What Investors Should Know on February 5, 2026

As the markets opened on Thursday, February 5, 2026, Indian equity benchmarks struggled to maintain the momentum seen in recent sessions, reflecting a mix of domestic and global headwinds that are shaping investor sentiment. The BSE Sensex and NSE Nifty 50 both moved into negative territory, breaking a short-lived rally that had lifted markets this week. The Nifty ended lower by over 130 points at 25,642.80, while the Sensex slipped 503.76 points to 83,313.93, signaling broad-based selling pressure across key sectors.

A prominent driver of today’s cautious tone was weakness in IT and metal stocks. These sectors underperformed as technology shares faced selling pressure amid renewed concerns over the sustainability of AI-led growth narratives, a trend that is spilling over from global markets into India’s broad indices. This softness was compounded by cooling optimism following what had been a strong run earlier in the week, driven by positive trade news.

Domestic Factors and Technical Trends
Early trade data showed the Sensex trading below key resistance levels, suggesting that short-term bears are in control. Meanwhile, support for the Nifty near crucial levels around 25,500–25,550 could offer some respite if bulls regain conviction. Market analysts believe that a range-bound day might be what traders should expect, with selective stock picks and day trading strategies likely more effective than broad index bets right now.

Global Cues and Foreign Markets
International markets added to the cautious mood. U.S. stock futures and major global indices traded lower during early Asian hours, mainly due to volatility in technology stocks and portfolio adjustments ahead of key corporate earnings. Such global signals often impact investor sentiment in India, especially in sectors like IT and financials that are closely linked to overseas demand and global economic trends.

Broader Market Behaviour
Despite the negative drift in major indices, not all segments of the market were weak. Some consumer-oriented and defensive stocks showed relative resilience, and small- and mid-cap stocks managed to hold up better than benchmark indices in certain pockets of trade. This divergence highlights how investors are rotating capital within the market amid mixed signals.

What’s Next? Watch for Key Events
Looking ahead, all eyes are on the upcoming Reserve Bank of India (RBI) policy announcement, where most economists expect no change in interest rates, though the statement could influence markets depending on the tone regarding growth and inflation. Additionally, quarterly earnings from major firms will offer fresh catalysts for sector movement.

In essence, February 5, 2026 unfolded as a day where caution prevailed over conviction. With benchmarks retreating from recent highs and sectors like IT facing selling pressure, investors are reminded that markets can shift quickly in response to global trends and domestic macroeconomic cues. Remaining selective and closely tracking support and resistance levels could be key for navigating this phase in trading.