Indian Markets Mixed: Sensex Up, Nifty Down Amid Geopolitics

Indian equity benchmarks closed mixed on Thursday, with the BSE Sensex gaining marginally while the CNX Nifty registered a slight decline. Investors exercised caution amidst persistent geopolitical tensions and volatility ahead of the weekly F&O expiry.

Key Market Numbers

• BSE Sensex: Up 113.61 points (0.15%) to 78,079.96
• CNX Nifty: Down 40.10 points (0.16%) to 24,395.85
• FII Selling: ₹1,002.50 crore on Wednesday

The mixed performance reflected underlying caution stemming from geopolitical tensions in the Middle East and elevated crude oil prices. Volatility also increased ahead of the weekly Futures & Options (F&O) expiry.

Foreign institutional investors (FIIs) contributed to the cautious sentiment, breaking a three-session buying streak. FIIs offloaded Indian equities worth ₹1,002.50 crore on Wednesday.

Index-Specific Movements

The BSE Sensex managed to close above the neutral line, primarily supported by gains in select heavyweight stocks. Sectors like Realty and Telecom provided crucial upward momentum.

Contributing further to the Sensex’s rise were easing concerns over US interest rates and a strong showing in corporate earnings. This provided foundational support for the broader market gauge.

In contrast, the Nifty 50 recorded a marginal dip, driven by broad-based selling pressure across its heavyweight constituents. This led to a divergence in performance between the two key benchmarks.

Top Nifty Movers

• Top Gainers: Tata Consumer Products, Tata Motors Passenger Vehicles
• Major Laggards: Hindalco Industries, ICICI Bank

India also made a significant stride in trade relations by signing the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA) with the Southern African Customs Union (SACU). This marks a move to strengthen economic engagement.

The Economic Advisory Council to the Prime Minister (EAC-PM) recommended intensifying targeted support for innovative firms to accelerate investment decisions. They also advocated for increased public investment to stimulate private sector participation.

Union Minister of Commerce and Industry Piyush Goyal urged Indian businesses to adopt fair trading practices and promote a circular economy. He highlighted the global interest in increasing trade relations with India.

On the regulatory front, the Reserve Bank of India (RBI) issued draft rules aimed at harmonising interest rate determination policies. This initiative seeks to align practices between banks and non-banking finance companies (NBFCs).

Global Market Overview

Globally, European markets traded mostly in the green, buoyed by US inflation data that tempered expectations for immediate Federal Reserve interest rate hikes. Asian markets, however, displayed a mixed performance.