Indian equity benchmarks concluded Thursday's trading session with modest gains, though early rallies were significantly curtailed by widespread profit booking. The 30-share BSE Sensex advanced 109.25 points, or 0.14%, to settle at 77,100.47. Similarly, the NSE Nifty50 index saw a gain of 34.35 points, or 0.14%, closing at 24,056.
During the day, both indices had achieved higher intraday peaks, with the Sensex hitting 77,803.18 and the Nifty touching 24,261.60. However, they subsequently shed 702.71 points and 205.6 points, respectively, from these highs, indicating strong selling pressure. This marked the second consecutive session of gains for the holiday-truncated week.
Broader Markets Underperform
In contrast to the frontline indices, broader markets experienced declines. The Nifty Midcap100 index fell by 0.55%, and the Nifty Smallcap100 slipped 0.47%, both ending the day in negative territory.
Key Contributors to Sensex Rise
Several heavyweights contributed to the Sensex's upward movement. Notable gainers included Mahindra & Mahindra Ltd (M&M), ICICI Bank Ltd, Maruti Suzuki India Ltd, Interglobe Aviation Ltd (parent company of IndiGo), HDFC Bank, State Bank of India (SBI), Reliance Industries Ltd (RIL), Larsen & Toubro Ltd (L&T), and Kotak Mahindra Bank Ltd.
Analyst Insights on Market Performance
Vinod Nair, Head of Research at Geojit Investments, commented on the day's trading: "The market concluded the day almost flat, as early intraday gains were offset by profit booking. While a sharp decline in crude oil prices supported the rupee and provided some cushion, it was insufficient to sustain upward momentum." He further noted the strong performance of auto stocks driven by softer metal prices, improved supply chains, and rising retail demand. Nair also highlighted that continued Foreign Institutional Investor (FII) outflows could limit upside potential, with a muted Q1 earnings outlook and an uneven monsoon being factors to monitor in the near term.
Ankur Punj, MD & Business Head at Equirus Wealth, echoed similar sentiments, stating that the market ended with tepid gains as investors trimmed their equity positions ahead of an extended holiday. "As domestic benchmarks will be shut on Friday due to Muharram, investors booked profits in late trades. With the global macroeconomy still clouded by geopolitical tensions and volatile crude prices, selective buying could be the preferred route for investors," Punj added.
Nifty Outlook for the Near Term
Looking ahead, Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, provided technical levels for the Nifty50. He identified immediate resistance in the 24,200-24,250 zone. A sustainable move above this could see the Nifty extend its pullback towards 24,400, followed by 24,600 in the short term. On the downside, immediate support is placed in the 23,900-23,850 range.