Indian equity markets ended higher on Thursday, with the Sensex gaining 273.55 points and the Nifty 50 closing above the 24,300 mark. The gains came despite a cautious trading session, as investors weighed the US Federal Reserve’s decision to keep interest rates unchanged against signals that borrowing costs could remain elevated for longer.
The 30-share BSE Sensex closed at 77,928.15, rising 273.55 points, or 0.35 per cent. The NSE Nifty 50 gained 66.95 points, or 0.28 per cent, to settle at 24,317.15. The Nifty extended its gains for a second straight session, although the overall market mood remained mixed.
The market’s performance was shaped by a combination of domestic earnings, sector-specific buying and global cues. The US Federal Reserve kept its benchmark interest rates unchanged, but three policymakers dissented in favour of a rate hike. That raised concerns that US interest rates could stay higher for longer, limiting the scope for a stronger rally in global equities.
On Dalal Street, auto stocks were among the strongest performers. The Nifty Auto index gained 1.6 per cent, supported by encouraging quarterly results. Mahindra & Mahindra rose around 2 per cent, while Balkrishna Industries surged 10.8 per cent after reporting a strong June-quarter performance. Balkrishna Industries posted a 50 per cent year-on-year increase in consolidated net profit to Rs 432 crore.
Mahindra & Mahindra was also among the top Nifty gainers after reporting a 7 per cent rise in first-quarter profit to Rs 3,685 crore. Revenue increased 23 per cent year-on-year, providing further support to the auto segment. Maruti Suzuki also gained around 2 per cent during the session, adding to the sector’s strength.
Coal India was another key performer, rising around 2 per cent and featuring among the leading gainers on the Nifty. Maruti Suzuki and other auto counters also attracted buying interest as investors continued to track the June-quarter earnings season.
The broader market, however, did not match the strength seen in the headline indices. The Nifty Midcap 100 fell 0.31 per cent, ending a three-session winning streak, while the Nifty Smallcap 100 declined 0.56 per cent. KPIT Technologies was among the sharper midcap losers, falling 7.46 per cent after weak first-quarter results.
Banking stocks remained under pressure. The Nifty Bank index slipped around 0.1 per cent, with Federal Bank and Yes Bank among the notable losers. The weakness in financial stocks limited the broader market’s upside even as select large-cap shares remained firm.
Dabur India also came under selling pressure and fell around 1.8 per cent. Brokerages pointed to subdued underlying growth and a lack of near-term earnings catalysts. Realty was the weakest major sectoral index, while financial services, banking, private banks, cement and chemicals also remained under pressure.
The IT sector offered some support to the market. The Nifty IT index gained around 0.2 per cent on Thursday and has risen about 18.6 per cent in July, putting it on track for its strongest monthly performance in six years. The sector has benefited from expectations that Indian technology companies could remain relatively better placed amid concerns surrounding an artificial-intelligence-led sell-off in global technology stocks.
Sun Pharmaceutical Industries was another stock in focus after hitting a record high following approval from Brazil’s health regulator for its semaglutide injection. The development added to positive sentiment around the pharmaceutical major.
Among other corporate developments, Vedanta reported a sharp 72 per cent year-on-year increase in June-quarter profit to Rs 5,473 crore, while revenue rose 54 per cent to Rs 24,205 crore. Vedanta Aluminium reported a 216 per cent rise in profit to Rs 5,629 crore, with revenue increasing 46 per cent.
Bajaj Finance also reported strong quarterly numbers, with net interest income rising 23 per cent year-on-year to Rs 12,571 crore and profit increasing 28 per cent to Rs 6,081 crore. These earnings helped keep investors focused on company-specific developments despite uncertainty in global markets.
Oil prices remained another concern for investors. Brent crude rose about 0.3 per cent to around $91 a barrel after a sharp jump in the previous session amid renewed tensions in West Asia. Higher crude prices remain a potential pressure point for India because the country relies heavily on imports to meet its energy needs.
The rupee ended almost unchanged at Rs 95.6775 against the US dollar, compared with Rs 95.6475 in the previous session. The currency’s stability offered some comfort even as investors continued to monitor global interest rates, crude prices and geopolitical developments.
Overall, Thursday’s session reflected a market that was willing to move higher but remained selective. Strong auto earnings, buying in IT and gains in heavyweight stocks helped the Sensex and Nifty finish in positive territory. At the same time, weakness in banks, realty and broader-market stocks showed that investors remained cautious.
With the June-quarter earnings season continuing, domestic results are likely to remain a major driver for individual stocks. At the same time, the Federal Reserve’s rate outlook, crude oil prices, the rupee and developments in West Asia will continue to influence market sentiment in the coming sessions.