Analysts expect near-term volatility to persist as global uncertainties—including Fed rate outlook, currency fluctuations, and commodity prices—continue to influence sentiment. However, India’s strong macroeconomic fundamentals and resilient corporate earnings are seen as key drivers for medium- to long-term equity performance.
BIZ DESK
Benchmark Indian equity indices ended marginally higher on Thursday after a day of choppy, range-bound trading, with investors tracking global cues and awaiting fresh domestic triggers.
The BSE Sensex added 143 points, or 0.17%, to close at 82,001, while the NSE Nifty 50 gained 33 points, or 0.13%, to settle at 25,084. Broader market indices, however, remained subdued—the BSE MidCap index slipped 0.1%, while the SmallCap index ended flat.
Mixed Performance Across Sectors
In the Sensex basket, 16 of the 30 constituents ended lower, highlighting the cautious undertone. Power Grid and Eternal fell nearly 1.5% each, while Hindustan Unilever dropped over 1%, emerging as top laggards. On the upside, Bajaj Finserv rose 1.1%, ICICI Bank added almost 1.1%, and Bajaj Finance climbed 0.9%.
Sectoral performance mirrored the mixed trend. Out of 21 BSE sectoral indices, 11 closed in the green. Healthcare (+0.6%), Realty (+0.4%), and Industrials (+0.2%) led the gainers, while Power (-0.9%), Utilities (-0.6%), and Services (-0.5%) were among the notable losers.
Market Breadth and Participation
The overall market breadth at the BSE was marginally positive. Out of the actively traded stocks, 2,094 shares advanced, 2,000 declined, and 154 remained unchanged. Analysts said the narrow advance-decline ratio reflects underlying caution as investors weigh valuations amid lack of strong triggers.
Global and Domestic Context
Globally, Asian markets traded mixed as investors assessed the U.S. Federal Reserve’s latest signals on interest rates, while crude oil prices inched higher, raising concerns of imported inflationary pressures for India. Domestically, the focus remains on the upcoming RBI monetary policy review in early September, quarterly earnings of key large-cap companies, and foreign institutional investor (FII) activity.
FIIs were net sellers in recent sessions, sparking some volatility, though strong retail and domestic institutional investor (DII) participation has helped cushion downside risks. “The market is consolidating near record highs. Investors are now waiting for fresh triggers from earnings, policy commentary, and global cues before taking decisive bets,” said a Mumbai-based fund manager.
Outlook
Analysts expect near-term volatility to persist as global uncertainties—including Fed rate outlook, currency fluctuations, and commodity prices—continue to influence sentiment. However, India’s strong macroeconomic fundamentals and resilient corporate earnings are seen as key drivers for medium- to long-term equity performance.