GIFT Nifty hints at green start for equities; Takaichi secures historic mandate in Japan

GIFT Nifty:

GIFT Nifty February 2026 futures were up 32.50 points, suggesting a positive start for the Nifty 50 today.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 1,950.77 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,265.06 crore in the Indian equity market on 06 February 2026, provisional data showed.

The FIIs bought shares worth Rs 2,645.53 so far in February (till 06 February 2026). This follows their cash sales of Rs 38740.12 in January 2026 and Rs 34,349.62 crore in December.

Global Markets:

Asian markets trended higher on Monday, led by a surge in Japanese stocks following Prime Minister Sanae Takaichis historic landslide election victory.

 

The ruling Liberal Democratic Party captured a two-thirds supermajority in the 465-seat lower house, public broadcaster NHK reported.

A decisive win for Takaichi could be the best outcome for markets over the medium term, as strategic investments and tax reform bolster equities, said Sree Kochugovindan, media report said.

Japanese stocks have hit several highs over the past few months, driven by the so-called 'Takaichi trade' as markets expect the prime ministers economic policies seen as growth-focused continuation of Abenomics to boost equities, while weakening the yen as she pushes for a looser monetary policy and higher government spending.

U.S. President Donald Trump congratulated Takaichi on her victory in a TruthSocial post.

Last Friday in the U.S., stocks surged as tech names recovered following several days of heavy selling in the sector and bitcoin rebounded following a rout that took the popular cryptocurrency down more than 50% from its high in October last year.

The Dow Jones Industrial Average advanced 1,206.95 points, or 2.47%, closing at 50,115.67. Friday marked the first time the Dow exceeded the 50,000 level. The S&P 500 jumped 1.97% and ended at 6,932.30, while the Nasdaq Composite advanced 2.18% to 23,031.21. With those moves, the S&P 500 climbed back into the green for 2026.

Even with Fridays rise, the S&P 500 posted a 0.1% decline for the week, while the Nasdaq fell 1.8% on the week. The 30-stock Dow rose 2.5% week to date, benefiting from some rotation into some economically cyclical stocks even as the overall market was weighed down by tech selling.

Domestic Market:

The key equity benchmarks closed deep in the red on Thursday, breaking a three-day winning streak as investors locked in profits at stretched valuations. The rally, fuelled by optimism around the India-US trade deal, ran into selling as caution crept in ahead of the Reserve Bank of Indias monetary policy decision due on Friday.

Weakness was not limited to frontline stocks, with the broader market also sliding under pressure. The Nifty 50 slipped below the 25,650 mark, dragged down by sharp losses in metal, consumer durables and auto stocks.

The S&P BSE Sensex slumped 503.76 points or 0.60% to 83,313.93. The Nifty 50 index fell 133.20 points or 0.52% to 25,642.80. Over the past three consecutive trading sessions, the Sensex advanced 3.20%, while the Nifty gained 3.29%.

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