The Indian stock market demonstrated resilience on Thursday, with the S&P BSE Sensex rising 13.84 points or 0.02% to 74,360.01 and the Nifty 50 index adding 10.95 points or 0.05% to 23,416.55 after a volatile session marked by sharp swings on weekly Sensex F&O expiry. According to CNBC TV18, the Nifty began Thursday's trade on a weak note, opening with another gap-down, but buying interest emerged once the index approached the key support zone of 23,150-23,200, helping it erase early losses and move into positive territory. The benchmark witnessed some intraday volatility thereafter but managed to hold on to its gains and settled near the day's high at 23,416, ending the session marginally higher by 0.05%. As per Religare Broking's Ajit Mishra, markets traded with a cautious tone and ended largely unchanged on the weekly expiry day, with the Nifty attempting a mild recovery but failing to surpass the previous session's high. The indices opened sharply lower — the Nifty gapped down 123 points to 23,282 — before buyers stepped in near the 23,250 support zone and gradually erased losses through the session. As per Business Standard, sentiment remained cautious amid geopolitical tensions in the Middle East and continued foreign institutional investor (FII) selling, with investors staying on the sidelines ahead of the Reserve Bank of India's monetary policy decision on Friday, June 5, 2026. However, reports that the government may remove taxes on foreign portfolio investments in government securities in provided support to the market, with media reports suggesting the proposal has received Cabinet approval and could be implemented through an ordinance.
Broader markets continued to outperform frontline indices, with the Nifty Midcap 100 rising 0.46% to close at 60,966 and the Nifty Smallcap 100 ending in positive territory at 18,121. Market breadth remained healthy with 1,817 stocks advancing against 1,474 declining out of 3,396 traded stocks. According to CNBC TV18, the broader market also remained resilient, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices closing in the green. Among the major laggards in the Nifty pack were Infosys, Bajaj Finserv and Hindalco Industries, which dragged the index during the session, with weakness in select heavyweight stocks capping broader upside in the benchmarks. From the 30-Sensex firms, Titan, Eternal, ITC, Tech Mahindra, State Bank of India and ICICI Bank were among the major gainers, while Infosys, Bajaj Finserv, UltraTech Cement, HCL Tech and Adani Ports were among the laggards. Among the Nifty constituents, Titan and Eternal led the gains, while Infosys and Bajaj Finserv were among the top laggards, as reported by CNBC TV18. Sectorally, Nifty Media and Nifty Consumer Durables outperformed, whereas Nifty Metal and Nifty Cement ended as the weakest pockets of the market, with CNBC TV18 noting that Nifty Metal and Nifty Cement ended as the weakest pockets of the market.
Sectorally, Nifty Consumer Durables and Nifty Media indices emerged as top outperformers, while Nifty IT, Nifty Metal and Nifty Chemical indices underperformed during the session, reflecting pressure in export-linked and commodity-driven segments. On the earnings front, Nifty-50 Q4FY26 earnings growth came in at approximately 6.6% year-on-year — a moderation in large-cap momentum — while mid- and small-cap companies continued to post relatively stronger numbers, reinforcing the divergence visible in index performance. According to Religare Broking's Ajit Mishra, apart from global cues, participants will closely watch the MPC's stance on rates, growth, and inflation for signals amid an uncertain global environment and concerns around a weak monsoon.
From the technical perspective, 23,500 remains the critical decision zone for the short-term trend, with experts noting that a decisive close above this level could improve sentiment and pave the way towards 23,600, followed by 23,800, where significant call writing and supply are visible. On the downside, 23,300–23,350 continues to act as immediate support, followed by the stronger 23,150–23,200 demand zone, which has attracted buying interest repeatedly over the last few sessions. According to CNBC TV18, Nagaraj Shetti of HDFC Securities said the market's ability to rebound from key support levels signals the emergence of buying interest at lower levels. After forming a recent swing low near 23,150, the Nifty could extend its recovery towards the 23,900 mark over the next week. Immediate support is placed at 23,300. Sudeep Shah of SBI Securities believes the 23,550-23,580 zone will act as a crucial hurdle in the near term. A sustained move above this range could strengthen the ongoing pullback rally and open the door for a move towards 23,700. Hitesh Rathi of Angel One said traders are awaiting fresh triggers, with the RBI policy outcome likely to act as the next major catalyst for market direction. A breakout above the 23,500-23,550 resistance band could reignite bullish momentum, while a breach below the 23,150-23,100 support zone may tilt the balance back in favour of the bears. Rupak De of LKP Securities said that the Nifty continues to trade below its 20-day exponential moving average, indicating that underlying weakness persists despite the recent rebound. The recovery from the crucial support area, which coincides with the upside gap formed on April 8, indicates that buyers continue to defend lower levels despite prevailing uncertainty.
Media reports suggested that the government may scrap capital gains tax on foreign portfolio investors' (FPIs) investments in government securities, with the proposal having received Cabinet approval and potentially implemented through an ordinance. According to Business Standard, foreign investors currently pay a 12.5% long-term capital gains tax on listed bonds held for more than 12 months and may also be subject to a 20% withholding tax on interest income. The proposed tax relief is aimed at attracting overseas capital into India's debt market, supporting the rupee and enhancing the appeal of Indian government bonds at a time of heightened global uncertainty and foreign equity outflows. This development comes as FIIs have net sold ₹8,363 crore worth of shares on June 2, 2026, with FIIs' open interest (OI) in Nifty having increased by over 40% or 60,046 Lots in the first four trading sessions of the June series. The government also approved an ordinance easing tax norms for select foreign investors during the session, providing additional support to the market. Globally, markets will continue to monitor developments in the US-Iran negotiations, as any breakthrough could ease concerns over crude oil supply disruptions, with persistent FII selling remaining a key headwind for domestic equities.
