Key Market Insights - Altifi Weekly Bulletin | 06 February 2026

Altifi Weekly Bulletin: 6th February, 2026

RBI Monetary Policy Updates

• The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) voted unanimously to not change the repo rate, keeping its stance neutral. The repo rate stands at 5.25%.
• The standing deposit facility (SDF) rate stands at 5.00% and the marginal standing facility (MSF) rate and Bank Rate at 5.50% unchanged. The MPC decided to maintain its neutral stance, supported by the low inflation rates and favourable growth outlook.
• The RBI projected India’s real gross domestic product (GDP) growth for 2025-26 at 7.4%. The projections for real GDP growth in first and second quarter next fiscal were revised upward to 6.9% and 7.0%, respectively.

Economy and regulatory updates

• The government has contained the fiscal deficit for the first nine months of the current fiscal at 54.5% of the budget estimates as against 56.7% in the year-ago period amid expansion in corporation tax and customs duty and an on-year contraction in capital expenditure (capex) in December.
• India HSBC Services PMI rose to 58.5 in January compared with 58.0 in December while the HSBC Composite PMI edged up to 58.4 from 57.8.
• US and India have agreed on a trade deal, under which US tariffs on Indian goods were cut to 18% from 50% in exchange for India lowering trade barriers, cutting tariffs to 0% and stopping its purchases of Russian oil and buying oil instead from the US and potentially Venezuela.
• India and the six-nation bloc of Middle Eastern nations, the Gulf Cooperation Council (GCC), inked terms of reference for starting talks for a free trade agreement (FTA).
• SEBI proposed a comprehensive overhaul of the 'fit and proper person' framework governing market intermediaries, aiming to bring greater procedural clarity and fairness to the regulatory process.
  
  

MOSPI, RBI

Indian debt market update

• The interbank call money rate ended lower at 4.45% on February 06 compared with 4.80% on January 30.
• Government bond prices ended lower this week and the yield on the 10-year benchmark 6.48% Government Security (GS) 2035 paper closed at 6.74% compared with 6.70% on January 30.
• Government bond prices declined early in the week as the budget proposed bigger-than-expected market borrowing of Rs 17.2 lakh crore for next fiscal.
• However, during the mid-week these falls were capped due to fresh buying after the announcement of US-India trade pact amid persistent supply concerns following borrowing projections. Prices gained further on expectations of continued RBI bond purchases ahead of record borrowing next fiscal year. Later, they rose as the RBI accepted bond purchase bids at higher-than-expected prices.
• However, the week ended with gains shattered as the central bank did not announce any fresh liquidity support in its monetary policy even as the market braced for a record supply of bonds next fiscal year.
• Meanwhile, in the weekly debt sale held on February 6, the RBI auctioned 6.68% GS 2040 and 6.90% GS 2065 for a total notified amount of Rs 29,000 crore.

Source: CRISIL Fixed Income Database, RBI *Weighted Average Yield ^Data as of 30th Jan 2026 vs 23rd Jan 2026 vs 26th Dec 2025 respectively

Source: CRISIL Fixed Income Database; *Weighted Average Yield

Indian equity market updates

• Indian equities ended higher this week, supported by stock-specific strength amid optimism around the India–US trade agreement, and the RBI’s decision to keep the repo rate unchanged at 5.25% and maintain a neutral stance. However, a few losses were seen due to profit booking. The BSE Sensex and Nifty 50 rose 1.59% and 1.47%, respectively.
• Almost all the major sectors ended higher with power, realty and consumer durables (CD) gaining the most. The BSE Power, BSE Realty and BSE CD rose 6.58%, 5.41% and 4.32%, respectively.
• The domestic market sold Rs 1,265 crore worth of equities on February 6, 2026, compared with buying of Rs 578 crore worth of equities on January 30, 2026.
• Foreign institutional investors sold equities worth Rs 2,151 crore on February 5, 2026, compared with buying of Rs 2,478. crore on January 30, 2026.
• Domestic mutual funds were net sellers, selling equities worth Rs 1,041 crore on February 1, 2026.

