Benchmark stock market indices ended little changed on Thursday as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision and GDP data release, while continuing tensions in West Asia kept risk appetite in check.
The S&P BSE rose 13.84 points, or 0.02%, to close at 74,360.01, while the NSE Nifty50 gained 10.95 points, or 0.05%, to settle at 23,416.55.
The muted performance came after a volatile session in which markets swung between gains and losses amid mixed signals from the Middle East and uncertainty over the domestic economic outlook.
Despite Thursday’s flat finish, the benchmark indices remain under pressure. The Sensex and Nifty have declined 2.8% and 2.6%, respectively, over the last seven trading sessions.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “The market oscillated between gains and losses during the session, ultimately closing on a flat note, as persistent tensions in West Asia weighed on investor risk appetite.”
He added, “Despite this, the broader market continued to outperform following the recent correction, indicating underlying resilience in select segments. Investor sentiment remained cautious ahead of the upcoming RBI policy decision and the release of GDP data, both of which are expected to offer greater clarity on the growth outlook.”
Investor sentiment remained cautious ahead of Friday’s closely watched RBI monetary policy announcement.
According to a Reuters poll, the central bank is expected to keep the repo rate unchanged at 5.25%. However, economists increasingly expect interest rates to move higher later this year as inflation risks remain elevated due to rising energy prices and a weak rupee.
Market participants are also awaiting GDP data, which will provide fresh clues on the health of the economy amid persistent foreign investor outflows and geopolitical uncertainty.
The Indian rupee extended its recent decline and closed at 95.7850 against the US dollar, compared with 95.7050 in the previous session.
The conflict in West Asia remained a key concern for investors.
Although reports suggested the possibility of a fragile ceasefire between Israel and Lebanon, hostilities involving the US and Iran continued to create uncertainty around energy supplies and inflation.
Higher oil prices have been one of the biggest concerns for Indian markets in recent weeks as the country imports most of its crude oil requirements.
However, some relief came from softer crude prices on Thursday. Brent crude fell 1.42% to $96.42 per barrel, while WTI crude declined 1.20% to $94.87 per barrel.
The moderation in oil prices helped prevent deeper losses in equities.
Titan was the top-performing Sensex stock, rising 3.43%, followed by Eternal which gained 2.91%.
ITC advanced 1.21%, while Tech Mahindra added 0.95% and State Bank of India climbed 0.89%.
On the losing side, Infosys emerged as the biggest laggard, falling 1.76%. Bajaj Finserv declined 1.13%, HCL Technologies slipped 0.85% and Adani Ports fell 0.71%.
The weakness in frontline IT stocks continued after the sector witnessed heavy profit booking in the previous session.
While benchmark indices ended largely unchanged, broader markets performed better.
The Nifty Midcap 100 gained 0.46%, while the Nifty Smallcap 100 rose 0.49%, indicating continued investor interest in the broader market despite ongoing volatility.
India VIX, the market’s fear gauge, fell 2.41% to 15.89, suggesting a slight easing in nervousness among traders.
Sectoral performance remained mixed.
Nifty Media emerged as the top-performing sector, gaining 2.19%, while Nifty Consumer Durables also rose 2.18%.
Nifty PSU Bank climbed 0.41%, Nifty Pharma added 0.38%, and Nifty Financial Services gained 0.37%.
Among the laggards, Nifty FMCG fell 1.01%, Nifty Metal declined 0.73% and Nifty IT slipped 0.29%.
Nair also pointed to falling oil prices as a supportive factor for markets.
“Meanwhile, the moderation in oil prices—amid the possibility of a renewed, albeit fragile, ceasefire between Israel and Lebanon—may offer some downside support to the market,” he said.
Markets are likely to take cues from the RBI’s policy decision, GDP growth figures, movements in crude oil prices and developments in West Asia.
Any signals from the central bank regarding inflation, liquidity and currency management could influence market direction in the near term, while geopolitical developments remain a key risk factor for investors.
(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.)