Pre-Market Report: Indian Markets Set for a Weak Start Amid Global Tech Rout; RBI Policy in Focus

Global Market Cues

The global sentiment remains fragile as Wall Street witnessed a sharp decline on Thursday, February 5, 2026. The tech-heavy Nasdaq Composite led the losses, tumbling 1.59%, while the S&P 500 and the Dow Jones Industrial Average dropped 1.23% and 1.20%, respectively. This sell-off was triggered by concerns over high valuations in the artificial intelligence sector and mixed earnings from major software giants.

Asian markets are mirroring this caution on Friday morning. While Japan’s Nikkei 225 bucked the trend with a slight gain of 0.81%, Hong Kong’s Hang Seng index fell over 1.2%, and South Korea’s Kospi plunged nearly 2%. In the commodity space, gold prices have stabilized near $4,950 per ounce, while Brent crude climbed toward $70 per barrel amid geopolitical tensions.

GIFT Nifty and Domestic Cues

GIFT Nifty is currently trading at a significant discount, hovering around the 25,600–25,635 level, indicating a potential gap-down opening of approximately 80–100 points for the Nifty 50. Domestic institutional investors (DIIs) provided some cushion in the previous session, but foreign institutional investors (FIIs) remain in a risk-off mode.

• FII/DII Activity: On February 5, FIIs were net sellers to the tune of ₹2,150.51 crore, while DIIs supported the market with a net purchase of ₹1,129.82 crore.
• RBI Monetary Policy: The market is bracing for the RBI's interest rate decision. While consensus expects the repo rate to remain unchanged at 5.25%, any change in stance or commentary on inflation and liquidity will be closely monitored.
• Currency: The Indian Rupee showed resilience in the previous session, closing at 90.34 against the U.S. Dollar.

Key Stocks in Focus

The following stocks are expected to see high volatility during today's session:

• IT Sector (TCS, Infosys, Tech Mahindra): These stocks will be under pressure following the 1.5% drop in the Nasdaq and continued selling in global tech firms.
• Tata Steel: The company is set to announce its Q3 FY26 results today, which will influence the metal pack.
• Banking Stocks (HDFC Bank, ICICI Bank, SBI): These will be highly sensitive to the RBI Governor’s speech and any updates on lending norms for REITs.
• Kalyan Jewellers & Bosch: Both companies are among the major names scheduled to report quarterly earnings today.
• ITC: The stock saw heavy buying in the previous session and remains a key focus for defensive investors.

Key Events to Watch Today

Investors should keep an eye on these critical triggers:

• RBI MPC Announcement: The policy decision and Governor Sanjay Malhotra’s press conference starting at 10:00 AM IST.
• Corporate Earnings: A heavy slate of Q3 results including Shree Cement, Sun TV, Whirlpool of India, and Lemon Tree Hotels.
• Global Macro Data: Continued monitoring of U.S. bond yields and the Dollar Index (DXY), which currently trades near 97.90.
• Geopolitical Developments: Any further updates regarding the U.S.-India trade deal and its impact on sectoral tariffs.

TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update

Tags: Pre-Market Stock Market Nifty Sensex Market Update