India Stocks: Indian shares fall after three-day rally; metals, rate-sensitives drag

Emami

05/02/2026 05:04

Updates for morning trade

By Bharath Rajeswaran and Vivek Kumar M

Feb 5 (Reuters) -
Indian shares were set to snap a three-day winning run on Thursday, bogged down by metals that tracked global declines and caution in rate-sensitive stocks ahead of the central bank's policy decision.

The Nifty 50 .NSEI was down 0.31% at 25,696.85, while the BSE Sensex .BSESN shed 0.27% to 83,590.84, as of 10:26 a.m. IST.

Twelve of 16 major sectors logged losses. Metals .NIFTYMET, which were up 6% in the last three sessions, slid 2%, tracking lower global prices as a stronger dollar made commodities more expensive for holders of other currencies.

        The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 fell 1.25% and 0.5%, respectively.

Rate-sensitive sectors eased, with financials .NIFTYFIN dropping 0.3%, and auto .NIFTYAUTO and realty .NIFTYREAL declining 0.8% and 1.1% each.

The Reserve Bank of India is widely
expected
 to keep rates unchanged on Friday.

        "The market direction is likely to depend on RBI's upcoming policy announcement and commentary as well as the details on the newly unveiled trade deal with the U.S.," Bajaj Broking said in a note.

        The IT index .NIFTYIT rose 0.4% after sliding about 6% on Wednesday on concerns over AI-driven disruption in the software industry, which triggered a global tech selloff.

The stock benchmarks have jumped 3.8% in the last three sessions, with gains in two days supported by the U.S.-India trade deal.

"After the three-day rally, markets have stabilised, with the benchmark Nifty settling above its 20-day moving average of 25,450 (a key near-term support level); however higher zones remain challenging," said Om Mehra, technical research analyst at SAMCO Securities.

        Among individual stocks, Tata Power TTPW.NS fell 2.5% after the utility firm posted lower profit in the December quarter, hurt by weak performance in the thermal segment.

        Devyani International DEVY.NS jumped 5.6% despite posting a wider loss in the December quarter, as multiple brokerages reiterated a positive view on the company's future earnings outlook, citing strong same-store-sales growth.

 (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Eileen Soreng and Sonia Cheema)

 ((VivekKumar.M@thomsonreuters.com;))