Indian benchmark indices closed marginally lower on Thursday after a volatile session, giving up early gains as investors remained cautious ahead of the upcoming Trump-Modi meeting. The BSE Sensex declined 32.11 points or 0.04 per cent to close at 76,138.97, while the Nifty 50 slipped 13.85 points or 0.06 per cent to 23,031.40.
Metal and pharmaceutical stocks led the gains, with Tata Steel emerging as the top gainer on the NSE, rising 3.12 per cent. Sun Pharma followed closely with a 3.02 per cent increase, while Bajaj Finserv and Bajaj Finance gained 3.00 per cent and 2.28 per cent respectively. Cipla rounded out the top five gainers with a 1.77 per cent rise.
On the flip side, Adani Enterprises was the biggest loser, falling 4.93 per cent. Other major decliners included Adani Ports (-1.86 per cent), Hero MotoCorp (-1.59 per cent), Infosys (-1.21 per cent), and L&T (-1.05 per cent).
Market breadth analysis
The market breadth remained negative, with 2,089 stocks declining against 1,858 advances and 127 remaining unchanged. Notably, 238 stocks hit their 52-week lows, while only 54 touched their 52-week highs.
Vinod Nair, Head of Research at Geojit Financial Services, explained the market’s performance: “Despite initial market optimism driven by easing domestic inflation data, the rally lost momentum amid uncertain global cues and subdued corporate earnings. Furthermore, a surge in Chinese technology stocks, fuelled by heightened interest in artificial intelligence, redirected FIIs in pursuit of more attractive returns. Market participants are now closely monitoring the outcome of the Trump-Modi discussions for any trade and tariff concessions for a potential pullback rally.”
The Healthcare and Pharma indices outperformed the market, rallying over 1 percent, while IT and PSU Banks indices shed over 1 percent. The Nifty Financial Services index gained 0.34 per cent to close at 23,272.40, while the Nifty Bank index fell 0.24 per cent to 49,359.85.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted: “Today, the benchmark indices witnessed profit booking at higher levels… We are of the view that the current market texture is volatile and non-directional, making level-based trading an ideal strategy for day traders. In the near future, 23200/76500 and 23250/76750 could be the key resistance areas for the bulls, while 22950/76000 and 22,900/75700 would be the key support zones.”
The Indian rupee strengthened against the US dollar, gaining 0.07 rupees to close at 86.83. Jateen Trivedi, VP Research Analyst at LKP Securities, attributed this to dollar weakness: “Rupee witnessed positive moves as US CPI data came in higher, yet it failed to push the dollar higher. Instead, the dollar lost momentum, declining from 108.20 to 107.60, which supported the rupee’s appreciation.”
Gold price trends
Gold prices continued their upward trajectory despite the US CPI data not signalling imminent rate cuts. “The resilience in gold is driven by ongoing global uncertainty, as market participants factor in the potential economic impact of US tariffs. The safe-haven appeal of gold continues to support its strength,” Trivedi added.
Ajit Mishra, SVP of Research at Religare Broking Ltd., cautioned: “The persistent selling pressure on rebounds suggests that bears remain firmly in control. Additionally, global uncertainties, including the risk of potential tariff wars, are likely to keep traders cautious. Given the current scenario, we recommend a stock-specific trading approach with a strong focus on risk management and wait for clarity.”
Market technicians pointed to key levels to watch. Nagaraj Shetti from HDFC Securities observed that “a small red candle was formed on the daily chart with long upper shadow,” indicating a lack of strength in the upside bounce. He identified 22,800 as immediate support, while a move above 23,250 could confirm a near-term bottom reversal.
Trump-Modi meeting
Investors are particularly focused on the outcome of Friday’s meeting between Prime Minister Modi and former US President Trump, with any positive developments on tariff relief potentially triggering a sharp rebound in the benchmarks, according to Satish Chandra Aluri from Lemonn Markets Desk.
The broader indices showed mixed performance, with the Nifty Next 50 gaining 0.20 per cent to close at 60,947.75, while the Nifty Midcap Select declined 0.31 per cent to 11,359.90. With eight stocks hitting the upper circuit and three hitting the lower circuit, volatility remained a key feature of the day’s trading.
