Benchmark equity indices Nifty and Sensex closed lower on Thursday, stepping back from their intra-day highs due to selling pressure in banking and auto stocks. The Sensex concluded at 77,988.68, down 122.56 points or 0.16%, while the Nifty ended at 24,196.75, down 34.55 points or 0.14%. Investors also exercised caution awaiting more clarity on the upcoming US-Iran negotiations.
Experts noted that the Nifty’s near-term sentiment appears uncertain as it struggled to surpass the 24,300 resistance level decisively. They mentioned that a sustained rally could materialize in the near term if the index convincingly breaches the 24,300 mark in the next session. However, failing to do so might trigger significant profit booking, potentially pulling the index towards 24,000.
While frontline indices like HDFC Bank, Oil and Natural Gas Corporation, and HDFC Life Insurance Company faced declines in the Nifty index, broader markets displayed resilience, outperforming the benchmarks. The Nifty MidCap index rose by 0.63%, and the Nifty SmallCap index gained 0.83%. Metal and IT stocks led the gains in the sectoral front, with the Nifty Metal and Nifty IT indices emerging as top performers. Conversely, rate-sensitive sectors like private banks and financial services witnessed selling pressure, with the Nifty Private Bank and Nifty Financial Services indices closing as the top losers.
Market participants are anticipated to remain vigilant in the short term, monitoring global cues and geopolitical tensions, especially the US-Iran talks, which could impact investor sentiment and market trends. Analysts highlighted that the sustainability of the trend ahead will hinge on earnings clarity, stability in crude prices, and the ongoing improvement in global risk sentiment. Additionally, after a recent period of weakness, the Indian rupee strengthened as renewed risk-on sentiment attracted foreign institutional investors back to the domestic equity markets. An analyst suggested that the USDINR spot rate is likely to consolidate within a range of 92.80 to 93.50 in the near term.
