Equity markets traded higher on Thursday, with the benchmark Sensex gaining more than 250 points and the Nifty 50 holding above the 24,650 mark. Investors found some comfort in a better-than-expected June-quarter earnings season and hopes of a diplomatic resolution to the Middle East crisis, although the overall market remained selective.
The market’s tone was helped by buying in banking, pharmaceuticals, healthcare, chemicals, real estate and oil and gas stocks. Select midcap shares also attracted interest. At the same time, investors remained cautious in auto, IT, media, metal, private banking, FMCG and cement stocks, keeping the broader market from turning uniformly bullish.
Among the prominent gainers, HCL Technologies and ICICI Bank were among the early leaders in the Sensex pack. Their gains helped the benchmark index stay firmly in positive territory.
Outside the frontline indices, Hindustan Aeronautics Ltd (HAL) was one of the standout performers. Its shares jumped more than 6% for a second consecutive session after the company’s annual report highlighted a strong FY26 order book of around Rs 2.55 lakh crore. The order pipeline provides the defence major with revenue visibility for the next seven to eight years. The company is also looking to accelerate production by improving its supply chain, expanding capacity and investing in infrastructure.
Navin Fluorine International was another major mover, with the stock surging around 11% after its June-quarter profit more than doubled. The strong earnings performance renewed buying interest in the specialty chemicals company. Neuland Laboratories also gained more than 6% after reporting a 975% year-on-year jump in first-quarter profit, making both stocks prominent among the day’s earnings-driven movers.
PB Fintech, the parent company of Policybazaar, also remained in focus. Its shares rose around 2% after the company reported a 92% year-on-year increase in Q1 FY27 net profit to Rs 163 crore. The growth was supported by higher insurance premiums, stronger operating revenue and improved margins. However, analysts remained cautious about the stock’s valuation, with Morgan Stanley and Nomura seeing significant downside risks.
Sterlite Technologies gained around 4% after announcing an international order worth Rs 1,760 crore, adding another stock-specific trigger to the session. Meanwhile, newly listed Juniper Green Energy made its market debut at a 9% premium over its IPO price, giving investors another point of interest in the primary-market segment.
The broader market, however, did not show the same strength as the headline indices. Nine of the 16 Nifty sectoral indices were reported to be lower, reflecting a mixed investment mood. The divergence suggests that investors are still rotating between sectors and individual stocks rather than making broad-based bets.
Global cues also remained mixed. S&P 500 futures edged higher, while Japan’s Topix declined. Australia’s benchmark gained, whereas Hong Kong’s Hang Seng fell sharply. The Shanghai Composite and Euro Stoxx futures were marginally positive. The mixed overseas signals meant that domestic earnings and company-specific developments continued to play a major role in determining the direction of Indian stocks.
Market participants are also keeping a close eye on the weekly derivatives expiry, which could lead to increased volatility during the later part of the session. The market is adjusting to changes linked to the Closing Auction Session, which had contributed to sharp swings in the previous session. The India VIX had declined 1.5% to 12 on Wednesday, suggesting that some immediate anxiety had eased.
From a technical perspective, the 24,650 level is important for the Nifty 50. Geojit Investments’ Chief Market Strategist Anand James said a sustained move above 24,650 could be an early indication of a potential breakout, while 24,550 was identified as the day’s downside marker. The next important hurdle is around 24,775.
Investors are therefore balancing optimism over corporate earnings with concerns around valuations, global uncertainty and foreign fund flows. The latest market action suggests that buyers are returning, but they remain selective.
For now, the focus remains on whether the Sensex and Nifty can hold their gains and whether the Nifty can move decisively beyond 24,650. A sustained breakout could improve sentiment further, while failure to hold the level may bring back profit-taking.
Foreign institutional investor activity, crude oil prices and the rupee’s movement against the dollar will also remain important triggers, as traders assess the sustainability of the current market recovery.