Equity markets ended flat on Thursday’s monthly expiry session as gains in financials were offset by losses in automobile and real estate sectors. The BSE Sensex inched up by 10.31 points to close at 74,612.43, while the Nifty 50 dipped marginally by 2.50 points to 22,545.05, extending its losing streak to a seventh consecutive session.
Financial stocks emerged as the day’s winners after the Reserve Bank of India eased lending norms for microfinance institutions and NBFCs. Shriram Finance led the gainers on NSE, surging 5.18 per cent with a volume of 1.7 crore shares. Bajaj Finserv and Bajaj Finance followed with gains of 2.40 per cent and 2.03 per cent, respectively. Hindalco advanced 1.78 per cent, while Sun Pharma rose 1.76 per cent.
On the losing side, UltraCemCo was the top laggard, dropping 4.69 per cent after announcing plans to enter the wires and cables market with a ₹1,800 crore investment. Trent fell 3.63 per cent, Bajaj Auto declined 2.65 per cent, while Tata Motors and Mahindra & Mahindra both shed over 2 per cent.
Market breadth remained overwhelmingly negative, with 3,030 stocks declining against just 943 advances on the BSE. Notably, 466 stocks hit their 52-week lows compared to only 52 touching 52-week highs, reflecting the broader market weakness.
“Market opened gap up after trading holiday but weak undertone remains persistent in the market with every rally getting sold into,” said Bhavik Patel, Sr. Research Analyst at Tradebulls Securities. “While Nifty index remained under pressure, some respite was seen in banking stocks, mainly because of expectation of one more rate cut from RBI in next meet.”
The broader market faced steeper losses, with the Nifty Midcap Select and Nifty Next 50 indices declining 0.89 per cent and 0.92 per cent, respectively. Sectoral performance was mixed, with Nifty Bank and Financial Services gaining 0.28 per cent and 0.60 per cent, respectively, while the auto, realty, and media sectors saw significant selling pressure.
Rupee unchanged
The Indian rupee closed unchanged at 87.17 against the US dollar after experiencing high volatility during the session. “Rupee traded flat near 87.17 after experiencing high volatility, weakening to 87.54 before recovering to 87.10,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The session ended on a neutral note as the dollar index remained range-bound, and FII sell-off was countered by DII inflows.”
Experts’ take
Technical analysts pointed to indecision in the market. “The past two sessions reflect indecision, likely due to oversold conditions. However, rotational selling across key sectors is not only limiting the rebound but also gradually dragging the index lower,” noted Ajit Mishra, SVP of Research at Religare Broking Ltd.
Rupak De, Senior Technical Analyst at LKP Securities, added, “Nifty remained range bound during the day before closing flat. Sellers continued to dominate the market at higher levels. On the lower end, 22,500 continues to act as support. We expect Nifty to decline towards 22,200 and lower if it falls below 22,500.”
Market volatility decreased with the India VIX declining 2.97 per cent to 13.31. However, the narrow trading range of just 105 points was the smallest observed in more than ten sessions, indicating a compression in volatility.
Donald Trump’s tariff announcements continued to dampen investor sentiment. “Global market swayed negatively, and domestic broader market sentiment remained weak due to fresh uncertainty surrounding US tariff policies,” said Vinod Nair, Head of Research at Geojit Financial Services.
Investors are now focusing on upcoming economic data releases. “Market will now focus on US Core PCE on Friday to gauge US’s inflation progress which will give further triggers to global markets,” Patel explained. Domestically, traders await India’s Q3 GDP estimates, which are scheduled for release on Friday.
Gold prices
Gold prices weakened, with MCX gold declining by ₹800 to touch ₹85,000. “Gold prices traded weak as a sell-off was witnessed below $2,915, pushing prices toward $2,880 in Comex,” said Trivedi.
The Nifty posted its worst monthly sliding streak of 5 months, the longest since 1996, according to Satish Chandra Aluri of Lemonn Markets. Despite this prolonged weakness, some analysts note the market’s oversold conditions. “The daily and weekly oscillators in the index are placed at an extreme oversold territory. Hence, we expect the index to consolidate in the range of 22,400-23,000 in the coming sessions,” stated Bajaj Broking’s market commentary.