On Thursday, the Indian stock markets saw a slight uptick as investors approached the upcoming Union Budget and ongoing corporate earnings season with caution. The Sensex closed 0.15 per cent higher at 76,520.38, while the Nifty 50 ended the day up 0.22 per cent at 23,205.35. Market sentiment was subdued, with selective buying observed, particularly in the IT and cement sectors.
UltraTech Cement was the top gainer, rising 6.67 per cent after surpassing market expectations in its financial results. Other top performers included Grasim Industries, Wipro, Shriram Finance, and Sun Pharma. On the other hand, BPCL led the losers, followed by Kotak Bank, HCL Tech, State Bank of India, and Reliance.
The IT sector stood out, with the Nifty IT index climbing over 2 per cent driven by strong third-quarter earnings and relief from protectionist tariffs. Analysts highlighted the recovery in IT majors as a key driver of the index’s rebound.
Despite the positive market movement, concerns lingered about foreign fund outflows due to the rupee’s decline against the dollar. The upcoming Budget was seen as a crucial factor affecting market sentiment and the rupee’s trajectory.
The Nifty Midcap 100 and Nifty Smallcap 100 indices showed resilience, with the market displaying more advances than declines. Technical analysts cautiously predicted a continuation of the current pullback formation as long as the Nifty remained above 23,100.
Investors are now turning their attention to the upcoming US Federal Reserve policy meeting and its potential impact on the market. The overall market trend showed a declining momentum year-to-date, prompting traders to await the 2025 Budget announcement for further clarity.
Mixed signals emerged from the ongoing earnings season, with IT companies optimistic about IT spending recovery while FMCG companies face challenges in domestic consumption. Investors are advised to maintain balanced positions and closely monitor the Budget presentation and corporate results for future market direction.
