Equity markets closed lower on Thursday despite positive economic data, with the Sensex slipping 0.27% to close below the 74,000 mark at 73,828.91. Similarly, the Nifty 50 declined by 0.33% to 22,397.20.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the shortened trading week and sell-off in the US market were causing a hiccup globally, although India showed resilience with a narrow negative trend.
Although domestic economic data showed retail inflation easing below the RBI’s target range for the first time in six months and industrial output surpassing expectations in January, market momentum was unable to hold throughout the day.
Sector-wise, PSU Banks and Banking sectors saw gains of 0.01-0.43%, while Realty, Media, Auto, and Metal sectors experienced declines ranging from 0.87-1.83%.
Among the top gainers on the NSE were Bharat Electronics Ltd (BEL), State Bank of India (SBI), Cipla, ICICI Bank, and Power Grid Corporation, while the top losers included Shriram Finance, Hero MotoCorp, Tata Motors, HDFC Life Insurance, and IndusInd Bank.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, highlighted investor nervousness regarding potential tariffs on Indian goods by the Trump administration, leading to caution with a negative bias in the market.
On the technical front, Rupak De, Senior Technical Analyst at LKP Securities, mentioned that Nifty was forming a symmetrical triangle pattern on the hourly chart, signaling a continuation pattern with a potential rally if it breaks above 22,550.
In the currency market, the Indian rupee showed strength against the US dollar, with expectations of a rate cut in the next RBI policy. Meanwhile, gold prices posted weekly gains supported by dollar weakness and softer inflation data.
Looking ahead, Ajit Mishra, SVP of Research at Religare Broking Ltd, advised traders to maintain caution amid ongoing market consolidation and suggested a stock-specific approach with careful management of position sizes.
Overall, the Nifty closed the week with a 0.75% decline, with markets closed on Friday for the Holi festival.
