Domestic markets are likely to open weak on Friday amid a global melt down. The focus will be on the outcome of the RBI monetary policy and outlook on the Indian economy. Gift Nifty is ruling at 25,600 against the Nifty futures close of 25,725, signaling a gap-down opening of 125-130 points at open.
According to analysts, IT stocks will remain under pressure given the risk-off sentiment towards them following the artificial intelligence scare.
Basant Bafna, Head – Fixed Income, Mirae Asset Investment Managers (India) Pvt. Ltd., said: The MPC is expected to remain on status quo in terms of policy rates. As a reduction in policy rates has still not translated into market yields, focus is expected to remain on measures to ensure transmission of rate cuts aggregating 125 basis points over the past year.
“With the growth-inflation dynamics remaining well supported, RBI has been infusing liquidity in the form of Variable Rate Repo (VRR) Operations as well as Open Market Operations (OMOs) over the past quarter. Expectations remain for an RBI communication regarding continuity of the same in view of elevated Credit-Deposit (CD) ratios for banks. Further, in view of the Gross Borrowing Calendar for FY 2026-27, markets also look forward to RBI’s communication on OMOs to support the Government’s Borrowing Programme,” he said.
According to Ponmudi R, CEO of Enrich Money, the global equity markets are trading with a pronounced risk-off bias following sharp losses in the overnight US session.
Weakness in global technology stocks and commodities continues to weigh on sentiment, with selling pressure extending into Asian markets. Japan’s Nikkei is down nearly 0.8%, while South Korea’s Kospi is under significant pressure, sliding 3–4%, led by heavy tech stock liquidation.
“Against this backdrop, Indian equity markets are expected to open flat to mildly negative, with investors adopting a cautious stance ahead of today’s RBI Monetary Policy announcement. While the recent trade agreement continues to provide an underlying positive backdrop by easing external headwinds and supporting export-oriented sectors, the sharp multi-day rally has clearly entered a consolidation phase. Profit-taking at higher levels and the continued absence of sustained FII. Participation, despite the trade-led optimism, remain near-term drags on sentiment Domestic fundamentals such as capex momentum and macro stability remain supportive, but near-term market direction is likely to be driven primarily by cues from the RBI’s policy stance and external factors,” he added.
Published on February 6, 2026