Sensex rises 266 pts, Nifty above 25,650; will stock market rally continue next week?
Market sentiment found some support from regulatory clarity after the RBI signalled that banks would be allowed to lend to REITs, a move seen as positive for long-term funding in the real estate and credit ecosystem, said Ponmudi R, CEO of Enrich Money.
- Feb 6, 2026,
- Updated Feb 6, 2026 4:11 PM IST
Domestic equity benchmarks Sensex and Nifty resumed their upward momentum on Friday after a one-day pause, as the Reserve Bank of India kept the policy repo rate unchanged at 5.25% in its first Monetary Policy Committee (MPC) meeting of 2026.
At close, the Sensex rose 266.47 points, or 0.32 per cent, to settle at 83,580.40, while the Nifty gained 50.90 points, or 0.20 per cent, to end at 25,693.70.
Market sentiment found some support from regulatory clarity after the RBI signalled that banks would be allowed to lend to REITs, a move seen as positive for long-term funding in the real estate and credit ecosystem, said Ponmudi R, CEO of Enrich Money.
“On the domestic front, support also came from a slight recovery in the Indian rupee, aided by moderated corporate dollar demand, which helped ease near-term currency concerns,” Ponmudi added.
ITC emerged as top gainer on the Sensex, rising 5.09% to Rs 326.05. Kotak Mahindra Bank followed with a 3.44% gain, while Hindustan Unilever, Bajaj Finance, Bharti Airtel and Power Grid advanced 2.63%, 1.88%, 1.55% and 1.37%, respectively.
Five stocks, namely ITC, Kotak Mahindra Bank, ICICI Bank, Bharti Airtel and Hindustan Unilever (HUL), contributed heavily to the Sensex’s fall. “We expect the consolidation to continue with a positive bias as long as the Nifty holds above the 25,400 level. However, trading remains challenging due to sharp intraday swings amid mixed global signals,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Mishra said that in the current environment, we maintain a stock-specific approach based on relative strength, with a preference for banking and energy stocks on dips while remaining selective in other sectors. “It is advisable to avoid the IT pack for now and wait for signs of stability before initiating fresh positions," he noted. Among sectoral indices, the BSE FMCG index gained 2.05% to close at 19,003.04, while the BSE Telecommunication rose 0.91% to settle at 3,041.63. Vinod Nair, Head of Research at Geojit Investments Limited, said markets expected a mildly dovish undertone, but the RBI maintained its neutral stance, increasing India's 10-year bond yields.
In the Sensex index, shares of Indian Oil Corporation (IOC) hit their fresh 52-week high of Rs 181 on BSE. “The market has completed one leg of correction, and for short-term traders, 25,500/83,000 and 25,350/82,500 would act as crucial support zones. If the market succeeds in trading above these levels, it could bounce back to 25,800/83,800," said Amol Athawale, VP Technical Research, Kotak Securities. "A successful breakout of 25,800/83,800 could push the market up to 26,000-26,050/84,500-84,700. On the flip side, a decline below 25,350/82,500 would make the uptrend vulnerable,” Athawale added.
Market breadth remained negative on the BSE. Of the 4,359 actively traded stocks, 1,916 ended in the green, while a dominant 2,273 declined and 170 settled unchanged. The session saw 83 stocks scaling fresh 52-week highs, compared with 107 counters sliding to new 52-week lows. In addition, 158 scrips were locked at their upper circuits, whereas 149 hit lower circuit limits.| “On the global front, investor focus remains on US–Iran negotiations with potential implications on crude oil prices, alongside ongoing developments in AI and technology that continue to drive global sectoral rotations," Nair said.
Ponmudi said the 50-pack index recovered smartly to reclaim the 25,600 mark and close marginally higher than the previous session, after falling to an intraday low of around 25,492, bouncing off the 25,450-25,500 support zone, which coincides with the 20-day EMA.
“The recent rebound from the 25,000 region has lacked follow-through, with price action indicating range-bound consolidation rather than a trending move. while immediate resistance lies near 25,700, where repeated supply is capping upside attempts. A higher resistance zone is seen at 25,850–26,000, which marks a prior supply and psychological barrier. Unless Nifty can reclaim and sustain above the 25,800 band convincingly, the market remains prone to sell-on-rise pressure, keeping the near-term bias neutral to range-bound,” Ponmudi said.
