Weekly Market Recap: Nifty Volatility, RBI Rate Cut and Q3 FY25 Earnings Week Ended Feb 07

The NSE Nifty 50 and BSE Sensex experienced significant volatility throughout the week ending Friday, February 7, 2025.

The NSE Nifty 50 remained volatile during the week ending Feb 7, 2025. On Feb 3, it opened at 23,319.35 and closed 0.52% lower at 23,361.05. Feb 4 saw a 1.62% gain, with Nifty hitting 23,762.75 before closing at 23,739.25. On Feb 5, selling pressure pushed Nifty down 0.18% to 23,696.30. The decline continued on Feb 6, with the index falling 0.39% to 23,603.35. On Feb 7, Nifty touched a weekly low of 23,444.40, closing at 23,589.95, down 0.06% for the day.

Key Highlights of RBI MPC Meeting

On February 7, 2025, RBI Governor Sanjay Malhotra announced a 25 basis point (bps) cut in the repo rate, reducing it from 6.5% to 6.25%—the first rate reduction after 12 consecutive policy reviews. The Standing Deposit Facility and Marginal Standing Facility were also lowered by 25 bps, while the Monetary Policy Committee (MPC) maintained a neutral policy stance.

Governor Malhotra projected GDP growth at 6.7% for FY26, with quarterly growth rates of 6.7%, 7%, and 6.5% in subsequent quarters. Inflation is expected to moderate, with CPI at 4.4% for the current quarter and 4.2% for FY26. He emphasised that while growth is recovering, it remains lower than the previous year.

Major Q3FY25 Earnings This Week

• Asian Paints‘ net profit for Q3FY25 fell by 23.3%, reaching ₹1,110 crore. The company’s net sales dropped 6.1% year-on-year to ₹8,522 crore, primarily due to sluggish demand, downtrading, and a subdued festive season.
• ITC’s Q3 FY25 results revealed a 7% drop in net profit to ₹4,935 crore, while revenue increased by 8% to ₹20,350 crore. 

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