
The Indian stock market had a strong trading session on February 4, 2025, with both the BSE Sensex and Nifty 50 closing at multi-week highs. This rally was driven by a surge in industrial, oil & gas, and banking stocks, along with renewed buying interest from foreign institutional investors (FIIs). Let’s break down the market action in detail.
Key Indices Performance
- BSE Sensex: Jumped 1,397.07 points (1.81%) to close at 78,583.81, its highest level in over a month.
- Nifty 50: Climbed 378.20 points (1.62%) to settle at 23,739.25, marking its best close since January 3, 2025.
Sectoral Performance
- Nifty Oil & Gas: Led the rally, gaining 2.70%, driven by stability in global crude oil prices and improved demand outlook.
- Nifty Bank: Rose 1.33%, with HDFC Bank and IndusInd Bank contributing the most to the gains.
- Nifty FMCG: The only sector to close in the red, though losses were minimal.
Top Gainers & Losers

- L&T surged on news of a major contract win in the Middle East.
- Adani Ports benefited from improved cargo volume growth and global trade optimism.
- ITC Hotels dropped over 4%, likely due to profit-booking after a recent rally.
Sector Highlights
Industrial & Banking Stocks
- L&T rose sharply after securing a ₹10,000 crore contract for a Middle East-based pellet plant and direct reduced iron (DRI) facility.
- IndusInd Bank and HDFC Bank led banking gains, with investor sentiment improving after a period of weak performance.
Railways & Capital Goods
- Jupiter Wagons Ltd gained after reporting a ₹45,530 crore budget allocation for railway rolling stock in the Union Budget.
- The Capital Goods sector rebounded 3.29%, recovering from a post-budget dip.
Oil & Gas Sector
- Brent crude oil stabilized at $75.36 per barrel, supporting refiners like Reliance Industries and ONGC.
FII/DII Activity
- Foreign Institutional Investors (FIIs) turned net buyers after 23 consecutive days of selling, purchasing ₹809.23 crore worth of Indian equities.
- Stock futures: ₹7,473.73 crore net bought.
- Index futures: ₹5,353.50 crore net bought.
- Domestic Institutional Investors (DIIs) were net sellers, offloading ₹430.70 crore in equities.
This shift in FII sentiment indicates renewed confidence in the Indian market.
Corporate Earnings & Key Updates
- Ajmera Realty: Posted a 27% YoY rise in revenue for 9M FY25, with debt reduced by 14%.
- Marsons Ltd: Won a ₹42.71 crore contract to supply transformers for MSEDCL.
- Lyka Labs: Reported a 51.7% YoY rise in net profit to ₹2.70 crore for Q3 FY25.
- Bharat Bijlee: Stock soared 19.24%, driven by a 36.8% YoY jump in Q3 profit.
- Premier Energies: Fell 4.62% due to uncertainty over US solar projects.
Global & Macro Influences
- US Trade Policy: President Donald Trump delayed tariffs on Mexico and Canada, reducing global trade uncertainty.
- Rupee Recovery: The INR strengthened 3 paise to close at ₹87.08/USD, recovering from an all-time low.
- HSBC India Manufacturing PMI: Rose to 57.7 in January, signaling strong expansion in India’s manufacturing sector.
Derivatives & Technicals
- FII Derivatives Positioning:
- Index futures open interest: ₹38,242 crore.
- Stock futures open interest: ₹9,413 crore (Bank Nifty segment).
- High Open Interest Stocks:
- Aarti Industries, Adani Ports, and Axis Bank saw increased derivatives activity.
With FII buying returning and strong derivatives positions, analysts expect the bullish momentum to continue in the near term.
Market Outlook & Key Events to Watch
- RBI Policy Meeting (Feb 7, 2025):
- Investors are watching closely for hints on potential rate cuts later this year.
- Budget 2025 Impact:
- Tax reliefs and railway capex are expected to fuel mid-term economic growth.
- Nifty Target for 2025:
- Emkay Global maintains a 25,000 target for Nifty by December 2025, favoring consumer discretionary stocks.
With global factors turning favorable and domestic macro indicators remaining strong, the Indian stock market appears well-positioned for further gains.
Final Thoughts
The stock market delivered a robust performance on February 4, 2025, with major indices hitting multi-week highs. Strong buying interest in industrials, oil & gas, and banking stocks played a key role in the rally. With FIIs turning net buyers, crude oil stabilizing, and the rupee showing resilience, market sentiment is turning increasingly positive.
The upcoming RBI policy meeting and further corporate earnings reports will be key catalysts for market direction. Investors should keep an eye on budget-related developments, which could drive mid-term opportunities in railways, capital goods, and consumption sectors.
For detailed market data, visit:
🔹 BSE India
🔹 NSE India
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