HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Key gauges add losses; RBI revises FY26 inflation forecast to 2.1%
Feb-06-2026

Indian equity benchmarks added some losses in morning deals, dragged down by IT heavyweights amid weak trend in the US equities. Traders remained cautious as the Reserve Bank of India’s Monetary Policy Committee (MPC) has revised its inflation outlook for FY2025-26, with the Consumer Price Index (CPI) projected at 2.1 per cent, from 2 percent earlier. It has raised its inflation forecast for Q1 and Q2 of FY27 to 4% and 4.2%, indicating slower disinflation than previously expected. However, it has kept the benchmark repo rate unchanged at 5.25 per cent and maintained policy stance at 'neutral', citing a resilient economy amid evolving macroeconomic conditions. Traders overlooked External Affairs Minister S Jaishankar’s statement that the historic India-US trade agreement is in the final stages of detailing that will be completed very soon. On the global front, Asian markets were trading mostly in red as a tech rout that battered Wall Street for the third day in a row showed no sign of letting up amid growing unease about the hundreds of billions splashed out on artificial intelligence. 

The BSE Sensex is currently trading at 82987.30, down by 326.63 points or 0.39% after trading in a range of 82945.56 and 83331.35. There were 8 stocks advancing against 22 stocks declining on the index.

The top losing sectoral indices on the BSE were IT down by 1.86%, Healthcare down by 1.31%, Realty down by 1.18%, Metal down by 1.18% and TECK down by 1.14%, while there were no gaining sectoral indices on the BSE. 

The top gainers on the Sensex were Bajaj Finance up by 0.90%, Kotak Mahindra Bank up by 0.81%, Power Grid Corporation up by 0.78%, ITC up by 0.53% and ICICI Bank up by 0.33%. On the flip side, TCS down by 2.14%, Trent down by 1.90%, Tech Mahindra down by 1.89%, Eternal down by 1.64% and Asian Paints down by 1.48% were the top losers.

Meanwhile, India and Gulf Cooperation Council (GCC) have signed the terms of reference on February 05, 2025, officially beginning talks for a free trade agreement (FTA). The terms of reference (ToR) outline the scope and modalities of a proposed trade pact. GCC is a union of six countries in the Gulf region - Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.

Commerce and Industry Minister Piyush Goyal has said that the agreement will help boost bilateral trade and investments between the two. He stated ‘The two trading partners have been trading amongst each other for over 5,000 years.’ He mentioned around 10 million Indians live and work in the GCC region.

Moreover, he stated ‘It is most appropriate that we now enter into a much stronger and robust trading arrangement which will enable a greater free flow of goods, services, bring predictability and stability to policy, help encourage a greater degree of investments.’ Further, he said that the agreement will also enhance food and energy security of the GCC nations, as well as India. While India is a leading global producer of food grains, GCC nations are oil and gas exporters.

The CNX Nifty is currently trading at 25522.45, down by 120.35 points or 0.47% after trading in a range of 25496.10 and 25630.80. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.55%, Bajaj Finance up by 0.91%, Power Grid Corporation up by 0.74%, Kotak Mahindra Bank up by 0.73% and Bharti Airtel up by 0.51%. On the flip side, Max Healthcare Inst down by 2.71%, TCS down by 2.23%, Tech Mahindra down by 2.07%, Trent down by 1.78% and Nestle down by 1.61% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 216.51 points or 0.68% to 31,584.76, Jakarta Composite plunged 229.46 points or 2.91% to 7,874.42, KOSPI dropped 149.72 points or 2.9% to 5,013.85, Hang Seng declined 372.24 points or 1.38% to 26,513.00 and Straits Times fell 44.28 points or 0.89% to 4,931.59.

On the flip side, Nikkei 225 surged 214.96 points or 0.4% to 54,033.00 and Shanghai Composite strengthened 6.89 points or 0.17% to 4,082.81.
  RELATED NEWS >>
Most Viewed >>
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.