Indian benchmark indices closed higher on Thursday, with Sensex gaining 274 points and Nifty 50 settling at 24,317, up 67 points or 0.28 per cent, after experiencing a volatile session marked by escalating West Asia tensions and geopolitical uncertainties. According to The Economic Times, the recovery came despite Brent crude nearing the $90 mark and renewed geopolitical concerns that kept investors treading carefully. The indices held above the 20-day simple moving average through the session, providing a technically positive signal, though broader markets lagged significantly, with Nifty Smallcap 100 and Nifty Midcap 100 indices falling up to 0.6 per cent. This represents a significant improvement from Wednesday's strong performance, where Indian equity markets opened with a strong gap-up and extended gains throughout the session, with Sensex gaining 889 points and Nifty topping 24,250, adding over ₹4 lakh crore in market value.
On the monetary policy front, the US Fed meeting ended on Wednesday leaving its benchmark interest rate unchanged at 3.50%–3.75%, while the split among policymakers reinforced expectations that the path of future rate cuts remains highly data dependent. As reported by The Economic Times, Vinod Nair, Head of Research at Geojit Investments, noted that "the Fed's decision to maintain the status quo on rates was largely anticipated, but hawkishness remained due to continued emphasis on inflation control." The decision marked the fifth consecutive policy meeting at which the central bank left rates unchanged while assessing the trajectory of inflation and the broader economy. However, a growing number of policymakers indicated a potential rate hike later this year, as reported by The Economic Times, which has dampened market sentiment. The Fed also retained its projections for inflation, unemployment, and economic growth largely in line with its June forecasts. In the aftermath of the decision, gold prices advanced as investors adopted a more defensive stance amid continued uncertainty over the interest-rate outlook and geopolitical risks.
Mahindra & Mahindra, Coal India and Maruti Suzuki emerged as the top gainers on the Nifty index, helping the benchmark maintain positive territory despite a mixed market trend, as reported by The Economic Times. Automobiles emerged as the standout sector, rising over 1.76 per cent, driven in part by Mahindra & Mahindra's stronger-than-expected Q1FY27 results, as reported by The Hindu BusinessLine. IT stocks extended their recent rally, even as Asian semiconductor and AI-related technology stocks remained under pressure. However, realty was the biggest drag, losing around 2 per cent, with pharma also under pressure. The positive momentum was supported by domestic earnings providing a floor despite external uncertainties. Strong IIP data, IT and metal buying, bullish technical indicators and improving FII sentiment continued to outweigh geopolitical concerns and higher oil prices, with foreign portfolio investors maintaining their net buying stance throughout the session. According to The Economic Times, as a result, domestic equities remained range-bound with sharp intraday swings, as investors weighed global headwinds against resilient domestic fundamentals.
According to Rupak De, Senior Technical Analyst at LKP Securities, the Nifty remained largely range-bound as the index failed to give a clear directional move, with the index sustaining above the critical 50 EMA on the daily timeframe. As reported by The Economic Times, the RSI is in a bullish crossover and continues to trend higher, supported by a rising trendline, with sentiment likely to remain positive in the short term. The analyst noted that the potential to rise towards 24,500 exists, while immediate support is placed at 24,200, below which the index might lose its current momentum. This aligns with previous technical analysis from Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, who highlighted that the Nifty 50 index gained strength, sustaining above the important 50-EMA level near the 23,991 zone, with the index currently closing above the 24,200 level.
The rupee snapped a four-day winning streak, with bargain hunters breaking the rupee's momentum due to late-session demand for the US dollar, as noted by Dilip Parmar, Senior Research Analyst at HDFC Securities. The spot USD/INR remains ranged between support at 85.50 and resistance at 85.85. In commodities, MCX Gold futures opened at ₹1,41,925, finding support above the 200-DEMA with a bullish hammer formation, with key resistance lying at ₹1,43,350–1,45,000. Silver resumed at ₹2,16,389, trading below key moving averages but showing long buildup, with a moderately bullish near-term outlook. Natural gas rebounded 0.92 per cent in the previous session from ₹257 levels and opened flat at ₹263, with Europe's winter supply risks and regional heatwaves lending support.
