Bourses trade near neutral lines in early afternoon session

Indian markets traded near neutral lines in early afternoon session. Currently, Sensex traded in red, while Nifty traded in green. Traders were cautious ahead of RBI interest rate decision due on February 06. Traders took note of report that the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.5 in January from 58.0 in December. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 58.4 in January as against 57.8 in December. Sector wise, steel sector remained in limelight as Indian Steel Association (ISA) President Naveen Jindal has said that a stronger trade partnership between India and United States (US) will significantly enhance input security for the domestic steel sector as well as enhance competitiveness, exports and broader economic growth.

On the global front, Asian markets are trading mostly in green as China service sector growth improved in January, driven by stronger growth in new business. The headline RatingDog services Purchasing Managers' Index rose to 52.3 from 52.0 in December. The latest rise in services activity was the strongest in three months.

The BSE Sensex is currently trading at 83714.84, down by 24.29 points or 0.03% after trading in a range of 83119.95 and 83885.87. There were 22 stocks advancing against 8 stocks declining on the index.

The top gaining sectoral indices on the BSE were Utilities up by 2.41%, Oil & Gas up by 2.14%, Power up by 2.11%, Consumer Durables up by 2.03% and Energy was up by 1.69%, while IT down by 6.29%, TECK down by 4.30% and Healthcare was down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Eternal up by 4.17%, Trent up by 2.86%, Power Grid up by 2.67%, Maruti Suzuki up by 1.96% and NTPC up by 1.85%. On the flip side, Infosys down by 8.25%, TCS down by 6.78%, Tech Mahindra down by 5.92%, HCL Tech down by 5.29% and ITC down by 1.11% were the top losers.

Meanwhile, January 2026 saw a notable improvement in India’s services sector growth, led by quicker expansions in new business intakes and output.  According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.5 in January from 58.0 in December. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 58.4 in January as against 57.8 in December.

The survey report stated that the main source of new business gains was the domestic market, but international orders nevertheless rose solidly. Moreover, the pace of expansion was the most pronounced in three months. Rising intakes of new work prompted service providers in India to resume hiring in January. The pace of job creation was only marginal, however, as the vast majority of firms opted to leave workforce numbers unchanged amid sufficient resources for current requirements.

On the inflation front, input costs increased at the fastest pace since last September, albeit one that was moderate and below the long-run series trend. Output charges also rose to a greater extent during January, with the rate of inflation at a three-month high. Service providers sought to better balance cost rises and profitability. The overall increase was nevertheless mild in the context of historical data.

Further, cost pressures were by far most intense in the Consumer Services category, while the strongest increase in output charges was noted in the Finance & Insurance sector. Meanwhile, business confidence rose to a three-month high at the start of the final fiscal quarter. Among the factors supporting optimistic forecasts were efficiency gains, marketing efforts and new client wins.

The CNX Nifty is currently trading at 25748.00, up by 20.45 points or 0.08% after trading in a range of 25563.95 and 25801.80. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Eternal up by 4.50%, ONGC up by 4.03%, Trent up by 2.96%, Power Grid up by 2.37% and NTPC up by 1.99%. On the flip side, Infosys down by 8.32%, TCS down by 6.76%, Tech Mahindra down by 5.91%, HCL Tech down by 5.35% and Wipro down by 4.45% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 94.45 points or 0.29% to 32,289.81, Hang Seng advanced 87.23 points or 0.33% to 26,922.00, KOSPI increased 83.02 points or 1.55% to 5,371.10, Shanghai Composite strengthened 34.46 points or 0.84% to 4,102.20 and Straits Times was up by 6.69 points or 0.14% to 4,950.78. On the flip side, Jakarta Composite plunged 24.86 points or 0.31% to 8,097.74 and Nikkei 225 was down by 335.66 points or 0.62% to 54,385.00.