Indian equity benchmarks ended Thursday's session with mixed performance, as the Nifty 50 closed below the crucial 24,400 level at 24,396, marking a continued decline from Wednesday's close. The BSE Sensex gained 114 points to close at 78,080, reflecting the broader market weakness. Foreign institutional investors (FIIs) extended their selling streak for the second consecutive day, offloading shares worth ₹510.69 crore on Thursday, following Wednesday's outflow of ₹1,002.50 crore. However, domestic institutional investors (DIIs) stepped up their buying activity significantly, recording net purchases of ₹4,353.09 crore in equities, with DIIs buying equities worth ₹16,565.14 crore while selling ₹12,212.05 crore worth of shares. The combined institutional inflow of ₹4,353.09 crore helped cushion the market impact, with FIIs buying equities worth ₹14,492.46 crore while selling ₹15,003.15 crore worth of shares.
The renewed geopolitical uncertainty has triggered a rebound in crude oil prices, with WTI crude oil continuing to hold gains near the $82-per-barrel mark as uncertainty surrounding the Strait of Hormuz negotiations kept a geopolitical risk premium embedded in energy prices. However, crude oil prices fell nearly 8% to $87 a barrel this week, easing input-cost concerns for the broader economy as geopolitical tensions between the US and Iran lifted sentiment meaningfully. As reported by Live Mint, investor sentiment remains restrained as negotiations appear to have entered a more complex phase, with US President Donald Trump calling for compensation from Iran while Tehran has reiterated conditions for reopening the Strait of Hormuz, raising doubts over the timing and durability of any potential agreement.
According to Vaishali Parekh's analysis reported by Live Mint, a decisive move above the important 200-period MA at the 24,700 zone is necessary to trigger a breakout rally in the Nifty 50. The near-term important support is positioned near the 24,400 level, which needs to be sustained to maintain the overall bias. For Bank Nifty, the key benchmark index continues to struggle with a tight, narrow range-bound session, closing on a flat note near the 57,635 level, just sustaining above the important 200-period MA at the 57,500 level. Latest technical analysis reveals the Nifty's ability to sustain above 24,400 keeps the recovery structure intact, while a break below 24,300 could weaken momentum. On the upside, 24,750 remains the immediate hurdle; a sustained move above this level could pave the way towards 24,950, with resistance positioned around 24,800.
FIIs remained net sellers for a second straight day, extending their outflow streak, while DIIs continued their buying momentum that has now run for months. The rupee closed at ₹95.44 against the US dollar on Thursday, weakening from Wednesday's close of ₹95.33 per dollar. The US Dollar Index held below the 100 mark, while the 10-year US bond yield stayed under 4.7%, both supportive of emerging-market equities. Better-than-expected Q1 earnings, robust auto sales numbers, and a balanced RBI monetary policy stance emerged as the week's key positive drivers, with the Nifty Smallcap and Midcap indices scaling fresh record highs.
The Nifty Bank index fell 251 points to 57,635, while the midcap index rose 97 points to 64,122, with market breadth remaining largely neutral at an advance-decline ratio of around 1:1. Hindalco emerged as the top Nifty loser, while UltraTech Cement and Grasim Industries also ended nearly 2% lower due to concerns around royalty payments for the Aditya Birla Group brand. Several stocks saw sharp moves following their quarterly results, with Astral and Sonal Industries rising around 8% each after reporting better-than-expected Q1 results, while Page Industries slipped nearly 5% after earnings missed expectations and NALCO fell nearly 5% as aluminium prices declined overnight. The fund-flow trend shows continued divergence between foreign and domestic institutional activity, with DIIs absorbing the selling pressure from FIIs during the session.
