Sensex, Nifty poised for subdued start amid global weakness

Stock market news: Benchmark indices, Sensex and Nifty, are gearing up for a lacklustre start on Tuesday, February 6, in line with the subdued sentiment in Asian markets. The dim outlook follows strong US economic data and recent comments from the Federal Reserve, which have dampened expectations of early rate cuts in the world's largest economy.

As of 8:08 am, GIFT Nifty was trading at 21,814.50 points, indicating that the NSE Nifty 50 is likely to open near its Monday close of 21,771.70.

While China experienced a surge in measures to limit risks related to pledged shares and margin financing, other Asian markets remained muted. Wall Street equities also closed lower overnight, influenced by Federal Reserve Chair Jerome Powell's remarks over the weekend, where he pushed back against the possibility of near-term rate cuts. Additionally, robust growth in the US services sector further weighed on market sentiment.

In the previous session, Indian shares faced volatility and closed lower, particularly in the financial sector after a recent rally.

Ajit Mishra, Senior Vice President of Technical Research at Religare Broking, commented, "Domestic equities have started the week on a subdued note. Indications are in favor of consolidation to continue."

According to exchange data, on Monday, foreign portfolio investors (FPIs) made net purchases of shares worth Rs 519 crore ($62.5 million), while domestic institutional investors sold stocks worth 11.89 billion rupees on a net basis.

Stocks to watch

1. Bharti Airtel: The company fell short of third-quarter profit expectations due to higher costs outweighing subscriber growth.
2. One 97 Communications: The company has denied reports of any probe or violation of foreign exchange rules.
3. Ashok Leyland: The company exceeded profit expectations for the December quarter, benefiting from high demand and low costs.

Key earnings today

• Britannia Industries
• JK Tyre & Industries
• FSN E-Commerce Ventures