Benchmark stock market indices ended Thursday’s trading session nearly unchanged, erasing early gains as broader market sentiment remained weak despite a rally in select banking and financial stocks. The S&P BSE Sensex inched up by 10.31 points, settling at 74,612.43, while the NSE Nifty50 closed marginally lower, losing 2.50 points to finish at 22,545.05.
Market experts attributed the lackluster movement to persistent caution ahead of key economic data releases, including GDP figures from both India and the US. Investors remained watchful amid global uncertainties, particularly concerning US trade policies and the Federal Reserve’s stance on interest rates.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, commented that markets traded in a subdued manner on the monthly expiry day, marking the second straight session of negligible movement. Despite an initial uptick, Nifty quickly lost momentum and remained range-bound for most of the session. A mixed sectoral trend continued, with strength observed in banking, financial services, and metal stocks, while realty and automobile stocks faced headwinds. The broader market witnessed significant selling pressure, with the Nifty Smallcap100 plunging 1.83% and the Nifty Midcap100 shedding 1.43%, reflecting investor skepticism toward mid- and small-cap stocks.
Among the session’s standout gainers, Shriram Finance emerged as the top performer, soaring 5.18% on strong investor interest. Bajaj Finserv followed with a robust gain of 2.40%, while Bajaj Finance advanced 2.03%. Hindalco Industries rebounded, climbing 1.78%, and Sun Pharmaceutical Industries registered a 1.76% increase, rounding out the list of top gainers.
On the flip side, UltraTech Cement bore the biggest brunt, declining sharply by 4.69%, as selling pressure intensified. Trent also struggled, witnessing a steep drop of 3.63%, while Bajaj Auto shed 2.65%. The automobile sector continued to face challenges, with Tata Motors sliding by 2.09% and Mahindra & Mahindra (M&M) slipping by 2.08%, weighed down by concerns over demand slowdown and global supply chain issues.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that weak global market trends and heightened uncertainty surrounding potential US tariff policies added to the cautious sentiment among investors. He further noted that amid lingering trade tensions, market participants remained focused on upcoming GDP reports, seeking clearer indications regarding economic growth and potential monetary policy shifts.
The overall market mood was bearish, with broader indices experiencing a widespread selloff. All three major indices remained under pressure, failing to sustain any meaningful recovery. Analysts observed a pattern of rotational selling across key sectors, which limited any chances of a strong rebound. The midcap and smallcap segments, in particular, struggled to regain investor confidence, with many stocks witnessing sharp declines.
Mishra further explained that the past two trading sessions reflected a phase of market indecision, possibly due to oversold conditions. However, he cautioned that rotational selling across major sectors was preventing a substantial recovery and instead gradually dragging the index lower. As a new derivatives series begins, he advised traders to utilize any rebounds as an opportunity to initiate short positions in the index until a clear trend reversal is established. While the overall market may be struggling, Mishra highlighted that selective stock-specific opportunities continue to emerge, and traders should align their strategies accordingly to navigate the current volatility.
