MUMBAI — India’s benchmark equity indices gave up early gains on Thursday, with the Sensex and Nifty ending lower as selling in banking and auto stocks capped the market’s upside.
The Sensex closed at 77,988.68, down 122.56 points, or 0.16 percent, while the Nifty settled at 24,196.75, lower by 34.55 points, or 0.14 percent.
Investor sentiment remained cautious amid uncertainty surrounding upcoming negotiations between the United States and Iran, adding to the pressure on equities.
Market analysts said near-term sentiment for the Nifty remains unclear after the index failed to break decisively above the 24,300 resistance level.
“If the index moves above 24,300 with conviction in the next session, a sustained rally could unfold,” an analyst said. “Otherwise, profit booking may intensify, potentially pulling the index toward 24,000.”
Among individual stocks, HDFC Bank, Oil and Natural Gas Corporation, and HDFC Life Insurance Company were among the biggest drags on the Nifty.
Despite weakness in the headline indices, broader markets outperformed. The Nifty MidCap index rose 0.63 percent, while the Nifty SmallCap index gained 0.83 percent.
Sectorally, metal and information technology stocks led the gains, with both indices emerging as top performers. In contrast, rate-sensitive sectors such as private banks and financial services faced selling pressure, with their respective indices ending as the biggest losers.
Analysts expect markets to remain sensitive to global cues in the near term, particularly developments related to geopolitical tensions and U.S.-Iran talks, which could influence investor sentiment.
“Going forward, the sustainability of the trend will depend on earnings visibility, stability in crude oil prices, and improvement in global risk sentiment,” an analyst said.
Meanwhile, the Indian rupee strengthened after four consecutive sessions of weakness, supported by a return of foreign institutional investors amid improving risk appetite.
“In the near term, the USD-INR spot rate is expected to consolidate in the range of 92.80 to 93.50,” an analyst said. (Source: IANS)
