Markets Today: Services PMI; MPC; Trump-China news; Swiggy, Titan Q3; IPO

Stock Markets Today, February 5, 2025: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, India Service PMI, strong global market trends, China's response to Trump tariffs, and ongoing Q3 earnings are expected to influence the benchmark indices, Sensex and Nifty, today.

 

At 6:33 AM, GIFT Nifty futures were up 71 points at 23,856, signaling a higher start for Indian markets.

In the previous session, the Sensex closed at 78,583.81, up 1,397.07 points (1.81 per cent), while the Nifty ended at 23,739.25, up 387.20 points (1.62 per cent), after foreign institutional investors (FIIs) purchased shares worth Rs 809.23 crore on February 4. 

 

Domestic institutional investors (DIIs), meanwhile, offloaded shares worth Rs 430.70 crore. 

  Also Read: US-China trade war may open new opportunities for Indian exporters

 

Domestic cues

 

The RBI's MPC will begin its last monetary policy meeting for the ongoing financial year today, February 5. The markets are discounting the Committee, headed by newly appointed Governor Sanjay Malhotra, to deliver its first repo rate cut in nearly five years when it concludes its meeting on Friday, February 7, 2025.

 

 

Market participants are awaiting earnings reports from companies like Swiggy, Zydus Life, and Cummins among others. The market will also react to results from Titan, Tata Power, Whirlpool, and Religare Enterprises, among several others.

 

Also Read: ITC Hotels removed from Sensex; Dr Agarwal slips on stock market debut

 

  Sebi and other market news

  The Securities and Exchange Board of India (Sebi) has introduced new regulations requiring algorithmic trading providers to be empaneled with stock exchanges and establishing rules for using application programming interfaces (APIs). These changes aim to close regulatory gaps and improve investor protection.

 

Although benchmark indices have dropped over 10 per cent from their highs, two-thirds of sectoral indices are still trading at a premium compared to their 10-year average price-to-earnings (P/E) multiples, according to Motilal Oswal's report.

 

Also Read: PCE facility success depends on investor appetite, market reforms 

 

Additionally, the gap in ownership between foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) has narrowed to a record low of 33 basis points (bps) by December 2024, the smallest since 2009.

  Investors also await Services PMI final figures for January.  Notably, over 1.5 crore voters in Delhi will cast their votes today, to elect the next government. The ruling Aam Aadmi Party (AAP) is aiming for a third consecutive term, while the Bharatiya Janata Party (BJP) and Congress are hoping for a comeback in the national capital.

 

IPO market 

  Amwill Healthcare IPO (SME) and Ken Enterprises IPO (SME) will open for subscription. Chamunda Electricals IPO (SME) will enter Day 2.

 

Commodity market 

 

Gold prices hit an all-time high on Tuesday as investors flocked to the safe-haven asset following China's retaliation with tariffs on the US Spot gold increased 1.1 per cent to $2,843.06 per ounce. US gold futures rose 0.6 per cent to $2,873.70.

 

Meanwhile, US oil prices rebounded from earlier losses after a US official confirmed President Trump’s plan to intensify the ‘maximum pressure’ campaign on Iran, aiming to reduce Iranian oil exports to zero. US WTI crude dropped 0.63 per cent to $72.70. Global Brent crude futures edged up 0.32 per cent, to $76.20.

 

Global cues

 

Global markets showed positive momentum as Asia-Pacific markets rose on Wednesday, following an uptick in US stocks. 

 

Wall Street overcame concerns surrounding Trump's tariffs and China's retaliation. 

 

China resumes trading after the Lunar New Year holidays today. Investors will eye Chinese markets especially after the government imposed tariffs on US imports in response to US duties on Chinese exports.

 

Later in the day, China is expected to release its Caixin Services PMI figures for January, offering insights into the country's services activity. 

 

Last checked, Nikkei was up 0.25 per cent, while the Topix index rose 0.50 per cent. Kospi jumped 1.07 percent. ASX 200 was up 0.76 per cent.

 

Meanwhile, in the US, all three major indexes rose overnight amid global trade developments. Nasdaq rose 1.35 per cent, while the S&P 500 climbed 0.72 per cent. Dow Jones settled 0.30 per cent higher.

 

Investors now await January Services PMI final for UK and US, coupled with US trade data, which is expected later in the day.

 

Here's how analysts are assessing today's (February 5) trading session:

 

Shrikant Chouhan, head of equity research at Kotak Securities

 

For traders now, 23,600/78100 and 23,500/77800 would be the key support zones, while 23,800/78700-23,850/78900 could act as key resistance areas for the bulls.

 

Rupak De, senior technical analyst at LKP Securities

  In the short-term, the index may move toward 24,050 and higher, while support levels are placed at 23,500 and 23,250.