CHENNAI: Indian equity benchmarks opened on a firm note on Thursday, supported by upbeat corporate earnings, positive global cues, and optimism over MSCI index inclusions. However, the initial gains moderated as traders turned cautious amid selective profit booking in metal and power counters.
In early trade, the BSE Sensex rose over 300 points to around 83,698, while the Nifty 50 climbed nearly 70 points to touch 25,666. However, the Sensex dropped sharply in the midmorning and settled at 83,399 at 11.30 AM. Broader market indices, including mid- and small-cap segments, underperformed as investors booked profits following a strong run earlier in the week.
Market sentiment was buoyed by better-than-expected quarterly results from companies such as Britannia Industries and Mahindra & Mahindra. The inclusion of several Indian firms in the MSCI Global Standard Index also lifted foreign inflow expectations. Positive cues from other Asian markets added to the early momentum, with Japan and South Korea trading higher in morning deals.
However, weakness in select sectors limited overall gains. The metal index declined sharply, led by losses in Hindalco Industries after negative global developments weighed on sentiment. Power and media stocks also traded lower, while FMCG, banking, and auto shares showed resilience.
Foreign Institutional Investors (FIIs) continued to remain net sellers, offloading over ₹1,000 crore in the previous session, while Domestic Institutional Investors (DIIs) provided partial support through sustained buying.
Technically, the Nifty faces immediate resistance near 25,750–25,800, while support lies around 25,500–25,400 levels. Analysts expect the index to remain range-bound in the near term, with a focus on stock-specific action rather than broad-based movement.
Overall, the market tone was cautiously optimistic, supported by strong earnings and global cues, but weighed down by persistent foreign selling and sectoral weakness in metals and power. Traders are likely to monitor corporate results and global developments closely for further direction.
