Stock markets closed lower on Thursday, ending a volatile session with investors taking profits after a recent rally. The BSE Sensex finished at 77,988.68, down 122.56 points or 0.16%, while the NSE Nifty 50 settled at 24,196.75, a decrease of 34.55 points or 0.14%.
Vinod Nair, Head of Research at Geojit Investments Limited, mentioned that although the market started positively, it closed with a slight loss on the weekly expiry day due to profit-taking following recent gains. Market focus remains on clarity regarding the US-Iran negotiations’ second round, influencing short-term trends. High WPI inflation figures impacted auto and consumption stocks, while IT stocks were bolstered by increased confidence in AI-driven demand.
Markets initially rose on hopes of easing global tensions and lower oil prices but failed to maintain momentum throughout the day. Increased selling pressure in the latter half caused both indices to relinquish gains and finish in negative territory. The session saw Nifty reaching highs of 24,400.95 and lows of 24,102.80.
Profit booking was the primary reason for the decline, with investors securing gains especially in large-cap stocks after recent strong recoveries. This led to widespread selling across major sectors, pushing indices lower despite a positive start.
Among Sensex stocks, top gainers included Trent, Eternal, Adani Ports, BEL, and Infosys, while HDFC Bank experienced the most significant decline among heavyweight index stocks. Sector-wise, Nifty Metal and Nifty IT ended higher, while Auto, Financial Services, PSU Bank, Private Bank, and Oil & Gas sectors closed in the red.
The broader markets displayed better resilience compared to the main indices, with the Nifty Midcap 100 and Nifty Smallcap 100 indices recording gains. India VIX, indicating market volatility, decreased by 3.12% to 18.09, suggesting a slight reduction in fear levels despite the day’s volatility.
Market movements indicate ongoing volatility in the near term, with short-term corrections likely amid global cues and improving sentiments. Investors are advised to focus on fundamentally strong stocks and sectors showing resilience even during weak sessions, as caution is crucial in the current market phase.