Stock Market Today: Sensex, Nifty 50 End Mixed on Feb 1, 2025; Energy Stocks Rally, IT Drags

Stock Market Today: Indian stock markets closed with mixed results on February 1, 2025, as the Sensex and Nifty 50 faced volatility amid global uncertainty and sector-specific trends. Here’s a breakdown of the day’s action, key drivers, and what investors should watch next.

Market Snapshot at Closing Bell

  • Sensex: Rose 0.2% to 74,150, recovering from a mid-session dip.
  • Nifty 50: Slipped 0.1% to 22,430, weighed down by IT and pharma stocks.
  • Gift Nifty: Traded sideways at 22,460, reflecting caution ahead of the US Fed meeting.
  • Top Sectors:
    • Energy (+2.5%): ONGC, Reliance Industries, and IOC surged.
    • PSU Banks (+1.6%): SBI and Bank of Baroda gained on strong earnings.
    • IT (-1.8%): TCS, Infosys fell on weak global tech sentiment.

What Moved the Markets Today?

1. Energy Stocks Fuel Gains

  • Shares of oil and gas companies jumped after reports of a potential hike in domestic gas prices. ONGC (+4%) and IOC (+3.2%) were top performers.
  • Reliance Industries (+2%) contributed to Sensex’s recovery, driven by bullish brokerage reports.

2. IT & Pharma Underperform

  • IT stocks dropped as major US clients delayed project spending. Infosys (-2%) and Wipro (-1.5%) led the decline.
  • Pharma giants like Sun Pharma (-1.4%) and Dr. Reddy’s (-1.1%) saw profit-booking after recent rallies.

3. Global Uncertainty

  • Asian markets traded flat ahead of the US Federal Reserve’s rate decision.
  • Brent crude prices fell 1% to $82/barrel, easing inflation fears but hurting energy-heavy indices.

Key Stocks in Focus

  • Adani Ports (+3.8%): Won a ₹2,200-crore contract for a new logistics hub.
  • Zee Entertainment (-6%): Shares plunged as merger talks with Sony hit a roadblock.
  • Tata Power (+2.5%): Announced a ₹1,500-crore solar project in Rajasthan.

Expert Opinions

  • Rajesh Kapoor, Market Strategist: “The energy rally is sustainable due to policy tailwinds. Investors should hold quality stocks despite short-term volatility.”
  • Neha Gupta, Senior Analyst: “IT sector weakness may persist until global demand rebounds. Shift focus to defensive sectors like FMCG.”

Global Markets & Rupee Update

  • Dow Jones Futures: Flat at 38,200 as investors await Fed cues.
  • USD/INR: The rupee weakened slightly to 82.95 against the dollar.
  • Gold Prices: Edged up 0.3% to ₹62,000/10 grams on safe-haven demand.

What Should Investors Do Next?

  1. Track the Fed Meeting: Clarity on US interest rates could dictate global fund flows.
  2. Monitor Q4 Earnings: Banking and auto stocks will be in focus this week.
  3. Sector Rotation: Consider shifting to energy, renewables, and PSU banks for medium-term gains.

Final Takeaways

  • Short-Term Traders: Use Gift Nifty trends for intraday cues.
  • Long-Term Investors: Accumulate blue-chip stocks during dips.
  • Risks Ahead: Geopolitical tensions and Fed policy changes could trigger volatility.

Stay calm, stay informed, and align your portfolio with evolving market trends!

Note: This article is for educational purposes only. Consult a financial advisor before making investment decisions.

Leave a Comment