India’s broader markets upstaged the benchmarks on Thursday, with the Nifty Midcap 100 scaling a fresh all-time high even as the frontline indices ended the session virtually unchanged, caught between easing crude prices and persistent caution ahead of key global data.
“The positive undertone was primarily driven by a sharp cooling in crude oil prices amid optimism surrounding a potential US–Iran peace agreement,” said Ajit Mishra, SVP Research at Religare Broking. “…the noticeable traction across sectors is offering ample trading opportunities.”
The Sensex declined 114 points, or 0.15 per cent, to settle at 77,844.52, while the Nifty slipped just 4.30 points, or 0.02 per cent, to close at 24,326.65. The session was choppy — the Nifty touched an intraday high of 24,482.10 before profit booking dragged it back, partly exacerbated by weekly Sensex expiry-driven positioning.
While benchmarks went nowhere, the real action was in the broader market. The Nifty Midcap 100 breached the 62,000 mark for the first time, hitting an intraday peak of 62,094, and closed 1.10 per cent higher. The Smallcap index advanced 0.87 per cent. Better-than-large-cap earnings growth in recent quarters, combined with domestic retail inflows and a healthy sectoral mix spanning pharma, capital goods, financials and industrials, powered the midcap surge. Market breadth remained firmly positive, with advancers comfortably outnumbering decliners.
Sectorally, Auto, Defence, Realty and Metals attracted buying interest, with the Defence index topping the charts with a 3.30 per cent gain. FMCG, IT, PSU Banks and Consumer Durables faced selling pressure.
A standout corporate development: Bajaj Auto announced a share buyback of up to ₹5,632 crore at ₹12,000 per share, after posting a 34 per cent year-on-year jump in Q4 profit and a 31.8 per cent rise in revenue. Separately, the RBI approved Kotak Mahindra Bank’s proposal to raise its stake up to 9.99 per cent each in AU Small Finance Bank and Federal Bank — a notable sectoral trigger for banking stocks.
On the currency front, the rupee strengthened for a second consecutive session against the dollar, supported by short covering and dollar inflows through domestic banks. Softening crude prices, as hopes of a US-Iran diplomatic breakthrough reduced safe-haven demand for the greenback, added to the local currency’s resilience. Spot USD-INR faces immediate support at 93.87 and resistance at 94.60.
In commodities, Brent crude extended losses to trade near $98 per barrel and WTI fell towards $92 per barrel — both down roughly 3 per cent on the day — after reports indicated agreements on easing the US naval blockade in exchange for a gradual reopening of the Strait of Hormuz. Brent is now nearly $28 below last week’s peak, with the war premium unwinding rapidly. COMEX gold pushed above $4,760 per ounce and silver crossed $80 per ounce, extending gains for a third straight session, as easing inflation expectations and a retreating dollar lifted bullion. Softer-than-expected US ADP payroll data further reinforced rate-cut hopes, lending additional support to precious metals.
Looking ahead, markets will track Friday’s official US jobs report closely — a confirmation of labour market cooling could strengthen Federal Reserve rate-cut expectations and set the tone for global risk sentiment heading into next week. Domestically, Q4 earnings flow, crude oil trajectory and any formal confirmation from Washington and Tehran on the Strait of Hormuz agreement will remain the key variables steering investor positioning.