GIFT Nifty suggests flat start for equities ahead of RBI's monetary policy announcement

GIFT Nifty:

GIFT Nifty February 2026 futures were down 18.50 points, suggesting a muted start for the Nifty 50 today.

The Reserve Bank's rate-setting panel had started its three-day meeting for the next bi-monthly monetary policy on Wednesday. The decision of RBI Governor Sanjay Malhotra-headed six-member Monetary Policy Committee (MPC) will be announced today.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 2,150.51 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,129.82 crore in the Indian equity market on 05 February 2026, provisional data showed.

The FIIs bought shares worth Rs 694.76 so far in February (till 05 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 market edged lower as South Korea led the losses on Friday, following the tech-driven sell off on Wall Street.

South Koreas market, which is heavily weighted in favor of companies in the chip and automotive industries, have seen sharp swings in the past week as sentiment over tech stocks sours.

Pharmaceutical stocks in Japan also slumped on Friday, after U.S. President Donald Trump unveiled his website offering discounted prescription medicines.

On the commodities front, spot silver prices continued their decline, falling 1.63% after crashing about 13% on Thursday.

Overnight in the U.S., the Dow Jones Industrial Average shed 1.20%, while the S&P 500 lost 1.23%, pushing it into negative territory for the year. The tech-heavy Nasdaq Composite posted the biggest decline, dropping 1.59%.

Tech giant Alphabet came under pressure after reporting fourth-quarter results and flagging a sharp rise in artificial intelligence spending, with capital expenditure totaling $185 billion for 2026.

Qualcomm slid more than 8% after posting a weaker forecast because of a global memory shortage.

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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