Benchmark indices gave up most of their intraday gains on Thursday, with the Sensex erasing an early surge of over 600 points before finishing slightly higher, as investors chose to book profits after a recent strong rally.
The S&P BSE Sensex closed near 77,100, up about 105 points (0.14%), while the NSE Nifty50 ended at 24,056, rising 34.35 points or 0.14%. Earlier in the session, the Sensex had touched an intraday high of 77,803.18 before slipping back sharply.
Despite the late decline, markets extended their winning streak, supported by easing crude oil prices, a stronger rupee, and improving macroeconomic indicators.
Why markets lost momentum
The session saw two opposing forces at play. Markets opened strongly after Brent crude slipped below $73 per barrel, boosting hopes of lower inflation, stronger corporate earnings, and a better current account position for India.
However, gains faded later as investors opted to lock in profits following a multi-session rally of around 4% in benchmark indices.
The rupee also strengthened 0.3% to 94.3775 against the US dollar, helped by softer oil prices and easing external pressure.
Auto stocks lead gains
Auto shares stood out as the top performers. The Nifty Auto index rose 2.25%, driven by strong buying.
Maruti Suzuki climbed 3.69%, Mahindra & Mahindra gained 3.82%, and IndiGo surged 4.73%, among the top gainers.
Financial stocks remained stable, with modest gains across major banks including ICICI Bank, SBI, HDFC Bank, and Kotak Mahindra Bank.
IT and metal stocks drag
Technology and metal sectors weighed on the indices. The Nifty IT index fell 0.86%, with declines in Tech Mahindra, Infosys, HCLTech, and TCS.
Metal stocks also weakened, pulling the Nifty Metal index down 1.37%.
Among Sensex losers were Power Grid, Tech Mahindra, BEL, Infosys, and Bharti Airtel.
Broader markets under pressure
Midcap and smallcap indices ended in the red, indicating broader market weakness despite resilience in large caps. Volatility, however, stayed low as India VIX dropped 2.50%.
Expert view
Analysts said the market remains in a consolidation phase with a positive undertone. The Nifty holding above the 24,000 level suggests a stable short-term trend, with key support placed around 23,950–23,850 and resistance near 24,100–24,150.
For the Sensex, support lies between 76,700–76,900, while resistance is seen around 77,300–77,500. A breakout above this range could strengthen bullish momentum further.
Overall, experts continue to favour a buy-on-dips strategy with careful risk management.