Domestic equity benchmarks Sensex and Nifty resumed their upward momentum on Friday after a one-day pause, as the Reserve Bank of India kept the policy repo rate unchanged at 5.25% in its first Monetary Policy Committee (MPC) meeting of 2026.
At close, the Sensex rose 266.47 points, or 0.32 per cent, to settle at 83,580.40, while the Nifty gained 50.90 points, or 0.20 per cent, to end at 25,693.70.
Market sentiment found some support from regulatory clarity after the RBI signalled that banks would be allowed to lend to REITs, a move seen as positive for long-term funding in the real estate and credit ecosystem, said Ponmudi R, CEO of Enrich Money.
“On the domestic front, support also came from a slight recovery in the Indian rupee, aided by moderated corporate dollar demand, which helped ease near-term currency concerns,” Ponmudi added.
ITC emerged as top gainer on the Sensex, rising 5.09% to Rs 326.05. Kotak Mahindra Bank followed with a 3.44% gain, while Hindustan Unilever, Bajaj Finance, Bharti Airtel and Power Grid advanced 2.63%, 1.88%, 1.55% and 1.37%, respectively.
Five stocks, namely ITC, Kotak Mahindra Bank, ICICI Bank, Bharti Airtel and Hindustan Unilever (HUL), contributed heavily to the Sensex’s fall. “We expect the consolidation to continue with a positive bias as long as the Nifty holds above the 25,400 level. However, trading remains challenging due to sharp intraday swings amid mixed global signals,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Mishra said that in the current environment, we maintain a stock-specific approach based on relative strength, with a preference for banking and energy stocks on dips while remaining selective in other sectors. “It is advisable to avoid the IT pack for now and wait for signs of stability before initiating fresh positions," he noted. Among sectoral indices, the BSE FMCG index gained 2.05% to close at 19,003.04, while the BSE Telecommunication rose 0.91% to settle at 3,041.63. Vinod Nair, Head of Research at Geojit Investments Limited, said markets expected a mildly dovish undertone, but the RBI maintained its neutral stance, increasing India's 10-year bond yields.
In the Sensex index, shares of Indian Oil Corporation (IOC) hit their fresh 52-week high of Rs 181 on BSE. “The market has completed one leg of correction, and for short-term traders, 25,500/83,000 and 25,350/82,500 would act as crucial support zones. If the market succeeds in trading above these levels, it could bounce back to 25,800/83,800," said Amol Athawale, VP Technical Research, Kotak Securities. "A successful breakout of 25,800/83,800 could push the market up to 26,000-26,050/84,500-84,700. On the flip side, a decline below 25,350/82,500 would make the uptrend vulnerable,” Athawale added.
Market breadth remained negative on the BSE. Of the 4,359 actively traded stocks, 1,916 ended in the green, while a dominant 2,273 declined and 170 settled unchanged. The session saw 83 stocks scaling fresh 52-week highs, compared with 107 counters sliding to new 52-week lows. In addition, 158 scrips were locked at their upper circuits, whereas 149 hit lower circuit limits.| “On the global front, investor focus remains on US–Iran negotiations with potential implications on crude oil prices, alongside ongoing developments in AI and technology that continue to drive global sectoral rotations," Nair said.
Ponmudi said the 50-pack index recovered smartly to reclaim the 25,600 mark and close marginally higher than the previous session, after falling to an intraday low of around 25,492, bouncing off the 25,450-25,500 support zone, which coincides with the 20-day EMA.
“The recent rebound from the 25,000 region has lacked follow-through, with price action indicating range-bound consolidation rather than a trending move. while immediate resistance lies near 25,700, where repeated supply is capping upside attempts. A higher resistance zone is seen at 25,850–26,000, which marks a prior supply and psychological barrier. Unless Nifty can reclaim and sustain above the 25,800 band convincingly, the market remains prone to sell-on-rise pressure, keeping the near-term bias neutral to range-bound,” Ponmudi said.