The BSE Sensex traded over 200 pts lower to drop below 83,100, while the Nifty 50 declined over 80 points, slipping below 25,600 mark.
On the 30-stock Sensex, Infosys, TCS, Tech Mahindra, NTPC, BEL, and HCL Tech were the main laggards, falling up 1-2%. On the gainers side, Bajaj Finance, Kotak Mahindra Bank, Bharti Airtel, ICICI Bank, Bajaj Finserv, and Power Grid Cop rose up to 1.5%.
The Nifty Smallcap 100 index tanked 1%, while the Midcap 100 was down 0.35%.
Expert Views
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, market participants noted that global markets are currently gripped by a risk-off sentiment, with bitcoin slipping below the $64,000 mark and silver correcting sharply to around $71 from recent highs near $121. Even gold, traditionally viewed as a safe-haven asset, has shown signs of weakness despite elevated geopolitical uncertainty.
The tech-heavy Nasdaq has also declined about 6% from its peak, reflecting sustained pressure on technology and AI-related stocks. While a continued unwinding of the AI trade could be supportive for India over the medium term, further weakness in global tech stocks would be needed, making trends in AI names a key monitorable.
They also pointed out that foreign institutional investors (FIIs) turning sellers again and building higher short positions in derivatives suggest near-term market weakness. As for domestic triggers, a rate cut from the RBI’s MPC is seen as unlikely, with expectations of a status quo on rates and stance. However, a potentially dovish tone in the policy and an upward revision to FY27 growth projections could help improve market sentiment.FII/DII Tracker
Foreign investors snapped their buying streak of two days, selling Rs 2,150 crore on February 5. On the flipside, DIIs bought nearly Rs 1,130 crore, official data from the NSE showed.
FIIs staged a strong comeback in Indian equities on Tuesday, snapping a prolonged selling streak after the India–US trade deal helped remove a major overhang on markets. Foreign institutional investors (FIIs) were net buyers to the tune of Rs 5,236 crore, as per provisional NSE data, marking the highest single-day inflow since October 28.
Global Markets
U.S. equities declined for a second straight session on Thursday as investors adopted a risk-off stance, unwinding popular trades in technology stocks and bitcoin. The Dow Jones Industrial Average fell 592.58 points, or 1.20%, to close at 48,908.72. The S&P 500 dropped 1.23% to 6,798.40, slipping into negative territory for the year, while the Nasdaq Composite declined 1.59% to settle at 22,540.59. At session lows, the Dow was down nearly 700 points, or about 1.4%, while the S&P 500 and Nasdaq had fallen as much as 1.5% and 1.9%, respectively.
Asian markets followed Wall Street lower on Friday. South Korea’s Kospi plunged as much as 5%, leading regional losses after the tech-led rout in the U.S. Japan’s Nikkei 225 fell 0.57%, marking its third straight day of declines, while the broader Topix index was marginally lower.
Elsewhere, Hong Kong’s Hang Seng Index dropped about 2% at the open and mainland China’s CSI 300 edged lower. Australia’s S&P/ASX 200 also weakened, falling 1.84% in early trade.
Crude Impact
U.S. crude futures extended their losses on Friday and were on track for their first weekly decline in weeks, as concerns over potential supply disruptions in the Middle East eased. Investor focus has shifted to the outcome of U.S.–Iran nuclear talks scheduled to take place in Oman later in the day.
Brent crude futures fell 50 cents, or 0.74%, to $67.05 a barrel as of 0102 GMT, after settling 2.75% lower in the previous session. U.S. West Texas Intermediate (WTI) crude declined 52 cents, or 0.82%, to $62.77 a barrel, following a 2.84% drop on Thursday.
Rupee vs Dollar
The rupee opened stronger at 90.29 against the US dollar, compared with Thursday’s closing level of 90.36.
With inputs from agencies
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)