Biz desk
After a choppy trading session marked by mixed global cues and selective buying, domestic equity benchmarks Sensex and Nifty ended nearly flat but managed to hold a positive bias. The Sensex gained 40 points to close at 83,978, while the Nifty advanced 41 points to settle at 25,763.
Despite volatility in large caps, broader markets outperformed, with the BSE Mid-Cap Index rising 0.6% and the Small-Cap Index climbing 0.7%, reflecting continued investor interest in mid-tier and emerging companies.
Market Overview: Volatile Yet Resilient
The session opened on a weaker note due to cautious global sentiment, but selective buying in auto, telecom, and realty stocks helped markets recover. The overall mood remained sideways but stable, suggesting consolidation after last week’s rally.
Out of 30 Sensex components, 15 stocks advanced, indicating a balanced market tone.
Sector-wise Performance
Auto Sector: Driving Momentum
Automobile stocks provided strong support to the indices.
- Mahindra & Mahindra and Tata Motors Passenger Vehicles surged 1.7% each, supported by robust festive demand and expectations of strong quarterly results.
- However, Maruti Suzuki bucked the trend, plunging 3.4% amid concerns over rising input costs and lower rural demand growth.
Overall, the auto index reflected investor optimism on domestic demand recovery and a shift towards EV production.
Banking & Financials: Stable Gains
Banking counters saw moderate buying led by State Bank of India, which gained 1.4%, driven by positive commentary on credit growth and improved asset quality.
Private lenders remained mixed, as investors awaited fresh cues from RBI’s upcoming monetary policy review.
The sector continues to reflect long-term stability, supported by strong credit demand and lower NPAs.
Telecom Sector: Strongest Performer
The Telecommunication Index led the rally, climbing 2.9%, on expectations of tariff hikes and improved average revenue per user (ARPU) figures.
Market analysts noted strong retail and institutional interest in telecom counters as data usage and 5G penetration continue to rise, boosting profitability prospects for leading players.
Real Estate & Infrastructure: Renewed Optimism
The Realty Index gained 2.3%, reflecting positive sentiment from ongoing housing demand, lower inventory levels, and steady mortgage rates.
Infrastructure and construction-linked stocks also advanced, supported by reports of fresh government spending allocations ahead of the budget cycle.
Healthcare: Steady Gains
The Healthcare Index rose 1.1%, led by selective buying in pharmaceutical and hospital stocks. Analysts attributed the uptrend to expectations of stronger exports, particularly to the U.S., and stable domestic pricing in generics.
IT & FMCG: Mild Weakness
Technology counters remained subdued, with TCS slipping 1.4% and Focused IT index down 0.1%. The sector is facing headwinds from slowing global tech spending and currency volatility.
FMCG stocks, including ITC, fell 1.5%, as investors booked profits after recent highs. The sector remains defensive but lacks short-term triggers for fresh buying.
Utilities & Consumer Durables: Marginal Decline
Both sectors declined by 0.2%, reflecting investor caution amid muted demand outlook. Power sector stocks saw mild profit-taking after last week’s rally, while durable goods manufacturers faced concerns over weak discretionary consumption.
Market Breadth and Investor Sentiment
The overall market breadth remained positive. Out of 4,461 traded companies on the BSE,
- 2,227 advanced,
- 2,009 declined, and
- 225 remained unchanged.
Analysts described the session as a healthy consolidation phase, with rotational buying in select mid-cap and sectoral stocks.
Outlook
Market experts expect near-term volatility to persist amid global uncertainties, oil price fluctuations, and corporate earnings data. However, the underlying tone remains constructive, with strong domestic macro fundamentals, steady inflows from mutual funds, and expectations of a policy-driven boost to infrastructure and manufacturing sectors ahead of the upcoming budget.