RBI Holds Rates; Equities Edges Higher Amid Selective Buying

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

iStock.com

By Dehuti Jani

February 6, 2026 at 11:44 AM IST

Indian equity benchmarks closed modestly higher on Friday after a largely range-bound session, as the Reserve Bank of India’s Monetary Policy Committee unanimously kept the repo rate unchanged at 5.25%, reinforcing its prolonged pause despite an improving growth outlook. The Sensex rose 0.32% to 83,580.40, while the Nifty50 gained 0.20% to 25,693.70. For the week (including Sunday’s Budget session), the Nifty advanced 1.47%, its best weekly performance since mid-November.

Market tone remained cautious and selective. Broader participation was limited, with IT, metals, pharma, media, and mid- and small-cap stocks under pressure, reflecting valuation concerns and global uncertainty. Defensive pockets and select financials offered support. The RBI raised its April-June 2026-27 GDP growth forecast to 6.9% and July-September 2026-27 to 7.0%, while revising 2025-26 inflation to 2.1% from 2.0%, reinforcing expectations of a prolonged rate pause. ITC, Kotak Mahindra Bank, HUL, Bharti Airtel, Bajaj Finance and Bajaj Finserv led gains, while TCS, Tech Mahindra, Adani Ports, Eternal and Asian Paints lagged. Among sectors, Nifty FMCG outperformed with a 2.2% rise, while Nifty IT was the top loser, down 1.47%; mid- and small-caps slipped marginally.

Top Movers of the Day

Jubilant Pharmova fell over 4% on Friday after the company reported a decline in net profit for October-December 2025-26, with the stock sliding to an intraday low of ₹931 on the NSE.

PhysicsWallah shares slipped around 4%, hitting ₹116.61, as investors reacted to its October-December 2025-26 earnings, which failed to enthuse the market.

Sai Life Sciences rallied over 8% after posting a strong 86% YoY jump in net profit for October-December 2025-26, extending gains for a second straight session amid heavy volumes.

Bharti Hexacom advanced more than 6% after reporting an 81.6% YoY rise in net profit to ₹4.74 billion in October-December 2025-26, supported by steady revenue growth.

ITC surged 5.6% to an intraday high of ₹327.70 on the NSE amid heavy volumes, putting it on track for its biggest single-day gain in nearly five years, driven by renewed buying interest.

SBI shares edged higher by about 1.5% after reports highlighted sustained loan growth momentum and expectations of stable asset quality post-Budget.

NTPC advanced close to 2% as investors focused on its renewable capacity pipeline and defensive appeal amid broader market volatility.

BEL (Bharat Electronics) moved up over 2%, extending recent gains on continued order inflows and strong earnings visibility from defence spending.

Asian Paints slipped around 1.5% as margin concerns and muted demand trends kept sentiment cautious ahead of further earnings clarity.

Futures & Options
Nifty February 2026 futures closed at 25,729.80, trading at a premium of 36.1 points to the Nifty’s cash close of 25,693.70, as the index added 50.90 points or 0.20% in the spot market. The India VIX eased 1.86% to 11.94, indicating a moderation in near-term volatility expectations. ITC, Kaynes Technology India and Tata Motors Passenger Vehicles were the most actively traded stock futures in the NSE F&O segment, while the February 2026 contracts are set to expire on February 24, 2026.

Bonds
Government bond yields edged higher on Friday after the Reserve Bank of India kept the repo rate unchanged, tempering expectations of near-term policy support. The benchmark 6.48% 2035 bond yield closed at 6.7363%, up from 6.6472% on Thursday, though it remains about 9 basis points higher over the past three sessions. Traders said the absence of fresh policy signals could see yields retest 6.75% in the near term. Since February 2025, the RBI has delivered 125 bps of rate cuts, but the 10-year yield remains close to last year’s levels as banks struggle to transmit easing amid slower deposit growth relative to credit demand.

Forex
The rupee ended weakened on Friday, ending 36 paise lower at 90.70 per dollar, pressured by heightened geopolitical uncertainty around US–Iran talks and a sharp rise in global crude oil prices. The currency initially firmed after the RBI maintained a status quo on policy rates, but sustained foreign portfolio outflows and importer dollar demand erased early gains, keeping the rupee under pressure into the close.

Crypto
Bitcoin plunged on Thursday to its lowest level since mid-October 2024, as thinning liquidity and a sharp sell-off in global technology stocks intensified pressure on risk assets. The world’s largest cryptocurrency was last down 12.4% at $63,539, extending a slide that has seen Bitcoin fall in seven of the past eight sessions and nearly 50% from its October 2025 peak near $126,000. The sell-off triggered heavy deleveraging, with about $770 million in crypto positions liquidated over the past 24 hours. Ethereum mirrored the weakness, tumbling 11.5% to $1,878, underscoring broad-based stress across digital assets.

US Stock Futures
US stock futures traded lower early Friday as Amazon’s post-earnings sell-off dragged on technology sentiment and extended caution after a bruising Wall Street session. S&P 500 futures slipped 0.4%, Nasdaq 100 futures fell 0.5%, while Dow Jones Industrial Average futures eased 0.2%, with investors bracing for further volatility in big-tech names.

US Treasury Notes
US Treasury yields edged slightly higher in early trade today, with the benchmark 10-year note hovering in the 4.19%–4.21% range, recovering modestly after slipping below 4.2% earlier this week. The recent dip was driven by softer labour market signals, including job openings falling to a five-year low and initial jobless claims rising to a two-month high.

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