Indian equity markets traded flat on Thursday amidst varied signals from global counterparts. As of 9:50 a.m., the Sensex registered a marginal decline of 28 points or 0.04% at 77,309, while the Nifty saw a minor decrease of 16 points or 0.07% at 23,499.
Banking stocks led the market, with the Nifty Bank rising by 153 points or 0.30% to reach 51,558.
In contrast, midcap and smallcap stocks demonstrated stronger performance compared to largecaps. The Nifty Midcap 100 index surged by 334 points or 0.61% to 55,286, while the Nifty Smallcap 100 index rose by 97 points or 0.54% to 18,257.
Among the Sensex constituents, top gainers included Kotak Mahindra Bank, HDFC Bank, Tata Motors, Tata Steel, Titan Company, UltraTech Cement, Bharti Airtel, and M&M. Conversely, Sun Pharma, Bajaj Finance, Bajaj Finserv, Nestle, and HCL Tech faced declines.
Sectorally, banking, realty, and metal indices recorded notable gains, whereas auto, IT, pharma, and FMCG sectors lagged behind.
According to market analysts, “There is a noticeable sectoral rotation, with considerable funds flowing into fairly valued largecaps in banking, while sectors like capital goods, telecom, metals, and FMCG witness profit booking. This rotation is expected to persist in the short term, reflecting a healthy market adjustment. The broader market, which had been overvalued, is also experiencing a period of consolidation.”
They added, “The trend of FII selling appears to have reversed, as they turned significant buyers yesterday, posting positive buy figures for June. With both FIIs and DIIs now net buyers, market resilience is anticipated.”
Asian markets showed mixed trends, with Tokyo, Shanghai, Hong Kong, and Bangkok in negative territory, while Seoul and Jakarta reported gains. American markets closed higher on Wednesday.
