Domestic markets are likely to open on a flat note despite a cautious mood and mixed global cues. The focus has now shifted to the upcoming RBI monetary policy meet. Analysts expect the consolidation phase to continue.
According to Madhavi Arora, Emkay Global Research, “Even as global macro and market narratives continue to swing, the Feb-26 MPC faces a more supportive external backdrop, aided by the US–India trade resolution, which should help stabilize the current account, FPI flows, and the INR, in our view. “That said, inflation is likely to edge higher as favorable base effects fade, while underlying growth drivers remain mixed, despite a resilient headline GDP,” she said.
The RBI could opt for a pause in the Feb-26 MPC. Monetary transmission, however, remains weak despite a fairly deep easing cycle and sustained liquidity infusion, and continues to be the key policy constraint., she said, adding that the bear-flattened sovereign curve, widening corporate bond spreads, and rising money-market and wholesale deposit rates underscore this friction.
Gift Nifty indicates a flattish opening, while equities across the Asia-Pacific region are ruling mixed. While the Korea and Taiwan markets are deep in the red, Nikkei is little changed.
India VIX declined for the third consecutive day and settled at 12.25, indicating that volatility is shrinking. Om Mehra, Technical Research Analyst, SAMCO Securities, said: Nifty has formed a base and the unfilled gap remains an important short-term support. A buy-on-dip approach may be preferred for the next session.
Most companies have declared Q3 results and according to analysts it was a mixed bag. The earnings for 3Q so far have been in line, said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.
The long-awaited Indo-US trade deal announcement will have a multi-layered effect on the economy, prevailing market sentiments, and several sectors exporting to the US will benefit, said Khemka. “Thus, we expect Indian markets to remain firm with a positive bias, with sector/ stock specific action, driven by recent trade deals (US and EU), Union Budget announcements and the ongoing Q3 earnings season,” he further said.
Published on February 5, 2026