation down by 1.97%, Asian Paints down by 1.88%, Bharat Electronics down by 1.58% and Axis Bank down by 1.48% were the top losers.

Meanwhile, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal has said that nearly 88 per cent of individual taxpayers have adopted the new income tax regime and the government is not considering a sunset clause for filing for the old tax regime. He said selecting a particular tax regime is the choice of the taxpayers, but the shift towards the new regime has been very good. He noted that insofar as presumptive tax cases, about 97 per cent of the taxpayers have moved to the new tax regime, while about 60% of corporate income is now being reported under the new tax regime. 

CBDT Chairman said ‘we believe, with the new minimum alternate tax (MAT) provisions coming in the FY27 Budget, it will also persuade people to move to the new tax regime'. MAT, meant only for companies, is calculated at the rate of 15 per cent of book profit and is chargeable only when it is more than the tax on income. He said the Budget has proposed treating MAT as the final tax and reducing its rate to 14% from 15% under the old regime. 

Talking on the proposed increase in Securities Transaction Tax (STT) on derivatives trading in budget, he hoped that this move will certainly dissuade retail investors from very aggressively taking up this exercise. He said only time would tell how much it would curb, but this is an attempt from the department and the government to actually at least address this issue and flag this issue. He also expressed confident about meeting the revised direct tax collection target, announced in recent Budget, of Rs 24.21 lakh crore for FY26.

The CNX Nifty is currently trading at 25645.00, down by 131.00 points or 0.51% after trading in a range of 25611.60 and 25757.65. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Trent up by 2.05%, JIO Financial up by 0.75%, Hindustan Unilever up by 0.61%, ONGC up by 0.58% and Max Healthcare Inst up by 0.55%. On the flip side, Hindalco down by 3.47%, Tata MotorsPassenger down by 2.45%, Eternal down by 2.19%, Interglobe Aviation down by 1.99% and Asian Paints down by 1.73% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 464.36 points or 0.86% to 53,829.00, Taiwan Weighted lost 488.54 points or 1.54% to 31,801.27, Jakarta Composite plunged 4.87 points or 0.06% to 8,141.85, Shanghai Composite weakened 17.35 points or 0.42% to 4,084.85, KOSPI dropped 206.48 points or 4% to 5,164.62, Hang Seng declined 203.32 points or 0.76% to 26,644.00 and Straits Times fell 13.34 points or 0.27% to 4,952.16.
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