CHENNAI: Indian equity benchmarks closed almost unchanged on Thursday as investors adopted a cautious stance ahead of key domestic and global developments. The BSE Sensex settled at 84,478.67, up just 12 points or 0.01 percent, while the NSE Nifty 50 ended at 25,879.15, a marginal gain of 3 points or 0.01 percent.
Broader market indices underperformed, with the Nifty Midcap 100 and Smallcap 100 slipping around 0.35–0.37 percent, reflecting continued profit-taking after the recent rally. Sectoral trends were mixed — Metals, Realty, and Pharma shares saw mild gains, while IT, Media, and PSU Banks came under pressure.
The domestic currency remained stable, with the rupee closing at Rs 88.66 per US dollar, unchanged from the previous day.
The market sentiment remained subdued as investors awaited further clarity on the India–US trade deal and the outcome of the Bihar state elections, both seen as potential policy triggers. The sharp decline in October retail inflation to 0.25 percent has reinforced expectations that the Reserve Bank of India (RBI) may maintain a supportive monetary stance, but traders preferred to stay on the sidelines ahead of clearer signals.
Global cues were mixed. The easing of the US government shutdown provided some relief, but lingering uncertainty over American trade policies, inflation data, and interest rate direction kept investors wary. Weakness in global IT stocks also weighed on Indian technology counters.
Analysts said the market appears to be in a consolidation phase after three consecutive sessions of gains. Elevated valuations and persistent foreign institutional investor (FII) outflows have capped further upside momentum. “The current phase looks more like a pause than a reversal. Investors are waiting for a decisive trigger such as election outcomes or major policy announcements before taking fresh positions,” said a Mumbai-based fund manager.
Outlook
The near-term market direction will likely depend on the outcome of the Bihar elections and its policy implications, progress in India–US trade discussions, trends in foreign fund flows and upcoming corporate earnings, and the RBI’s commentary on liquidity and rates in light of cooling inflation.
Overall, the market is expected to remain range-bound in the short term, with selective buying in sectors showing fundamental strength such as metals, pharmaceuticals, and infrastructure-related themes.
