Equity benchmarks were trading in a tight range at midday on Thursday, as geopolitical tensions in the West Asia, a divided US Federal Reserve and anticipation of a key US inflation print kept investors on the sidelines. According to Business Standard, the S&P BSE Sensex advanced 89.96 points or 0.11% to 77,744.68, while the Nifty 50 index added 31.15 points or 0.13% to 24,281.35 as of 13:25 IST. The indices have now traded within a band of less than 0.25% for the third consecutive session following the opening move, reflecting a lack of directional momentum. The broader market underperformed with the BSE 150 MidCap Index shedding 0.33% and the BSE 250 SmallCap Index falling 0.64%. Market breadth remained weak with 1,577 shares rising and 2,476 shares falling on the BSE, indicating selective stock-specific action rather than broad-based buying interest.
IT stocks remained the standout performers with the Nifty IT index extending its rally for a fifth straight session, gaining over 1.5 per cent in morning trade. According to Business Standard, Wipro led Nifty 50 gainers, rising 2.50%, followed by Tech Mahindra gaining 2.24%, Infosys rising 1.77%, Coal India climbing 1.61%, and Max Healthcare Institute adding 1.59%. Information technology stocks continued to attract buying interest with TCS emerging as the top gainer, rising 4.46% followed by Eternal (4.23%), Tech Mahindra (3.82%), Nestle India (3%), and Cipla (2.5%). Ashish Chaturmohta, Managing Director and Fund Manager at JM Financial Ltd, explained the sector rotation: "At one point in time, we were very cautious about the entire IT space. But of late, our view has been changing." He noted that the AI Bloomberg Value Chain Index has been seeing correction over the last couple of weeks, with a very strong inverse correlation between this AI Value Chain Index and Indian IT.
Banking stocks continued to underperform the broader market, with ICICI Bank and Axis Bank among the top drags. According to Business Standard, Adani Ports & Special Economic Zone was the top Nifty 50 decliner, falling 3.28%, followed by Shriram Finance dropping 2.19%, Eternal slipping 2.12%, HDFC Life Insurance Company falling 1.50%, and Jio Financial Services declining 1.39%. The 57,300–57,400 zone remains the key resistance, while 56,800 is the immediate support to watch for Bank Nifty.
Several stocks witnessed significant movements based on quarterly results. SML Mahindra hit the 20% upper circuit after its board approved the acquisition of Mahindra & Mahindra's Truck and Bus Division (MTBD) on a slump sale basis for ₹525 crore, subject to working capital adjustments. V-Guard Industries soared 5.71% after the company's consolidated net profit climbed 76.37% to ₹130.25 crore in Q1 FY27 from ₹73.85 crore in Q1 FY26, with revenue increasing 23.5% YoY to ₹1,810.65 crore. MTAR Technologies hit the 5% upper circuit after reporting a sharp jump in earnings with profit after tax surging 364.8% year-on-year to ₹50.2 crore from ₹10.8 crore, while revenue soared 130.4% YoY to ₹360.7 crore. However, Syngene International slumped 5.15% after reporting a net loss of ₹9 crore in Q1 FY27 compared with a profit of ₹87 crore in Q1 FY26, with revenue declining 15.9% YoY to ₹736 crore.
Global markets showed mixed performance amid escalating geopolitical tensions. European markets mostly advanced despite escalating tensions in the U.S.-Iran conflict overnight, while Asian markets struggled for direction on Thursday, nursing steep losses for the week on mounting investor jitters around the AI trade. In the US, the Dow Jones Industrial Average closed 1,153.18 points lower or 2.19% at 51,594.14 for its worst decline since April 2025, while the S&P 500 slid 1.52% to 7,316.15 and the Nasdaq Composite fell 1.74% to 24,442.94, ending more than 10% off its all-time high. The Fed kept interest rates steady with the 10-year Treasury yield jumping 7 basis points to above 4.67% and the 30-year Treasury yield soaring 10 basis points to above 5.2%, hitting its highest level since 2007. Fed Chair Kevin Warsh vowed to contain inflation but declined to offer guidance on future action.
