More Stories

Informist, Monday, Feb. 2, 2026

By Gopika Balasubramanium

MUMBAI – The market bias will continue to be negative as long as the Nifty 50 stays below 25300 points, with investors expected to sell stocks on Tuesday in view of expiry of weekly options contracts. Indices are seen volatile through the week ahead of the Reserve Bank of India's monetary policy outcome Friday. Underwhelming December quarter earnings have also affected market sentiment. 

There are also concerns that the proposed hike in securities transaction tax in the futures and options segment will bring down volumes in the derivatives segment. Some analysts see this also affecting the cash market volumes. But the impact from a price perspective may be marginal due to continuous inflows from mutual funds and retail investors. The strengthening of the rupee Monday following the intervention of the RBI is seen as a step toward stable currency, analysts said.

"The market witnessed a smart recovery following yesterday's volatile session due to the impact of the STT hike on F&O and the government's higher borrowing plan for FY27," Vinod Nair, head of research at Geojit Investments, said. "At the same time, the Budget's policy continuity with a clear emphasis on growth and fiscal prudence has helped reinforce confidence in the medium to long term earnings outlook," he added. "A sharp decline in global crude oil prices has also offered some relief, reflecting signs of easing geopolitical tensions between the US and Iran. Nevertheless, in the near term, market mood is expected to stay cautious due to below estimate Q3 (Oct-Dec) earnings and ongoing global tensions."

On Monday, the Nifty 50 closed at 25088.40, up 262.95 points or 1.1%, recovering from the 2% fall on Sunday. The 50-stock index regained the 25000 mark as investors covered their short positions, technical analysts said. On Tuesday, they expect the Nifty 50 to find support at 24900-24800 points and face resistance at 25200-25300 points.

Investor focus will also be on government bond yields following the Centre's decision to borrow a higher-than-expected INR 17.60 trillion from the market. Reacting to the announcement, gilt prices fell sharply Monday. The yield on the 10-year benchmark gilt closed at 6.77%, the highest level since Jan. 15, 2025. The yield is at a level before the RBI delivered the 125-basis-point cut in 2025. Currently, the repo rate is at 5.25%.

On the earnings front, Nifty 50 companies Adani Ports and Special Economic Zone, Bajaj Finance, and Adani Enterprises will announce their December quarter earnings Tuesday. Pidilite Industries, Varun Beverages, Solar Industries India, Aditya Birla Capital, Mankind Pharma, and NMDC will also detail their earnings. Investors will react to earnings of Bajaj Housing Finance which declared its earnings post market hours on Monday. The company's net profit jumped up 21% on year on the back of a significant rise in assets under management. The stock closed flat at INR 89.70 ahead of the results. City Union Bank, Utkarsh Small Finance Bank, and PB Fintech will react to their earnings announcements.  End

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.