Source: BSE, NSE

Source: SEBI, NSE

Global Equity market summary

• US stocks had a mixed week, with the Nasdaq Composite declining -3.93% due disappointing tech earnings and a weaker-than-expected job report. Additionally, after US President’s pick of Kevin Warsh as the next Fed Chair, uncertainty around geopolitical tensions and renewed fears of a US government shutdown led to further losses. However, the Dow Jones rose 0.03% marginally due to gains in industrials stocks.
• Britain's FTSE index ended 0.98% higher during the week primarily driven by increased buying in defence and finance stocks. The healthcare sector also contributed to the gains, following the release of strong earnings reports. A weaker pound further boosted the market. However, some losses were incurred after the Bank of England's dovish comments and amid ongoing political uncertainty, which tempered the overall gains.
• Asian equities closed mixed this week. Japan's Nikkei index ended 1.75% higher during this week driven by a decline in precious metal prices and better-than-expected earnings report. However, gains were limited as certain sectors experienced losses. AI-linked shares and metal stocks declined sharply in response to the drop in gold prices.
• Hong Kong's Hang Seng Index ended 3.02% lower primarily driven by a significant fall in telecommunications stocks. The downturn was triggered by the decision by the Chinese authorities to raise the value-added tax rate on mobile data, messaging and broadband services from 6% to 9%. The market was also weighed down by a global selloff in technology shares and sharp losses in silver futures, which dampened investor sentiment. However, strong southbound inflows helped offset losses in technology stocks that were driven by AI valuation concerns.
• China's Shanghai Composite Index closed -1.27% lower this week, largely because of a global commodity price rout that negatively impacted the sentiment. Furthermore, the index was pressured by a worldwide selloff in technology and AI shares. The sell-off in precious metals also had a ripple effect on related sectors, contributing to the downturn.

Source: Websites of respective stock exchanges; *Data as on Feb 5

Global Yield

• US Treasury prices rose during the week due to weak labour market data.
• Prices began the week on a weaker note as stronger-than-expected economic growth data and industrial data reinforced the view that the Federal Reserve (Fed) could keep rates higher for longer, reducing expectations of near-term rate cuts.
• However, during the later part of the week treasury prices increased due to weak jobless claims and as ADP employment data raised expectations of a Fed rate cut.
• The yield on the 10-year benchmark Treasury bond ended at 4.21% on February 5 compared with 4.26% on January 30.

Source: Financial Websites *As of Feb 5

Commodities and Currency

• Crude oil prices fell to $ 63.29 per barrels on the NYMEX on week on 6, February 2026 from $ 65.21 on 30, January 2026 after Iran and US agreed to hold talks in Oman on Friday, which eased concerns about the supply from a major Middle Eastern producer.
• Gold prices ended lower this week due to profit booking and following Fed chair’s nomination.
• Silver prices ended lower this week, mirroring the trend in gold due to a strong US dollar index.
• The rupee closed higher against the US dollar this week, supported by improved sentiment following the central bank’s neutral policy stance in the latest monetary policy meeting, continued dollar sales by foreign banks and optimism around the India–US trade deal. However, losses were seen due to intermittent foreign fund outflows.

*Data as on Feb 5, 2026 Source: Respective commodity exchanges, ibjarates.com

Source: Financial Websites

Global Economic

• US producer prices rose 3% year-on-year in December 2025, unchanged compared to the previous month.
• US S&P Global Manufacturing PMI increased to 52.4 in January 2026, above the preliminary estimate of 51.9 and up from December 2025 five-month low of 51.8.
• US S&P Global Services PMI rose to 52.7 in January of 2026 from 52.5 in the previous month while Composite PMI rose to 53.0 from 52.7.
• The European Central Bank left its key interest Rate unchanged at 2.15% in its February 5th, 2026 decision while the marginal lending facility rate steady at 2.4% and its deposit facility rate unchanged at 2%.
• Eurozone retail sales rose by 1.3% year over year in December 2025, compared to a revised 2.4% increase in November 2025.
• Eurozone annual inflation eased to 1.7% in January 2026, compared to 2.0% in December 2025 while the annual core inflation rate fell to 2.2% in January of 2026 from 2.3%.
• The Eurozone economy expanded by 1.3% year-on-year in the final quarter of 2025, compared to 1.4% in the third quarter of 2025.
• The Bank of England kept its Bank Rate unchanged at 3.75% in February 2026, with a narrow 5 to 4 vote, as policymakers balanced easing inflation pressures against risks from a weakening economy.
• China RatingDog General Manufacturing PMI increased to 50.3 in January 2026 compared to 50.1 in December 2025.

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