Benchmark indices ended mixed on Thursday as buying in Tata group stocks, banks and other select large-caps helped the Nifty recover, while the Sensex remained almost flat.
Investors continued to weigh the US Federal Reserve’s hawkish stance, elevated prices and a crowded primary market led by the National Stock Exchange’s IPO.
The BSE opened at 74,182.62 and closed at 74,314.59, down 21.86 points or 0.03%. The Nifty 50 opened at 23,195.25 and ended at 23,270.60, gaining 53 points or 0.23%.
The benchmarks had risen as much as 0.6% and 0.5%, respectively, during the session before giving up some gains towards the close. The Nifty has now risen for two consecutive sessions after falling around 6% over the previous five weeks.
Tata group stocks were among the key highlights of Thursday’s session. Tata Steel was the top Sensex gainer, rising 2.82% to Rs 188.
Reuters data also showed gains of between 2.3% and 5.5% across several major Tata group companies, including Tata Motors PV, Tata Motors, Tata Steel and Tata Investment.
The buying in Tata stocks came after the board of Tata Sons approved a fresh five-year term for N Chandrasekaran as executive chairman.
Apart from Tata Steel, BEL rose 2.38%, IndiGo gained 2.32%, Eternal advanced 2.24% and Maruti climbed 1.64%. Bajaj Finserv rose 1.24%, Cement gained 1.03%, Trent advanced 0.86% and Bajaj Finance rose 0.74%.
Asian Paints gained 1.45%, NTPC rose 0.72%, Sun Pharma advanced 0.67% and ITC gained 0.62%.
On the losing side, HDFC Bank fell 1.30%, Titan declined 1.14%, ICICI Bank dropped 1.03%, SBI fell 0.67% and Bharti Airtel declined 0.52%.
Infosys fell 0.43%, Hindustan Unilever declined 0.38% and Reliance Industries slipped 0.05%.
Twelve of the 16 major sectoral indices ended higher.
Nifty Auto was among the stronger performers, rising 0.99%, while Nifty Pharma gained 1.66%. Nifty Realty advanced 1.45%, Nifty Healthcare rose 1.56% and Nifty MidSmall Healthcare gained 1.62%.
Nifty Financial Services Ex-Bank climbed 1.14%, Nifty Metal rose 0.94%, Nifty Media gained 1.19% and Nifty Chemicals advanced 0.74%.
Nifty MidSmall Financial Services rose 0.48%, while Nifty MidSmall IT & Telecom gained 0.48%.
On the other hand, Nifty Private Bank fell 0.42%, Nifty PSU Bank declined 0.16% and Nifty Oil & Gas slipped 0.14%. Nifty FMCG was almost flat, rising 0.03%.
The broader market outperformed the benchmark indices. Nifty 100 rose 0.39%, Nifty 200 gained 0.50% and Nifty 500 advanced 0.54%.
Nifty Midcap 50 rose 0.96%, while Nifty Midcap 100 gained 0.92%. Nifty Smallcap 100 climbed 0.76%.
India VIX fell sharply by 7.82% to 12.14, indicating a decline in market volatility.
Vinod Nair, Head of Research, Geojit Investments Limited, said value buying following the recent correction supported the domestic market.
“The anticipated Fed rate hike, along with easing bond yields, offered temporary support to global equities and reinforced expectations of gradually moderating inflation. Despite this, domestic markets remained volatile but ended higher, supported by value buying following the recent correction,” Nair said.
He added that mid- and small-cap stocks continued to outperform as investors favoured companies with strong earnings visibility, solid order books and healthy balance sheets, particularly in capital goods, industrial, defence, power and healthcare.
The Rs 2.3-billion NSE IPO opened for bidding on Thursday, becoming the country’s third-largest IPO and the fifth active offering in the primary market.
Investors subscribed to around 36% of the portion on offer by 3:30 pm, according to the information provided.
The NSE had allocated shares worth Rs 6,746 crore to anchor investors on Wednesday at Rs 1,785 per share, the upper end of its IPO price band. The anchor allocation included Norway’s and Abu Dhabi’s sovereign wealth funds.
The crowded IPO market remains a concern for secondary-market liquidity as investors continue to allocate money to new issues.
The US Federal Reserve’s rate hike and hawkish commentary remained important factors for investors. The Fed raised interest rates by 25 basis points, while its projections indicated the possibility of another hike depending on the economic outlook.
Crude oil prices also remained elevated amid continuing geopolitical concerns. Brent crude was trading at $103.90 a barrel, down 1.82%, while WTI crude was at $101, down 1.40%.
Ankita Pathak, head of global investments at Ionic Asset, said another Fed rate hike remains possible in December 2026 depending on the evolving macroeconomic environment, particularly crude oil prices.
“India may have to consider a hike at its next policy meeting after the Fed decision,” Pathak said.
The market has recovered over the last two sessions after a sharp five-week decline, but the broader trend remains sensitive to global interest rates, crude oil prices, foreign flows and the heavy IPO pipeline.
Nair said investor sentiment is likely to remain cautious amid concerns over a possible broader rate-tightening cycle driven by Middle East tensions and the risk of US tariffs.
For now, Tata stocks, the NSE IPO, crude oil prices and global bond yields will remain among the key factors to watch as investors assess whether the recent rebound can continue.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)