Benchmark stock market indices opened on a muted note on Thursday, tracking mixed global cues, even as easing geopolitical tensions offered some support. Benchmark indices hovered near the flatline in early trade.
The BSE Sensex was trading at 78,030.99, up 42.31 points or 0.05% at around 9:43 am. The Nifty 50, however, slipped marginally by 6.85 points or 0.03% to 24,189.90.
Investor sentiment remained cautious despite some positive global developments. A 10-day ceasefire between Lebanon and Israel came into effect on Thursday, while US President Donald Trump indicated that the next round of talks with Iran could take place over the weekend. These developments lent some support to global markets.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the resilience of the mother market US and positive news relating to ceasefire between Israel and Lebanon bode well for the market.
“However, President Trump’s bravado has to taken lightly, going by his track record of total inconsistency. Investors should be guided by actions rather than words. A significant and distinct trend in the market is the strength of the mid and smallcaps relative to the large caps. Fear of FIIs again turning sellers on rallies is weighing on large caps,” he added.
MIDCAPS, SMALLCAPS SHOW RESILIENCE
The broader market continued to outperform frontline indices. Nifty Midcap 100 rose 0.15% while Nifty Smallcap 100 gained 0.54%, indicating sustained retail and domestic flows into these segments.
Among sectoral indices, Nifty FMCG, Media and Oil & Gas traded in the green, while IT, Metal and Pharma stocks saw mild selling pressure.
SENSEX GAINERS AND LOSERS
On the Sensex pack, Maruti Suzuki led the gains, rising 1.89%, followed by Adani Ports which was up 0.99%. ITC gained 0.97% while Hindustan Unilever and Kotak Mahindra Bank also traded higher.
HCLTech emerged as the top laggard, falling 1.03%. Tata Steel declined 0.64%, while Bajaj Finance, TCS and Bharti Airtel also traded in the red.
Crude oil prices slipped in early trade, offering some relief on the inflation front. WTI crude was down 1.27% at $93.49 per barrel, while Brent crude declined 1.25% to $98.15 per barrel.
OUTLOOK FOR COMING SESSIONS
“In the near-term, therefore, the broader market may do better aided by the fund flows and retail buying in the segment,” said Vijaykumar.
“However, the prospects of largecaps are better in the medium to long-term. Investors should monitor Q4 results and management commentary to pick stocks in this results season,” he added.
Going ahead, market participants are expected to remain focused on Q4 earnings announcements and management commentary, which could drive stock-specific action. While near-term volatility may persist, especially in large caps, broader markets may continue to see traction supported by domestic inflows.
