Stock Market Ends Flat as Cautious Sentiment Prevails; NBFC Stocks See Strong Rally
Indian stock markets remained range-bound on Thursday, with the benchmark indices trading within narrow bands as investor sentiment stayed cautious.
Mumbai: Indian stock markets remained range-bound on Thursday, with the benchmark indices trading within narrow bands as investor sentiment stayed cautious.
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Sensex and Nifty Hover Within Narrow Ranges
The Sensex experienced fluctuations during intra-day trading, reaching a high of 74,834 and a low of 74,521, before closing almost unchanged at 74,612, gaining just 10 points.
Similarly, the Nifty moved within a 100-point range, hitting a high of 22,613 and a low of 22,508, before settling nearly flat at 22,545 on its expiry.
“Nifty remained range-bound during the day, with sellers continuing to dominate at higher levels,” said Rupak De from LKP Securities. “On the lower end, 22,500 continues to act as support, similar to how 22,800 did a few days ago. If it falls below 22,500, we expect Nifty to decline towards 22,200 and lower,” he added.
NBFC Stocks Shine Amidst Broader Market Pressure
Among the Sensex stocks, Bajaj Finance and Bajaj Finserv led the gains, each rising over 2%. Other notable gainers included IndusInd Bank, HDFC Bank, Zomato, and Axis Bank, which saw gains of more than 1% each.
On the other hand, UltraTech Cement faced a sharp decline of nearly 5% after announcing its entry into the wires and cables business. Other major losers included Mahindra & Mahindra, Tata Motors, Tech Mahindra, HCL Technologies, Hindustan Unilever, and NTPC.
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The broader market saw selling pressure, with the BSE MidCap index dropping by 1% and the SmallCap index slipping more than 2%.
NBFCs and MFIs Attract Strong Buying Interest
Non-Banking Financial Companies (NBFCs) and Micro-Finance Institutions (MFIs) saw significant buying interest during the session. Stocks like CreditAccess Grameen, L&T Finance, and Mahindra & Mahindra Finance surged by up to 15% after the Reserve Bank of India (RBI) reduced the risk weights on MFI loans and loans extended to NBFCs.
Subdued Market Participation Amid Uncertainty
Despite the positive movement in certain sectors, investor participation remained subdued due to uncertainty about the market’s direction.
The Indian Rupee traded flat near 87.17 after experiencing high volatility. It weakened to 87.54 before recovering to 87.10 during the session.
“The session ended on a neutral note, with the dollar index remaining range-bound, and FII sell-offs being countered by DII inflows, helping stabilize the secondary markets,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities. He added that the rupee’s movement going forward would depend on global cues, dollar momentum, and oil price trends.
