Nifty Slips Below 25,700, SENSEX Drops 504 Points

Bearish sentiment has made its return to the stock market after a short period of optimism. On 05 February 2026, the sentiment on Dalal Street turned cautious.

The Nifty 50 declined by 133 points. It slipped below the important psychological support level of 25,700, settling at 25,643. The SENSEX also declined 504 points, closing at 83,313.93 points. The market weakness was broad-based. Meaning, the benchmark indices (like Nifty 50 and SENSEX) declined, but the broader markets (Mid-cap down 166.05 points and Small-cap down ~221 points) displayed a gloomier picture.

The NSE advance-decline ratio stood at 1:2. Meaning, for every one stock that gained, two stocks faced selling pressure. Of the 50 Nifty constituents, 30 have ended the session in the red. The session also witnessed a brutal sell-off in precious metals. Silver prices crashed ~17% in Asian markets.

Why Did The Markets Fall Today?

There are three main reasons for the market slide.

1. Heavyweight Weakness and Profit Booking - After three days of consecutive gains, traders seemed to have rushed to book profits. The selling was visible across major heavyweight stocks, particularly in the IT (Information Technology) sector.

2. The Commodity "Bloodbath" - Global markets witnessed a heavy correction in commodity prices. Gold and silver prices declined due to the US dollar hitting a two-week high. When the dollar strengthens, commodities priced in dollars become expensive. Thus, a sell-off can be seen in commodities.

3. Weak Market Breadth - The "Market Breadth" means the ratio of stocks rising versus falling. On 05 February 2026, the ratio stood at 1:2 (for every one stock that went up, two went down). This shows that the weakness was broad based indicating a “weak” market breadth.

Corporate Earnings: Q3 Roundup

The Q3 earnings season continues to be a mixed bag of rebounds and sector-specific declines.

1. Indian Oil Corporation (IOC)

The Q3 result of IOC was the major highlight against the falling markets. The state-run oil giant reported a 322% YoY (year-over-year) profit after tax (PAT) growth. IOC’s revenue, too, rose 7% YoY. The growth was led by stronger refining margins and superior operating performance in the previous quarter.

2. Nykaa

FSN E-Commerce (Nykaa) displayed strong growth due to a strong festive season performance. Its PAT was up 84% QoQ (Quarter-over-Quarter) and revenue was up 23.5% QoQ.

3. Hindustan Copper

Hindustan Copper reported that its net profit more than doubled. However, the stock faced a strong impact from global copper prices dipping below the $13,000 mark.

4. Infrastructure And Paint Stocks

• J Kumar Infraprojects reported a weak Q3 as monsoon disruptions impacted its project execution.

• Berger Paints’ volumes jumped, but profit declined due to higher brand spending and scale-related costs.

• Rail Vikas Nigam (RVNL)’s revenue slightly grew compared to the previous year.

How Did The Commodities Perform?

On 05 February 2026, silver collapsed ~17% in Asian markets. Indian gold and silver ETFs (Exchange Traded Funds) saw NAVs (Net Asset Values) drop by up to 21%.

The decline has resulted from a combination of:

• Easing geopolitical tensions (reducing the need for safe-haven assets)

• Signs of easing US-China trade tensions punctured the rally.

Forex And Macro Indicators

The Indian rupee ended the day slightly higher despite the equity market slide. The Rupee closed at ₹90.3550 per U.S. dollar (a 0.1% rise).

The local currency might be supported by:

• The Reserve Bank of India’s (RBI) actions of mid tenor dollar-rupee buy-sell swap operations (a monetary policy of spending US dollars to manage rupee liquidity).

• The drop in global crude oil prices

Closing Outlook: Eyes On The RBI

The 3-day rally has now hit a pause. The current market slide was broad-based and resulted from domestic as well as global factors.

The market's focus now has shifted entirely to the RBI Monetary Policy Committee (MPC) decision scheduled for Friday, 06 February 2026. The market seems to be awaiting the RBI’s move to tackle the rupee slide against the US dollar.

Source:

NSE

Economic Times

Deccan Chronicle

CNBC TV 18

CNBC TV 18

CNBC TV 18

CNBC TV 18

CNBC TV 18