Mumbai– Indian equity markets closed lower on Thursday after a day marked by volatility and cautious trading, as late-session selling erased early gains. Investor sentiment remained tentative amid anticipation of a potential trade agreement between India and the United States.
The Sensex rose to an intraday high of 83,850 in early trade but ended the day down 170.22 points, or 0.2 percent, at 83,239.7. The Nifty followed a similar trajectory, slipping 48.1 points or 0.19 percent to close at 25,405.3.
According to Ajit Mishra of Religare Broking Limited, markets continued their consolidation phase, with volatility heightened by the weekly derivatives expiry. The Nifty moved sharply in both directions during the session but stayed within Wednesday’s trading range.
Mishra noted that despite the decline, the broader trend remains bullish as long as the Nifty holds above the 25,200 mark. On the upside, resistance is expected in the 25,650 to 25,750 zone.
Among the Sensex laggards were Kotak Mahindra Bank, Bajaj Finserv, Bajaj Finance, Trent, and State Bank of India. Gains in Maruti Suzuki India, Infosys, NTPC, Asian Paints, Hindustan Unilever, and Eternal helped cushion the index from a steeper fall.
Broader market indices showed mixed performance. The Nifty Midcap100 ended flat with a slight positive bias, while the Nifty Smallcap100 index declined 0.26 percent.
Sectorally, the Nifty PSU Bank index was the biggest loser, falling 0.89 percent amid selling pressure in stocks such as Punjab National Bank, Union Bank of India, UCO Bank, and Central Bank of India. Other sectors like metals, real estate, banking, and financial services also closed in the red.
In contrast, select sectors including media, auto, pharma, healthcare, consumer durables, oil and gas, and FMCG saw buying interest and ended the day in positive territory.
Market analysts said investors are likely to remain cautious in the near term, closely monitoring global trade developments, foreign institutional investor (FII) activity, and key economic indicators.
Meanwhile, the Indian rupee strengthened to its highest level in a month, supported by expectations of increased foreign capital inflows and optimism surrounding a potential trade deal with the U.S.
Dilip Parmar of HDFC Securities stated that the USD/INR exchange rate is expected to find short-term support at 84.95 and face resistance near 85.70. (Source: IANS)
