Index Performance and Market Breadth

The large-cap index, representing the top 100 stocks by market capitalisation on the BSE, advanced by 1.04% on 2 Feb 2026, underscoring a broad-based recovery after recent volatility. Market breadth was notably positive, with 75 stocks advancing against 25 decliners, resulting in a strong advance-decline ratio of 3.0x. This breadth indicates healthy participation across sectors, although the performance dispersion among individual stocks remains significant.

Top and Bottom Performers

Among the large-cap constituents, Power Grid Corporation emerged as the best performer, delivering a return of 7.61%. The stock’s strong showing was driven by favourable regulatory developments and steady operational metrics, which have bolstered investor confidence in its defensive infrastructure play. Conversely, PB Fintech was the laggard in the segment, declining by 3.44%, weighed down by concerns over near-term earnings growth and competitive pressures in the fintech space.

Sectoral Trends: Defensive Versus Cyclical

The current market environment has seen a divergence between defensive and cyclical stocks within the large-cap universe. Defensive names such as Nestle India and HCL Technologies have exhibited bullish to mildly bullish trends, supported by stable earnings outlooks and resilient demand. Nestle India, benefiting from steady consumer staples demand, has maintained its upward trajectory, while HCL Technologies continues to attract interest amid sustained IT services growth.

On the other hand, cyclical stocks like Wipro and Coforge have shown sideways to mildly bullish movements, reflecting cautious investor sentiment amid global economic uncertainties. Wipro’s performance has been steady but lacks strong directional momentum, while Coforge has recently seen a technical upgrade from Hold to Buy, signalling potential for upside as its order book and client engagements improve.

Upcoming Earnings and Market Implications

Investor focus is now shifting towards a series of key earnings announcements scheduled in early February. Notable large-cap companies set to declare results on 3 Feb 2026 include Adani Enterprises, Pidilite Industries, Adani Ports, Varun Beverages, and Bajaj Finance. These results will be closely scrutinised for guidance on demand trends, margin pressures, and capital allocation strategies, which could influence market direction in the near term.

Technical Upgrades and Market Sentiment

Technical analysts have recently upgraded Coforge from a Hold to a Buy rating, reflecting improved momentum and positive chart patterns. This upgrade aligns with the company’s steady revenue growth and expanding client base, which have helped it maintain a competitive edge in the IT services sector. Such technical calls often influence short-term trading activity and can act as catalysts for price appreciation.

Mixed Sentiment in Financial and Consumer Sectors

Within the financial services space, AU Small Finance Bank has exhibited a bullish to mildly bullish trend, supported by robust loan growth and improving asset quality metrics. Meanwhile, Bajaj Finance, which is due to report earnings shortly, remains under close watch given its pivotal role in consumer finance and the potential impact of macroeconomic factors on credit demand.

Consumer staples stocks like Nestle India continue to benefit from their defensive characteristics, with steady demand cushioning them against economic fluctuations. This has made them attractive to investors seeking stability amid broader market uncertainties.

Outlook and Investor Considerations

Looking ahead, the large-cap segment is expected to navigate a complex interplay of domestic economic data, global cues, and corporate earnings. Defensive sectors are likely to retain favour as investors seek to mitigate risks, while cyclical stocks may offer selective opportunities as economic recovery narratives gain traction. The upcoming earnings season will be critical in providing clarity on corporate performance and guiding market direction.

Conclusion

The large-cap segment’s performance on 2 Feb 2026 highlights a market balancing act between defensive resilience and cyclical caution. With a solid advance-decline ratio and selective stock upgrades, investors are advised to maintain a diversified approach, focusing on quality names with strong fundamentals and favourable technical setups. The forthcoming earnings announcements will be pivotal in shaping sentiment and providing fresh impetus to the market’s next phase of movement.

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