Equity markets concluded Thursday’s monthly expiry session with a flat note as gains in financials were counterbalanced by losses in the automobile and real estate sectors. The BSE Sensex edged up by 10.31 points to close at 74,612.43, while the Nifty 50 dipped marginally by 2.50 points to 22,545.05, extending its losing streak to a seventh consecutive session.
Financial stocks emerged as the top performers after the Reserve Bank of India relaxed lending norms for microfinance institutions and NBFCs. Shriram Finance led the gainers on NSE, surging 5.18 percent with a trading volume of 1.7 crore shares. Bajaj Finserv and Bajaj Finance followed with gains of 2.40 percent and 2.03 percent, respectively. Hindalco advanced 1.78 percent, while Sun Pharma rose 1.76 percent.
On the flip side, UltraCemCo witnessed the most significant decline, dropping 4.69 percent after announcing its plans to enter the wires and cables market with a ₹1,800 crore investment. Trent fell 3.63 percent, Bajaj Auto declined 2.65 percent, while Tata Motors and Mahindra & Mahindra both shed over 2 percent.
Market breadth remained largely negative, with 3,030 stocks declining compared to just 943 advances on the BSE. Of note, 466 stocks hit their 52-week lows, while only 52 touched 52-week highs, indicating the overall weakness in the broader market.
“Market opened gap up after the trading holiday but a weak undertone persists in the market, with every rally being sold into,” said Bhavik Patel, Sr. Research Analyst at Tradebulls Securities. “While the Nifty index remained under pressure, some relief was seen in banking stocks, mainly due to the expectation of one more rate cut from RBI in the next meeting.”
The broader market experienced steeper losses, with the Nifty Midcap Select and Nifty Next 50 indices declining by 0.89 percent and 0.92 percent, respectively. Sector performance was mixed, with Nifty Bank and Financial Services gaining 0.28 percent and 0.60 percent, respectively, while the auto, realty, and media sectors saw significant selling pressure.
Rupee Unchanged
The Indian rupee closed unchanged at 87.17 against the US dollar after experiencing high volatility during the session. “Rupee traded flat near 87.17 after experiencing high volatility, weakening to 87.54 before recovering to 87.10,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The session ended on a neutral note as the dollar index remained range-bound, and FII sell-off was countered by DII inflows.”
Experts’ Take
Technical analysts pointed out the indecision in the market. “The past two sessions reflect indecision, likely due to oversold conditions. However, rotational selling across key sectors is not only limiting the rebound but also gradually dragging the index lower,” noted Ajit Mishra, SVP of Research at Religare Broking Ltd.
Rupak De, Senior Technical Analyst at LKP Securities, added, “Nifty remained range-bound during the day before closing flat. Sellers continued to dominate the market at higher levels. On the lower end, 22,500 continues to act as support. We expect Nifty to decline towards 22,200 and lower if it falls below 22,500.”
Market volatility decreased, with the India VIX declining by 2.97 percent to 13.31. However, the narrow trading range of just 105 points was the smallest observed in more than ten sessions, indicating a compression in volatility.
Donald Trump’s tariff announcements continued to dampen investor sentiment. “The global market swayed negatively, and domestic broader market sentiment remained weak due to fresh uncertainty surrounding US tariff policies,” said Vinod Nair, Head of Research at Geojit Financial Services.
Investors are now turning their focus to upcoming economic data releases. “The market will now focus on US Core PCE on Friday to gauge the US’s inflation progress, which will provide further triggers to global markets,” Patel explained. Domestically, traders await India’s Q3 GDP estimates, scheduled for release on Friday.
Gold Prices
Gold prices weakened, with MCX gold declining by ₹800 to touch ₹85,000. “Gold prices traded weak as a sell-off was witnessed below $2,915, pushing prices toward $2,880 in Comex,” said Trivedi.
The Nifty registered its worst monthly sliding streak in five months, the longest since 1996, according to Satish Chandra Aluri of Lemonn Markets. Despite this prolonged weakness, some analysts note the market’s oversold conditions. “The daily and weekly oscillators in the index are placed at an extreme oversold territory. Hence, we expect the index to consolidate in the range of 22,400-23,000 in the coming sessions,” stated Bajaj Broking’s market commentary.
