India’s broader market indices outperformed the main benchmarks on Thursday, with the Nifty Midcap 100 achieving a new all-time high despite the frontline indices closing virtually unchanged. This fluctuation was observed amid easing crude oil prices and cautious sentiment leading up to essential global economic data releases.
“The positive undertone was primarily driven by a sharp cooling in crude oil prices amid optimism surrounding a potential US–Iran peace agreement,” remarked Ajit Mishra, Senior Vice President of Research at Religare Broking. “The noticeable traction across sectors is offering ample trading opportunities.”
The Sensex fell by 114 points, or 0.15%, wrapping up at 77,844.52, while the Nifty decreased by 4.30 points, or 0.02%, to finish at 24,326.65. The trading session was marked by volatility, with the Nifty reaching an intraday high of 24,482.10 before profit-taking brought it down, influenced in part by weekly Sensex expiry-driven positioning.
While the benchmark indices showed little movement, significant activity was seen in the broader market. The Nifty Midcap 100 surged past the 62,000 milestone for the first time, with an intraday peak of 62,094, and closed 1.10% higher. The Smallcap index also rose by 0.87%. This midcap rally was primarily attributed to better earnings growth from midcap companies compared to large caps, coupled with strong domestic retail inflows and a healthy sectoral mix that included pharmaceuticals, capital goods, financials, and industrials. The market breadth remained firmly positive, with advancers significantly outnumbering decliners.
Sector-wise, stocks in Auto, Defence, Realty, and Metals sectors saw increased buying interest, with the Defence index leading the gains at 3.30%. Conversely, sectors like FMCG, IT, PSU Banks, and Consumer Durables experienced selling pressure.
In corporate news, Bajaj Auto announced a share buyback of up to ₹5,632 crore at ₹12,000 per share, following a 34% year-on-year increase in Q4 profit and a 31.8% rise in revenue. Additionally, the Reserve Bank of India approved Kotak Mahindra Bank’s proposal to raise its stake to 9.99% each in AU Small Finance Bank and Federal Bank, marking a significant development in the banking sector.
On the currency front, the rupee appreciated for the second consecutive session against the dollar, buoyed by short covering and dollar inflows from domestic banks. Declining crude prices, alongside hopes for a diplomatic resolution between the US and Iran, further supported the rupee’s strength. The spot USD-INR faced immediate support at 93.87 and resistance at 94.60.
In commodities, Brent crude prices extended losses to hover around $98 per barrel, while WTI approached $92 per barrel, both down by roughly 3% on the day. Reports of potential agreements to ease the US naval blockade in exchange for the gradual reopening of the Strait of Hormuz contributed to this decline. Brent crude is now nearly $28 less than last week’s peak, with the war premium diminishing quickly. COMEX gold rose above $4,760 per ounce, and silver surpassed $80 per ounce, marking gains for the third consecutive session. This rally in precious metals was supported by easing inflation expectations and a weaker dollar, with softer-than-expected US ADP payroll data boosting hopes for an interest rate cut.
Looking ahead, the markets will closely monitor Friday’s official US jobs report. A confirmation of a cooling labor market could bolster expectations for a Federal Reserve rate cut and influence global risk sentiment for the upcoming week. Domestically, the flow of Q4 earnings, the trajectory of crude oil prices, and any formal confirmations regarding the agreement on the Strait of Hormuz will be key factors guiding investor decisions.
Published on May 7, 2026.
