Benchmark indices started the day flat on Thursday as traders remained cautious ahead of the monthly futures and options (F&O) expiry. Ongoing concerns about potential US tariffs and continued foreign institutional investor (FII) selling were weighing on market sentiment. As of 9.50 AM, the Sensex opened at 74,706.60 and is currently trading at 74,608.77, up by 6.65 points or 0.01 per cent. The Nifty opened at 22,568.95 and is now at 22,553.45, gaining 5.90 points or 0.03 per cent.
Market participants were hesitant due to the mid-week holiday and the approaching monthly contract expiry, resulting in subdued trading activity. According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, “Worries over tariffs will continue to weigh on domestic stocks with plenty of uncertainties surrounding the timing and the size, while relentless FII selling leaves investors worrying as they fear the brutal sell-off is likely to worsen.”
The top gainers on the NSE included Shriram Finance, Bajaj Finserv, JSW Steel, IndusInd Bank, and Bajaj Finance. On the other hand, UltraTech Cement led the losers, along with Bajaj Auto, Hero MotoCorp, Trent, and ONGC also experiencing declines.
Technical analysts suggest a non-directional market pattern as traders await a clear breakout. Shrikant Chouhan, Head of Equity Research at Kotak Securities, mentioned that the market is witnessing non-directional activity, possibly as traders are awaiting a breakout on either side.
Several positive factors provided some support to the market. The US Dollar Index fell to a two-month low below 106, while oil prices dropped to a three-month low below $73 per barrel. Reports of potential peace talks between Russia and Ukraine also boosted investor sentiment.
Despite these positive factors, concerns remained about US President Donald Trump’s tariff threats. FII selling continued to exert pressure on the market. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the significant selling by FIIs in the cash market, despite DIIs compensating for it through buying.
Looking ahead, the Nifty-50 closed in an inside range of the previous day’s candle, awaiting movement in either direction. For Bank Nifty, analysts noted it opened higher but failed to sustain near the previous day’s high and witnessed selling pressure.
As the market navigates through expiry day volatility, sector-specific movements are expected. Pharma stocks could see positive movement following USFDA approvals, while oil marketing companies might benefit from falling crude prices. Tech stocks remain in focus after Nvidia’s strong quarterly results.
