Sensex, Nifty Slide Amid Choppy Trade; Smallcap Index Shines with Gains

“While the Sensex and Nifty 50 ended in the red, the broader market outperformed as the Nifty Smallcap 100 surged 1.86%.”

February 5, 2025: The Indian stock market closed Wednesday’s session in negative territory, with the Sensex and Nifty 50 indices facing declines due to weak momentum in heavyweight stocks and uncertainty over the escalating U.S.-China trade war. Investor sentiment was also cautious ahead of the Reserve Bank of India’s (RBI) monetary policy meeting, where expectations of a rate cut are high under the leadership of the new central bank governor.

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The Sensex dropped 0.40% to close at 78,271, while the Nifty 50 slipped 0.20% to 23,691. In contrast, broader market indices performed well, with the Nifty Smallcap 100 soaring 1.86% to 17,110 and the Nifty Midcap 100 rising 0.67% to close at 54,714.

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The choppy session reflected mixed sentiments among investors, as large-cap stocks struggled while small- and mid-cap counters saw strong buying interest. Market experts attribute the broader market rally to value buying in smaller stocks, even as frontline indices were weighed down by global uncertainties.

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The upcoming RBI policy decision on Friday remains a key focal point, with investors hoping for measures that will provide a boost to the domestic economy.

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Sensex performance, Nifty 50 updates, Indian stock market trends, Nifty Smallcap 100 gains, RBI monetary policy expectations, U.S.-China trade war impact, stock market analysis February 2025