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Bulls take charge over markets as US tariff relief, RBI status quo outweigh Budget worries
Feb-06-2026

Markets ended the passing week with significant gains of around 1.50% after Trump announced immediate reduction in reciprocal tariffs on Indian goods to 18%. Markets initially witnessed pressure as govt hiked STT on futures trading in Budget 2026-27. However, at the end of week, some support came after RBI revised upward GDP growth estimates and maintained status quo on policy rates.

Some of the major developments during the week are:

Govt reports 6.2% increase in GST collection for January: The government data has showed that gross Goods and Services Tax (GST) collections increased 6.2 per cent to over Rs 1.93 lakh crore in January 2026 as compared to Rs 1.82 lakh crore collected in January 2025, mainly on higher revenues from imports.

Indian manufacturing growth bounces back in January: Indian manufacturing growth bounced back in January, amid faster increase in new orders, output, employment and buying levels. The seasonally adjusted HSBC India PMI Index surged to 55.4 in January 2026 from 55.0 in December 2025.

January sees improvement in India’s services sector growth: January 2026 saw a notable improvement in India’s services sector growth, led by quicker expansions in new business intakes and output. The seasonally adjusted HSBC India Services PMI rose to 58.5 in January from 58.0 in December.

RBI holds repo rate at 5.25%; projects FY26 inflation at 2.1%: The MPC under the RBI at its final bi-monthly monetary policy for FY26 has unanimously decides to keep the policy repo rate under the LAF unchanged at 5.25%, citing positive inflation and growth outlook amid evolving economic conditions.

India-China trade reaches to $155 billion in 2025: Chinese ambassador to India -- Xu Feihong has said that the India-China bilateral trade reached a record high of $155 billion in 2025, registering a year-on-year (Y-o-Y) growth of over 12 percent.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex surged 1310.62 points or 1.59% to 83,580.40 during the week ended February 06, 2026. On the sectoral front, S&P BSE Power was up by 420.38 points or 6.58% to 6,812.85, S&P BSE Realty was up by 330.10 points or 5.41% to 6,432.90, S&P BSE Consumer Durables was up by 2,389.62 points or 4.32% to 57,719.93, S&P BSE Oil & Gas was up by 1,044.52 points or 3.72% to 29,158.70 and S&P BSE Consumer Discretionary Goods & Services was up by 327.45 points or 3.57% to 9,509.35 were the top gainers, while S&P BSE Information Technology was down by 2,263.70 points or 6.18% to 34,351.78 and S&P BSE TECK was down by 652.91 points or 3.58% to 17,594.47 was the only losers on the BSE.

NSE movement for the week

The Nifty surged 373.05 points or 1.47% to 25,693.70. On the National Stock Exchange (NSE), Nifty Mid Cap 100 increased 1070.70 points or 1.83% to 59,502.70, Nifty Next 50 gained 1218.55 points or 1.80% to 69,058.40, and Bank Nifty was up by 510.10 points or 0.86% to 60,120.55, while Nifty IT was down by 2425.10 points or 6.38% to 35,611.05.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net buyers in equity segment in the week, with gross purchases of Rs 98,318.90 crore and gross sales of Rs 88,877.23 crore, leading to a net inflow of Rs 9,441.67 crore. They also stood as net buyers in the debt segment with gross purchases of Rs 15,189.43 crore against gross sales of Rs 8,943.25 crore, resulting in a net inflow of Rs 6,246.18 crore. In hybrid segment, FIIs stood as net sellers, with gross purchases of Rs 100.34 crore and gross sales of Rs 204.62 crore, leading to a net outflow of Rs 104.28 crore. (Provisional)

Industry and Economy

In a major breakthrough for India’s exports, US President Donald Trump, after a phone conversation with Prime Minister Narendra Modi, has said that India and the US have agreed to a trade deal under which Washington will bring down reciprocal tariff on Indian goods to 18% from current 25%. Trump claimed India will move forward to reduce ‘tariffs and non-tariff barriers’ against the US to zero. There is no immediate reaction from India. Trump said Modi also committed to ‘buy American’ at a much higher level, in addition to over $500 billion dollars of US energy, technology, agricultural, coal, and many other products. Trump said Modi and he discussed ending the war between Russia and Ukraine. 

Outlook for the coming week

In passing week, markets ended with healthy gains amid positive macro-economic data. The seasonally adjusted HSBC India Services PMI Business Activity Index rose to a two-month high of 58.5 in January, from December's recent low of 58.0.

In the coming week, traders will be eyeing India's retail inflation data to be released on February 12. Wholesale Price Index (WPI) inflation and Foreign Exchange Reserves data are going to be out on February 13.

Traders continue to look forward for Q3 earnings report from many companies including Aurobindo Pharma, Pfizer, Apollo Hospitals Enterprise, Titan Company, Godrej Industries, Mahindra and Mahindra, NBCC etc.

On the global front, investors will be eyeing macro-economic reports from world’s largest economy, United States, starting with Consumer Inflation Expectations on February 09, followed by Retail Sales, Fed Bostic Speech, Redbook YoY on February 10, Non-Farm Payrolls, Unemployment Rate on February 11, Monthly Budget Statement, Initial Jobless Claims on February 12, Fed Balance Sheet, Inflation data and Baker Hughes Oil Rig Count on February 13.

