Indian equity benchmarks, the Sensex and Nifty, concluded Thursday's trading session on a positive note, regaining ground after a significant downturn in the previous session. Despite late-day profit booking that capped some gains, the markets demonstrated resilience.
The 30-share BSE Sensex advanced 238.22 points, or 0.31 percent, to close at 76,741.82. Concurrently, the NSE Nifty50 index climbed 80.75 points, or 0.34 percent, settling at 23,962.80. Broader markets outperformed the frontline indices, with the BSE midcap and smallcap indices rising 1.38 percent and 1.80 percent, respectively, signaling improved market breadth and renewed buying interest.
Sectoral Performance and Key Contributors
Sectoral participation remained largely positive, driven by strong performances in realty, banking, and pharmaceutical stocks. Conversely, auto and IT sectors experienced a more subdued trading day. Major contributors to the Sensex's upward movement included Bharti Airtel Ltd, HDFC Bank Ltd, Sun Pharmaceutical Industries Ltd, Kotak Mahindra Bank Ltd, Reliance Industries Ltd (RIL), InterGlobe Aviation Ltd, Bajaj Finserv Ltd, and UltraTech Cement Ltd.
Expert Insights on Market Outlook
Ankur Punj, MD & Business Head at Equirus Wealth, noted that markets ended higher following Wednesday's slump, though gains were muted due to profit-taking in the closing hours. He advised traders to monitor volatility in global crude oil prices and local currency movements, especially after the US decision to end the ceasefire with Iran.
Ajit Mishra, SVP, Research at Religare Broking, also highlighted the late-session profit booking. Mishra explained that the recovery was primarily supported by easing concerns over the Middle East, as indications of Iran's willingness to resume negotiations helped cool crude oil prices from recent highs. Continued foreign institutional buying and a decline in the India VIX further bolstered sentiment. However, lingering geopolitical uncertainty and caution ahead of the earnings season prevented aggressive bullishness.
"Given the prevailing market setup, we recommend maintaining a cautious stance on the index and focusing on relatively stronger sectors such as pharma, realty, and select banking names for long positions, while adhering to disciplined risk management," Mishra advised.
Nifty Technical Outlook
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, commented that the underlying short-term trend for the Nifty50 remains choppy with a weak bias. However, he indicated a potential bounce back from the 23,800 support level in the short term. Shetti added that a sustainable upside above 24,200-24,300 levels would likely trigger more short covering in the market.