Market Outlook – Indian Stocks End Flat After Volatile Thursday Session
Market Outlook – Indian equity benchmarks closed marginally lower on Thursday after a highly fluctuating trading session, as investors remained cautious amid global geopolitical tensions, rising energy prices and monthly derivatives expiry pressure.
The domestic market opened on a weak note and witnessed sharp swings throughout the day before recovering some of the early losses near closing hours. Despite the rebound, benchmark indices settled slightly in the red, reflecting continued uncertainty among investors.
The NSE Nifty 50 finished the session at 23,654.70, slipping 4.30 points or 0.02 per cent. Meanwhile, the BSE Sensex ended at 75,183.36, lower by 135.03 points or 0.18 per cent.
Geopolitical Concerns Weigh on Investor Confidence
Market participants closely monitored developments in the Middle East, particularly the ongoing tensions involving the United States and Iran. Analysts noted that uncertainty surrounding the geopolitical situation continued to affect overall market sentiment.
According to market experts, traders also remained alert to fluctuations in crude oil prices, currency movements and bond yields, all of which contributed to the cautious mood on Dalal Street.
Vikram Kasat, Head Advisory at PL Capital, said the market experienced intense volatility during the session as benchmark indices attempted to recover after steep intraday declines. However, selling pressure in select sectors kept the market under strain until the close.
He added that concerns related to global events and expiry-day trading activity increased nervousness among investors throughout the day.
Defensive Buying Limits Market Losses
Despite weakness in frontline indices, selective buying in defensive and sector-specific stocks helped limit the downside. Investors showed interest in sectors considered relatively stable during uncertain market conditions.
Among sectoral performers on the NSE, the Realty index emerged as one of the strongest gainers, advancing around 1 per cent. Auto, PSU Bank, Metal and Pharma sectors also recorded moderate gains during the session.
On the other hand, Information Technology stocks remained under pressure, with the Nifty IT index falling 0.56 per cent. Media and Private Bank indices also ended lower amid mixed investor participation.
Analysts believe the market may continue to react sharply to international developments over the coming sessions. Foreign institutional investor activity, domestic economic indicators and global commodity prices are expected to remain key factors influencing short-term direction.
Crude Oil Prices Stay Elevated
Global crude oil prices continued to remain at elevated levels, although Brent crude eased slightly compared to the previous session. At the time of reporting, Brent crude was trading around USD 105 per barrel.
Higher crude prices are often viewed as a concern for emerging economies like India because they can increase inflationary pressures and impact import costs. Investors are therefore keeping a close watch on energy market movements alongside currency trends.
Gold Remains Stable, Silver Declines
In the commodities segment, gold prices remained largely unchanged. Twenty-four karat gold traded at Rs 1,59,538 per 10 grams during the session.
Silver prices, however, witnessed weakness and declined by 0.80 per cent, settling at Rs 2,71,950 per kilogram.
Asian Markets Deliver Mixed Performance
Asian stock markets displayed a mixed trend on Thursday. Japan’s Nikkei 225 index posted strong gains of more than 3 per cent, while Taiwan’s weighted index also advanced sharply.
South Korea’s KOSPI index recorded a significant rally of nearly 8 per cent, reflecting strong buying momentum in the region. Singapore’s Straits Times index also closed in positive territory.
In contrast, Hong Kong’s Hang Seng index ended lower by around 1 per cent, highlighting uneven sentiment across Asian financial markets.