Top Gainers 

  • Power Grid Corporation of India up by 12.38% was the top gainer on Nifty for the week - Power Grid revised upward its capital expenditure and capitalization guidance for FY26 to Rs 32,000 crore and Rs 22,000 crore, reflecting strong execution visibility, which put investors in a buying mood. Besides, its arm -- POWERGRID Khavda II-C Transmission commissioned 4.5GW Khavda transmission project.
  • Adani Enterprises up by 10.26% was another top gainer on Nifty for the week - Adani Enterprises caught investors’ attention after reporting many-fold jump in its consolidated net profit at Rs 5,627.02 crore for Q3FY26 as compared to Rs 57.83 crore for Q3FY25. Meanwhile, its arm -- Adani Defence & Aerospace has signed MoU with Leonardo to establish a fully integrated helicopter manufacturing ecosystem in India.

Top Losers 

  • Infosys down by 9.18% was the top loser of the week on Nifty - Infosys came under pressure along with other IT sector stocks amid fears of AI making traditional software and IT services obsolete after Anthropic launched AI tool which could automate legal work. Meanwhile, the IT industry body -- Nasscom dismissed these concerns and noted that rise of AI will redefine and augment the industry's role.
  • Tech Mahindra down by 8.40% was another top loser of the week on Nifty - Tech Mahindra came under pressure along with other IT stocks amid panic in the tech world over artificial intelligence firm Anthropic bringing new legal tools to its flagship chatbot Claude. Also, rupee strengthened against the dollar during the week weighed on IT stocks. A firm rupee adversely affects operating profit margins of IT firms.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 26,341.20 on February 3 and lowest level of 24,571.75 on February 1. On the last trading day, the Nifty closed at 25,693.70 with weekly gain of 373.05 points or 1.47 percent. For the coming week, 24,729.90 followed by 23,766.10 are likely to be good support levels for the Nifty, while the index may face resistance at 26,499.35 and further at 27,305.00 levels.

US Market

The U.S. markets traded mostly lower during the week as tech stocks moved sharply lower amid concerns about valuations and the impact of artificial intelligence.

Some of the major developments during the week are:

Weekly jobless claims in U.S. rise in week ended January 31: Initial jobless claims climbed to 231,000, an increase of 22,000 from the previous week's unrevised level of 209,000. Street had expected jobless claims to inch up to 212,000.

Private sector employment in U.S. rises less than expected in January: ADP said private sector employment rose by 22,000 jobs in January. Street had expected private sector employment to grow by 45,000 jobs.

U.S. services index comes in unchanged in January: The ISM said its services PMI came in at 53.8 in January, unchanged from a revised reading in December. A reading above 50 indicates growth in the sector.

Job openings in U.S. unexpectedly slump to five-year low in December: Job openings slumped to 6.542 million in December from a downwardly revised 6.928 million in November. Street had expected job openings to increase to 7.245 million.

U.S. manufacturing index unexpectedly indicates expansion in January: The ISM said its manufacturing PMI jumped to 52.6 in January from 47.9 in December, with a reading above 50 indicating growth.

European Market

European markets remained mixed during the passing week, following the interest rate decision and commentary from the European Central Bank.

Some of the major developments during the week are:

ECB holds rates steady despite global challenges, uncertain outlook: The Governing Council, led by ECB President Christine Lagarde, held the benchmark interest rate - the deposit rate, steady at 2 percent. 

Eurozone retail sales fall more than forecast: Eurostat said that retail sales fell 0.5 percent month-on-month in December, marking the first fall in four months. The decline followed November's 0.1 percent rise. 

Eurozone inflation falls below 2% target: The flash data from Eurostat revealed that the harmonized index of consumer prices rose 1.7 percent on a yearly basis in January, as expected, following December's 2.0 percent increase.

Eurozone private sector growth weakest in 4 months: The final data from S&P Global showed that the final composite output index posted 51.3 in January, the lowest score since last September. 

Eurozone manufacturing activity shrinks in January: The final survey results from S&P Global showed that the final HCOB manufacturing Purchasing Managers' Index rose to 49.5 in January from a nine-month low of 48.8 in December.

Asian Market

Asian markets traded mostly in red during the passing week following the broadly negative cues from Wall Street, hurt by continued weakness in technology stocks which mirror their peers on the tech-heavy Nasdaq amid concerns about valuations and the impact of artificial intelligence.

Some of the major developments during the week are:

Japan household spending falls in December: The average of household spending in Japan was down 2.9 percent on month in December- coming in at 351,522 yen. That missed forecasts for a fall of 1.3 percent following the 6.2 percent jump in November.

Japan services sector improves in January: The latest survey from S&P Global revealed that the services sector in Japan continued to expand in January, and at a faster pace, with a services PMI score of 53.7.

Japan monetary base declines in January: The monetary base in Japan was down 9.5 percent on year in January- coming in at 589.403 trillion yen.

South Korea’s exports jump in January: South Korea’s exports surged 33.9% y-o-y to $65.85 billion in January 2026, following a downwardly revised 13.3% increase in December 2025.

South Korea’s industrial output growth hits 5-year low in 2025: South Korea’s industrial production rose 0.5% year-on-year in 2025, marking the slowest pace of growth in five years, as gains were largely supported by strong semiconductor demand.
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