Pre-Market Report: Cautious Start Expected Amid Tech Turbulence and RBI Policy Focus
Published: 2026-02-05 08:00 IST | Category: Markets | Author: Abhi
Global Market Cues
Overnight, Wall Street presented a divided front as investors rotated out of high-growth technology names into defensive sectors. The tech-heavy Nasdaq Composite tumbled 1.51% to close at 22,904.58, while the S&P 500 shed 0.51% to finish at 6,882.72. In contrast, the Dow Jones Industrial Average managed a gain of 0.53%, closing at 49,501.30, supported by value and healthcare stocks like Amgen.
- Tech Rout: Advanced Micro Devices (AMD) plunged over 17% following a disappointing revenue forecast, dragging down the semiconductor and broader software sectors.
- AI Disruption: Concerns regarding AI-based automation tools, specifically following recent productivity tool launches by startups like Anthropic, continued to weigh on software and outsourcing-linked stocks.
- Commodities: Brent crude prices remained soft, trading near $68.71 per barrel, providing some relief to oil-importing nations like India. Gold prices hovered around $4,953 per ounce internationally.
- Asian Markets: Early trade in Asia was mixed; Japan’s Nikkei 225 saw marginal gains, while South Korea’s Kospi dropped over 1.3% tracking the U.S. tech weakness.
GIFT Nifty and Domestic Cues
The GIFT Nifty is currently trading around the 25,865.50 level, suggesting a steady to positive start for the Nifty 50 compared to its previous close of 25,776. However, Indian IT ADRs like Infosys and Wipro saw sharp declines of up to 5.5% in the U.S. session, which is expected to exert pressure on the domestic IT index today.
- Institutional Activity: On Wednesday, Foreign Institutional Investors (FIIs) were net buyers to the tune of ₹5,236.28 crore, while Domestic Institutional Investors (DIIs) also remained net buyers with ₹1,014.24 crore.
- RBI Policy: The Reserve Bank of India’s (RBI) three-day monetary policy meeting is in its second day. While a rate hike is not widely expected, investors are closely watching for the Governor’s commentary on inflation and the impact of the recent India-US trade deal.
- Trade Deal Optimism: Goldman Sachs recently upgraded India’s real GDP growth forecast for CY26 to 6.9%, citing the positive impact of reduced reciprocal tariffs between India and the USA.
Key Stocks in Focus
Several heavyweights and mid-cap stocks are expected to see high volatility today based on earnings and corporate developments.
- IT Majors (TCS, Infosys, Wipro): Under pressure following the 1.5% drop in the Nasdaq and a steep sell-off in Indian IT ADRs.
- Tata Power & Trent: In focus as investors react to their quarterly earnings reports and future growth guidance.
- Mahindra & Mahindra: Positive sentiment expected after the company secured a significant export order for 2026.
- Marico: The company is in the news for its recent acquisition of a stake in a prominent wellness brand.
- Apollo Tyres & Cummins India: To be watched following their latest financial results.
Key Events to Watch Today
- RBI MPC Meeting: Day 2 of the rate-setting panel's deliberations; the final decision is due tomorrow.
- U.S. Economic Data: Release of Initial Jobless Claims and the JOLTs Job Openings report later today will provide cues on the U.S. labor market.
- Plastindia 2026: One of the world’s largest plastics exhibitions begins today in New Delhi, which may bring focus to the chemicals and petrochemicals sectors.
TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update
Tags: Pre-Market Stock Market Nifty Sensex Market Update