Nifty may lose 125 points in global rout

Domestic markets are likely to open weakly on Friday amid a global crisis. The focus will be on the outcome of the RBI’s monetary policy and the prospects for the Indian economy. Gift Nifty reigns at 25,600 against the Nifty futures close of 25,725, indicating a gap down opening of 125-130 points at open.

Analysts say IT stocks will remain under pressure given the risky sentiment towards them following artificial intelligence fears.

Basant Bafna, Head – Fixed Income, Mirae Asset Investment Managers (India) Pvt. Ltd., said: The MPC is expected to remain at the status quo on policy rates. As a policy rate cut has still not translated into market returns, the focus is expected to remain on measures to ensure the transmission of rate cuts totaling 125 basis points over the past year.

“With growth-inflation dynamics well supported, RBI has injected liquidity in the form of Variable Rate Repo (VRR) operations and Open Market Operations (OMOs) in the last quarter. Expectations remain for an RBI communication on the continuity of this, given the increased Credit-Deposit (CD) ratios for banks. Further, in view of the Gross Borrowing Calendar for the financial year 2026-2027, the markets are also looking forward to RBI’s communication on OMOs to support the government’s loan program,” he said.

According to Ponmudi R, CEO of Enrich Money, global equity markets are trading with a pronounced risk-off bias after sharp losses during the overnight US session.

Weakness in global technology stocks and commodities continues to weigh on sentiment, while selling pressure extends to Asian markets. Japan’s Nikkei is down almost 0.8%, while South Korea’s Kospi is under significant pressure and down 3-4%, following the liquidation of heavy tech stocks.

“Against this backdrop, Indian equity markets are expected to open flat to slightly negative, with investors taking a cautious stance ahead of today’s RBI monetary policy announcement. While the recent trade deal continues to provide an underlying positive backdrop by mitigating 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 remain, despite the trade-driven optimism, weighing on near-term sentiment. Fundamentals such as capex momentum and macro stability remain supportive, but the near-term direction of the market is likely to be largely driven by cues from the RBI’s policy stance and external factors,” he added.

Published on February 6, 2026