Dalal Street pares gains: Sensex ends flat after climbing over 600 points
Early optimism driven by lower crude oil prices and a stronger rupee faded as investors booked profits, though benchmark indices still managed to end in positive territory.
Benchmark indices surrendered most of their intraday gains on Thursday, with the Sensex erasing a rally of over 600 points before ending marginally higher, as investors booked profits after a strong recent run-up.
The S&P BSE Sensex ended at around 77,100, up nearly 105 points or 0.14%, while the NSE Nifty50 settled at 24,056.00, gaining 34.35 points or 0.14%. Earlier in the day, the Sensex had climbed as much as 602 points to hit an intraday high of 77,803.18 before giving up most of its gains.
Despite the late pullback, the benchmarks managed to extend their winning streak as investors continued to draw comfort from easing crude oil prices, a stronger rupee and improving macroeconomic conditions.
WHY DID MARKETS GIVE UP THEIR GAINS?
The day's trade reflected two contrasting themes.
Markets opened sharply higher after Brent crude fell below $73 per barrel, raising hopes of lower inflation, stronger corporate earnings and an improvement in India's current account deficit. However, as the session progressed, traders locked in profits following the recent rally that has seen benchmark indices gain around 4% over the past several sessions.
The recovery in the rupee also supported sentiment. The Indian currency appreciated 0.3% to 94.3775 against the US dollar, reflecting easing pressure on external balances as oil prices remained subdued.
AUTO STOCKS REMAIN THE STAR PERFORMERS
Even as the headline indices cooled off, automobile stocks continued to attract strong buying.
The Nifty Auto index surged 2.25%, making it the top-performing sector of the day.
Maruti Suzuki jumped 3.69%, Mahindra & Mahindra gained 3.82% and IndiGo rallied 4.73%, emerging among the biggest gainers on the Sensex.
Financial stocks also remained resilient. Nifty Financial Services edged up 0.10%, while Nifty Private Bank gained 0.16%.
ICICI Bank rose 1.01%, State Bank of India gained 1.01%, HDFC Bank advanced 0.37% and Kotak Mahindra Bank climbed 0.74%.
IT, METAL STOCKS WEIGH ON SENTIMENT
Technology and metal stocks capped the market's upside.
The Nifty IT index slipped 0.86%, with Tech Mahindra falling 1.68%, Infosys losing 1.42%, HCLTech declining 1.07% and TCS shedding 0.62%.
Metal stocks also remained under pressure, dragging the Nifty Metal index down 1.37%.
Among the top Sensex losers were Power Grid (-2.36%), Tech Mahindra (-1.68%), BEL (-1.68%), Infosys (-1.42%) and Bharti Airtel (-1.40%).
BROADER MARKETS UNDERPERFORM
Unlike the benchmark indices, broader markets closed in the red.
The Nifty Midcap 50 fell 0.58%, while the Nifty Midcap 100 declined 0.55%. The Nifty Smallcap 100 also slipped 0.47%, suggesting that selling pressure was more pronounced outside the large-cap space.
India VIX declined 2.50%, indicating that market volatility remained contained despite the intraday reversal.
WHAT ARE EXPERTS SAYING?
Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said the market continued to consolidate with a positive bias despite remaining range-bound through most of the session.
He said the Nifty managed to hold above the crucial 24,000 mark, indicating that the short-term trend remains constructive. Immediate support lies in the 24,000-23,950 zone, followed by a stronger support area near 23,850. On the upside, resistance is seen between 24,100 and 24,150, with a sustained breakout potentially opening the door towards 24,250.
For the Sensex, he said support is placed between 76,900 and 76,700, while resistance is seen around 77,300-77,500. A decisive move above this range could strengthen bullish momentum further.
He added that the broader market structure remains positive and advised traders to continue adopting a buy-on-dips strategy while maintaining disciplined risk management.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark indices surrendered most of their intraday gains on Thursday, with the Sensex erasing a rally of over 600 points before ending marginally higher, as investors booked profits after a strong recent run-up.
The S&P BSE Sensex ended at around 77,100, up nearly 105 points or 0.14%, while the NSE Nifty50 settled at 24,056.00, gaining 34.35 points or 0.14%. Earlier in the day, the Sensex had climbed as much as 602 points to hit an intraday high of 77,803.18 before giving up most of its gains.
Despite the late pullback, the benchmarks managed to extend their winning streak as investors continued to draw comfort from easing crude oil prices, a stronger rupee and improving macroeconomic conditions.
WHY DID MARKETS GIVE UP THEIR GAINS?
The day's trade reflected two contrasting themes.
Markets opened sharply higher after Brent crude fell below $73 per barrel, raising hopes of lower inflation, stronger corporate earnings and an improvement in India's current account deficit. However, as the session progressed, traders locked in profits following the recent rally that has seen benchmark indices gain around 4% over the past several sessions.
The recovery in the rupee also supported sentiment. The Indian currency appreciated 0.3% to 94.3775 against the US dollar, reflecting easing pressure on external balances as oil prices remained subdued.
AUTO STOCKS REMAIN THE STAR PERFORMERS
Even as the headline indices cooled off, automobile stocks continued to attract strong buying.
The Nifty Auto index surged 2.25%, making it the top-performing sector of the day.
Maruti Suzuki jumped 3.69%, Mahindra & Mahindra gained 3.82% and IndiGo rallied 4.73%, emerging among the biggest gainers on the Sensex.
Financial stocks also remained resilient. Nifty Financial Services edged up 0.10%, while Nifty Private Bank gained 0.16%.
ICICI Bank rose 1.01%, State Bank of India gained 1.01%, HDFC Bank advanced 0.37% and Kotak Mahindra Bank climbed 0.74%.
IT, METAL STOCKS WEIGH ON SENTIMENT
Technology and metal stocks capped the market's upside.
The Nifty IT index slipped 0.86%, with Tech Mahindra falling 1.68%, Infosys losing 1.42%, HCLTech declining 1.07% and TCS shedding 0.62%.
Metal stocks also remained under pressure, dragging the Nifty Metal index down 1.37%.
Among the top Sensex losers were Power Grid (-2.36%), Tech Mahindra (-1.68%), BEL (-1.68%), Infosys (-1.42%) and Bharti Airtel (-1.40%).
BROADER MARKETS UNDERPERFORM
Unlike the benchmark indices, broader markets closed in the red.
The Nifty Midcap 50 fell 0.58%, while the Nifty Midcap 100 declined 0.55%. The Nifty Smallcap 100 also slipped 0.47%, suggesting that selling pressure was more pronounced outside the large-cap space.
India VIX declined 2.50%, indicating that market volatility remained contained despite the intraday reversal.
WHAT ARE EXPERTS SAYING?
Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said the market continued to consolidate with a positive bias despite remaining range-bound through most of the session.
He said the Nifty managed to hold above the crucial 24,000 mark, indicating that the short-term trend remains constructive. Immediate support lies in the 24,000-23,950 zone, followed by a stronger support area near 23,850. On the upside, resistance is seen between 24,100 and 24,150, with a sustained breakout potentially opening the door towards 24,250.
For the Sensex, he said support is placed between 76,900 and 76,700, while resistance is seen around 77,300-77,500. A decisive move above this range could strengthen bullish momentum further.
He added that the broader market structure remains positive and advised traders to continue adopting a buy-on-dips strategy while maintaining disciplined risk management.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
