Stock Market Live: Sensex, Nifty Muted as IT Drag Continues; ITC Hotels & Tata Capital in Focus – Feb 5 Update

Mumbai: After a rollercoaster session yesterday, the Indian stock market kicked off trading on Thursday, February 5, 2026, on a muted note. The benchmark indices, BSE Sensex and NSE Nifty50, are witnessing a phase of consolidation as investors weigh the positive impact of the India-US trade deal against a deepening rout in global technology stocks.

While the bulls managed to defend key support levels yesterday, the sentiment today is "cautiously optimistic" ahead of the Reserve Bank of India’s (RBI) upcoming monetary policy review.

Market at a Glance (11:30 AM Update)

• BSE Sensex: Trading flat with a negative bias, hovering around 83,750 levels.

• NSE Nifty50: Holding above the psychological mark of 25,750 but facing resistance near 25,800.

• GIFT Nifty: Opened marginally higher (+0.09%) but gave up gains, tracking weak Asian markets.

Top Stocks in Focus Today

1. ITC Hotels Ltd: The hospitality major, which made its stock market debut last week (January 29), continues to see heavy trading volumes.

• Live Update: Shares of ITC Hotels are trading up by 1.5% today.

• The Buzz: Analysts have initiated fresh 'Buy' ratings, citing the company's "asset-right" strategy and the booming wedding season demand in Q4 FY26. The stock is attempting to stabilize after initial post-listing volatility.

2. Tata Capital Ltd: The NBFC giant, which listed in October 2025, is among the top gainers in the financial services pack today.

• Live Update: Tata Capital shares surged 2.8% in early trade.

• The Trigger: Market reports suggest that the company’s retail loan book has grown faster than industry estimates in January, coupled with a decline in NPAs (Non-Performing Assets).

3. The IT Sector Drag: The "AI scare" continues to haunt Indian IT giants. Following yesterday's 6% crash, the Nifty IT index is down another 0.8% today.

• Infosys & Wipro: Both are trading in the red as NASDAQ’s overnight fall (down 1.5%) keeps sentiment sour. Investors are worried that new generative AI tools from US competitors could eat into the market share of Indian outsourcing firms.

Global Cues: The 'Tech' Tantrum

Global markets are flashing red signals for technology stocks.

• US Markets: Wall Street closed lower overnight, with the Nasdaq 100 suffering its worst two-day decline since October 2025.

• Asian Markets: Mirroring the US, indices in South Korea (Kospi) and Hong Kong (Hang Seng) are down nearly 2%, dampening the mood for Indian investors.

Sectoral Watch

• Gainers: FMCG and Banking stocks are providing much-needed support to the indices. Stocks like HUL, ICICI Bank, and SBI are trading in the green.

• Losers: Apart from IT, the Metal index is seeing profit-booking after the sharp rally triggered by the trade deal news earlier this week.

Expert View: What Should Investors Do?

Technical analysts advise patience.

• Support & Resistance: The Nifty needs to decisively cross 25,800 to trigger a fresh rally towards 26,000. On the downside, 25,640 acts as crucial support.

• Strategy: "The market is in a 'wait and watch' mode. Avoid aggressive bets in IT for now. Stick to domestic-driven sectors like Banking, Infra, and FMCG," says a senior analyst from Motilal Oswal.