The key equity indices ended nearly flat on Thursday after a volatile session that saw Nifty 50 settle at 23,654.70, down just 4.30 points or 0.02%, while the Sensex fell 135.03 points or 0.18% to close at 75,183.36. According to The Hindu BusinessLine, the indices opened with a gap-up of 171 points, buoyed by positive global sentiment following Nvidia's earnings and tentative progress in US-Iran negotiations, but selling pressure emerged steadily from the 23,850 zone and persisted through the session. The reversal underscored a market still caught between pockets of optimism and stubborn macro headwinds, with over 200 points wiped out from intraday highs as broad-based profit booking took hold.
The standout performance of the session was the rupee, which snapped a nine-day losing streak to appreciate 62 paise against the dollar, making it Asia's best-performing currency on the day. As reported by The Hindu BusinessLine, the recovery was aided by a pullback in crude oil prices and RBI intervention measures. However, the rupee had earlier breached the 96.50 per dollar mark, and elevated Brent crude continues to exert pressure on India's import bill, current account, and inflation trajectory. The yield on India's 10-year benchmark federal paper declined 0.07% to 7.074% compared with the previous session close of 7.079, providing some relief to market participants.
According to The Hindu BusinessLine, Realty, Cement, Consumer Durables, and Healthcare ended with gains, while IT, FMCG, and Media faced selling pressure. Despite the broader market weakness, Nifty Smallcap 100 advanced 0.63% and Nifty Midcap 100 ended marginally lower by 0.04%, with market breadth staying positive for the third consecutive session as the BSE advance-decline ratio stood at 1.37 and 290 stocks in the Nifty 500 ended in the green. Notable laggards included Bajaj Finance, Hindustan Unilever, and Tech Mahindra, while Grasim, IndiGo, and Apollo Hospitals topped the gainers list. The current rupee weakness is creating sharp market rotations, with airlines among the biggest casualties due to their heavy dollar-linked cost structures, while IT and pharma exporters may quietly emerge as the biggest winners of the currency crisis.
As reported by The Hindu BusinessLine, Bajaj Finserv AMC's fixed income head Siddharth Chaudhary noted that "growth moderation is expected to anchor yields, while supportive liquidity should prevent any disorderly rise in rates," signalling that the RBI is likely to hold rates even as external pressures mount. The India VIX declined 3.35% to close at 17.82, indicating that volatility expectations eased despite weak market sentiment. FPI outflows, while moderating to ₹70,000 crore in April from ₹1.2 lakh crore in March, continue to weigh on sentiment. Looking ahead, markets face a packed agenda with the first quarter CY2026 GDP growth rate due, and all eyes remain on the RBI's June monetary policy decision, progress in US-Iran talks, and crude oil price direction. Until a decisive close above the 23,800–24,000 resistance band is established, analysts expect the market to remain range-bound with a stock-specific approach likely to dominate.
According to The Hindu BusinessLine, global sentiment remained subdued after weak PMI readings from Europe pointed to slowing economic activity in the UK and France. Asian markets mostly ended lower despite overnight gains on Wall Street, where investors drew comfort from reports suggesting progress in US-Iran negotiations. Japan emerged as an exception, with the Nikkei surging over 3% following strong export data driven by semiconductor demand. Commodity markets witnessed mild weakness, with gold futures on the MCX declining 0.29% to ₹1,59,538 per 10 grams and Brent crude futures slipping below $105 a barrel amid hopes of easing geopolitical tensions in West Asia. Corporate earnings remained the key stock-specific trigger, with Honeywell Automation India soaring nearly 16% after reporting strong quarterly profit growth and Aurionpro Solutions rising after securing a major fintech contract expected to generate over $33 million in revenues over three years.
