The Indian stock market ended with minor gains in a volatile session on Thursday as lower crude oil prices improved sentiment, with buying led by banking and financial stocks.
The Sensex closed 31.61 points, or 0.04%, higher at 81,911.01, while the Nifty 50 settled 44.30 points, or 0.18%, higher at 25,299.35. The Bank Nifty index jumped 726.10 points, or 1.19%, to end at 61,518.50.
Broader markets outperformed, as the Nifty Smallcap 100 index rallied 1.12% and the Nifty Midcap 100 index gained 0.85%.
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Among sectors, Nifty Realty was the top gainer with 4.5% rally, followed by Nifty Media, Nifty PSU Bank and Nifty Financial Services. In contrast, selling was seen in Nifty Auto, Nifty FMCG, Nifty IT, Nifty Metal and Nifty Pharma indices.
Investors remianed cautious over the October CPI inflation data scheduled to be released later today. A higher-than-expected inflation print could reinforce concerns over further repo rate hikes by the Reserve Bank of India (RBI), while a softer reading may offer some relief to market sentiment.
“Going forward, sustained foreign inflows, currency stability, crude oil movements and Q2 earnings will be crucial in determining market direction. Selective stock-specific opportunities remain favourable amid near-term consolidation,” said Vikram Kasat - Chief Business Officer – Advisory and Dealing at PL Capital.
Meanwhile, crude oil prices edged lower, offering some relief on the domestic macroeconomic front, with the Brent oil price falling below $92 a barrel.
Meanwhile, strong foreign inflows remained the key support, reinforcing a large-cap financial rotation rather than broad index chasing. Mid- and small-caps outperformed, signalling firmer underlying risk appetite despite muted benchmarks.
“Softer crude provided macro relief, though global technology volatility and a hotter-than-expected US inflation print kept global yields and rate expectations in focus, limiting scope for broader rerating. Domestically, attention now shifts to India's October CPI, where the trajectory of food prices will be critical following elevated September inflation,” said Vinod Nair, Head of Research, Geojit Investments.
According to him, the market should remain selectively constructive in the near term, with direction hinging on sustained foreign liquidity, inflation trends and whether financial-led gains broaden without stretching valuations.
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