Indian stock markets ended on a mixed note on Thursday, with the Nifty closing higher while the Sensex slipped marginally as investors remained cautious after the latest US Federal Reserve rate decision. The 30-share BSE Sensex fell 21.86 points, or 0.03%, to settle at 74,314.59, while the NSE Nifty50 gained 53 points, or 0.23%, to close at 23,270.60.
The session was marked by sharp swings. The Sensex climbed as much as 341 points during the day to touch 74,677.56, while the Nifty also moved above 23,300 before giving up part of its gains. Profit booking at higher levels and concerns over global interest rates kept the recovery in check.
Investors were assessing the impact of the US Federal Reserve’s latest decision to raise interest rates by 25 basis points. The move, along with indications that further tightening could remain possible, kept global markets cautious. Higher US rates can affect foreign investment flows into emerging markets such as India by making dollar assets relatively more attractive.
Crude oil prices remained another concern for domestic investors. Elevated oil prices are particularly important for India because the country imports a large share of its crude requirements. A sustained rise in crude can increase the import bill, put pressure on the rupee and complicate inflation management. Market participants therefore continued to watch oil prices closely.
Despite the cautious mood, buying emerged in several sectors. Auto, metal, media and pharmaceutical stocks were among the stronger performers, while banking and oil and gas stocks faced pressure. The broader market also remained firm, with mid-cap and small-cap indices gaining during the session.
HDFC Life emerged as the standout Nifty gainer, rising around 5%. Tata Motors Passenger Vehicles also gained more than 4%, while SBI Life Insurance advanced over 4%. Bharat Electronics, Dr Reddy’s Laboratories and InterGlobe Aviation were among other stocks that attracted buying interest.
The gains were not broad enough to lift all major stocks. ONGC was the biggest Nifty loser, declining around 1.9%. Titan Company fell about 1.4%, while HDFC Bank dropped around 1.2%. Hindustan Unilever, Coal India and Nestle India also ended lower.
Banking stocks were among the key drags on the market. HDFC Bank and ICICI Bank featured among the major losers, while the Nifty Bank index declined 236.70 points, or 0.42%, to close at 56,055.75. Weakness in heavyweight banking stocks limited the impact of gains in insurance, auto and metal counters.
Tata group stocks, meanwhile, provided support to the broader market. Tata Motors, Tata Steel and Tata Investment gained during the session, with the auto and metal segments benefiting from buying interest. The Nifty Auto index was among the stronger sectoral performers.
Market breadth remained positive despite the subdued headline indices. The gains in mid-cap and small-cap shares indicated that investors were still willing to take selective positions, particularly in stocks that had corrected during the recent market decline. This value buying helped prevent a deeper fall in the benchmark indices.
The National Stock Exchange’s initial public offering also remained a major focus. The ₹22,569-crore NSE IPO opened for subscription on Thursday, adding another layer to the market’s liquidity picture. Strong interest in new issues can divert some investor funds from the secondary market, particularly when several IPOs are open at the same time.
Foreign institutional investor activity continued to be closely watched. Overseas investors have remained sellers in Indian equities, while domestic institutional investors have provided some support. This divergence has helped cushion the impact of foreign selling but has also contributed to volatility in the benchmark indices.
The rupee and global bond yields were also important market indicators. A stronger dollar following the US rate decision could add pressure to emerging-market currencies, including the Indian rupee. Investors are also assessing how higher US borrowing costs could affect global liquidity and capital flows into Indian stocks.
Thursday’s trading showed that investors were not taking a broad-based position in either direction. Instead, buying remained concentrated in selected sectors and stocks, while heavyweight banking, oil and consumer shares faced selling pressure.
The Nifty’s close above 23,250 offered some support after recent volatility, but the index remained below the 23,300 level that investors were watching closely. The Sensex, meanwhile, ended near 74,300 after failing to hold its intraday gains.
Markets are likely to remain sensitive to movements in crude oil, the rupee, foreign fund flows and global interest-rate expectations in the coming sessions. Investors will also track the progress of the NSE IPO and other primary-market offerings.
The mixed close reflected the current mood on Dalal Street: selective buying is providing support, but global monetary policy, elevated oil prices and continued foreign selling are keeping investors cautious.