Market sentiment remained cautious, with investors evaluating global macroeconomic trends and corporate earnings
The Indian stock market witnessed a subdued session on Thursday, February 6, as benchmark indices struggled amid mixed global cues. The BSE Sensex declined by 166.43 points or 0.21%, settling at 78,104.85. The Nifty50 was also in the red, down by 54.75 points or 0.23%, trading at 23,641.55. Market sentiment remained cautious, with investors evaluating global macroeconomic trends and corporate earnings.
Sectoral Performance Reflects Mixed Sentiment
Sectoral indices displayed a mixed trend, reflecting the broader uncertainty in the market. The Nifty Auto, FMCG, Consumer Durables, Realty, and Metal indices were among the worst performers, struggling to find support. The Nifty Bank index remained almost flat, recording a marginal decline of 0.02%.
On the other hand, defensive sectors showed resilience. The Nifty Pharma, Oil & Gas, Healthcare, Media, and IT indices were trading higher, indicating selective buying in these segments. Investors sought refuge in healthcare and information technology stocks, while oil and gas counters found support from steady crude prices.
Info Edge Delivers Strong Results
Among individual stocks, Info Edge remained in focus after posting better-than-expected Q3FY25 results. The company’s revenue and profit growth exceeded market estimates, driven by strong performance in the recruitment segment.
Recruitment billings, a key indicator of hiring activity, showed double-digit growth for the second consecutive quarter. This performance highlighted strong demand in both IT and non-IT sectors, reinforcing the company’s market position. Brokerage firms turned optimistic on Info Edge, with analysts citing continued strength in hiring trends as a key growth driver.
Cognizant’s Revenue Guidance Lifts IT Sentiment
Another key development in the technology sector came from Nasdaq-listed Cognizant, which met its revenue guidance for the fourth quarter of CY2024. The company projected 2025 revenue growth between 3.5% and 6% in constant currency terms, reflecting improving global IT demand.
Cognizant’s performance serves as a critical benchmark for the Indian IT services sector, influencing investor sentiment toward companies such as TCS, Infosys, Wipro, and HCL Technologies. The stronger-than-expected guidance for 2025 boosted confidence in the sector, signaling a potential rebound after a challenging year.
Stocks in Focus Amid Dividend Announcements
Dividend declarations from multiple companies also drew market attention. GAIL (India), ONGC, NLC India, Nestle India, Marico, and Computer Age Management Services (CAMS) were among the major players announcing interim dividends.
Shares of these companies are expected to remain in focus, particularly as they are set to trade ex-dividend on Friday, February 7, 2025. Dividend stocks often attract interest from investors seeking steady income, leading to short-term price fluctuations in these counters.
Global Cues Influence Market Trends
Global markets played a crucial role in shaping investor sentiment. Overnight, Wall Street saw a mixed close, with the Nasdaq Composite inching higher, supported by gains in the technology sector. However, the Dow Jones Industrial Average and S&P 500 remained under pressure amid concerns over interest rate decisions by the US Federal Reserve.
Asian markets mirrored this mixed trend, with some indices trading higher while others remained subdued. Investors continued to assess inflation data and monetary policy outlooks from major economies, influencing risk appetite across global equities.
Currency and Commodity Markets
In the foreign exchange market, the Indian rupee showed stability against the US dollar, hovering within a narrow range. Crude oil prices remained steady, with Brent crude trading near $78 per barrel, supported by supply concerns and geopolitical tensions.
Gold prices edged higher as investors sought safe-haven assets amid global uncertainty. The precious metal remained a preferred choice amid fluctuating equity markets, with demand for bullion increasing in response to central bank policy expectations.
Market Outlook
The domestic stock market remains in a consolidation phase, reacting to earnings reports and global economic developments. The performance of key indices in the coming sessions will largely depend on corporate results, macroeconomic data, and global market trends.
With sectoral rotation in play, market participants are closely watching movements in IT, pharmaceuticals, and oil & gas stocks, which have shown resilience. Meanwhile, banking and metal stocks may experience volatility based on interest rate expectations and commodity price fluctuations.
In the near term, market sentiment is expected to remain cautious, with investors weighing global cues, monetary policies, and upcoming earnings announcements before making significant moves.
