Sensex Up 266 Pts, Nifty 50 Up 51 Pts: FMCG Stocks Shine

Indian equity benchmarks (Nifty 50 and Sensex) had a smart recovery on Friday, 06 February, 2026. Both benchmarks ended the trading week on a positive note. The Nifty 50 gained ~51 points, ending at 25,693.70 and the Sensex rose ~266 points, closing at 83,580.40.

The headline indices were trading in the red during the afternoon session. However, the indices reversed their course after the Reserve Bank of India (RBI) announced its decision to keep the repo rate steady at 5.25%.

The stock market rally was mainly driven by heavy buying in fast-moving consumer goods (FMCG) stocks. They seemed to have provided a defensive shield against volatility in the IT sector.

Why Did The Markets Recover Today?

There are three main reasons for the stock market recovery:

• RBI keeps repo rate unchanged- The main trigger for the stock market recovery was the RBI's decision to maintain the repo rate steady at 5.25%. The repo rate is the interest rate at which the central bank lends money to commercial banks. The central bank might have signalled confidence in India's growth outlook while keeping inflation in check.

• Boost for Foreign Inflows (VRR Limit Scrapped) - In a move to attract stable foreign money, the RBI has lifted the ₹2.5 lakh Cr. investment ceiling under the Voluntary Retention Route (VRR). The VRR is a channel introduced by the RBI to encourage Foreign Portfolio Investors (FPIs) to invest in Indian debt markets by offering them easier operational rules. These rules are introduced in exchange for a commitment to keep the FPI money in India for a minimum period.

• FMCG Defensive Buying - Investors seemed to be shifting towards safety during volatility. Generally, the FMCG stocks are considered "defensive" as people buy household essentials regardless of the economy. Such stocks saw a high rally. Giants like ITC rose ~5.2%, lifting the entire index.

Corporate Announcements And Earnings Updates

There were several major announcements that shaped the day’s stock market action. Here are a few of them.

• MRF - The Madras Rubber Factory (MRF) reported a healthy Q3 performance. Its consolidated net profit surged two-fold to ₹692 Cr. for Q3. The company’s revenue also experienced growth, and the board declared a dividend of ₹3/share.

• Mahindra & Mahindra (M&M) - The automobiles major announced a heavy investment of ₹15,000 Cr. to set up a new manufacturing plant in Nagpur, Maharashtra. With this new facility, M&M is aiming to annually produce 5 lakh vehicles and 1 lakh tractors.

• Reliance Industries Ltd. - The refining giant has resumed buying Venezuelan crude oil after a pause since mid-2025. Reliance has purchased a cargo of 2 million barrels. Analysts are considering this a strategic move to diversify their crude oil supply.

• Bank of Baroda - The bank has received RBI approval to set up a subsidiary for SPD business (Standalone Primary Dealer). Primary dealers are entities authorised to buy and sell government securities directly. They ensure liquidity in the bond market. The bank is set to infuse ₹2,000 Cr. into the SPD arm.

• Redington - The leading technology distributor and Information Technology (IT) solutions provider has posted a 15.8% rise in net profit to ₹403 Cr., with revenue climbing 13.7%.

In Commodities, Gold Rebounds And Copper Cools

Spot gold i.e., the bullion price for immediate delivery, rose 2.3% to reach $4,879.45/ounce. Similarly, spot silver was up 3.8% at $73.91/ounce.

Meanwhile, copper futures i.e., contracts to buy copper at a future date at a set price, fell 0.16% to ₹1,256.45/kg on the Multi Commodity Exchange (MCX) due to weak demand in the domestic market.

Closing Outlook

The market week seems to have concluded with a sense of cautious optimism. The revival in FMCG and strong corporate earnings can suggest that the internal consumption story of India is still very much intact.

It would be interesting to see what the following market week brings. One of the most awaited events include the US-India Trade Agreement details.

Source

Economic times

The Hindu BL

Moneycontrol