Muted session for Indian stock market as Sensex and Nifty post marginal gains amid weak FII flows and political uncertainty.
Indian stock markets wrapped up Thursday’s session with slight gains, reflecting a pause after a strong three-day rally. The indices moved within a narrow range throughout the day as investors booked profits and stayed cautious ahead of the Bihar assembly election results.
Soft Opening, Range-Bound Trade
The trading session began on a muted note. The BSE Sensex opened at 84,515.33, about 48 points higher, and the Nifty 50 started above 25,847, slipping 28 points lower. Despite early optimism, both benchmarks traded sideways as investors avoided taking large positions.
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At the close, the Sensex settled at 84,478.67, rising 12 points, and the Nifty finished at 25,879.15, up around 3 to 4 points. Market analysts described the session as a “pause day,” following consecutive gains earlier in the week.
Domestic and international cues shaped the market’s direction. Data showing a sharp fall in India’s retail inflation to 0.25% in October lifted sentiment and strengthened expectations that the Reserve Bank of India (RBI) will maintain a supportive stance for growth.
Optimism about a potential India–U.S. trade deal also helped cushion the downside, as investors anticipated reduced tariffs and stronger bilateral trade opportunities. Yet, persistent foreign institutional investor (FII) outflows and stretched valuations curbed enthusiasm, keeping the market movement limited.
Global developments added a mild positive tone. Easing fears over a U.S. government shutdown and improving risk appetite in global markets encouraged traders but were not enough to trigger a major rally.
Political Uncertainty Keeps Traders Guarded
Upcoming Bihar election results emerged as a key factor behind investor restraint. Political observers warned that any unexpected outcome could stir short-term volatility. Market participants therefore preferred a defensive approach, waiting for clearer political signals before making fresh bets.
Top Gainers and Losers
Among Sensex constituents, Asian Paints, ICICI Bank, Power Grid, L&T, and Bajaj Finserv recorded notable gains, providing some support to the index.
In contrast, Reliance Industries, Kotak Mahindra Bank, Titan Company, HDFC Bank, and State Bank of India witnessed selling pressure and weighed on overall performance.
Key Drivers to Watch Ahead
Market experts highlighted several elements that could guide movement in the coming sessions:
- Bihar Election Outcome: Political clarity is expected to influence near-term sentiment.
- India–U.S. Trade Negotiations: Progress on tariff discussions may boost optimism.
- RBI’s Policy Outlook: With inflation easing sharply, investors await clues on interest-rate direction.
- FII Activity: Continued foreign selling could limit upside momentum.
- Valuation Levels: Indices remain near record highs, leaving little room for aggressive buying.
Analysts viewed Thursday’s flat close as a phase of consolidation rather than weakness. Encouraging inflation data, improving global cues, and trade optimism continue to support the underlying tone, yet participants remain cautious due to rich valuations and political uncertainty.
Until fresh catalysts emerge, traders expect both the Sensex and Nifty to trade in a tight range. A significant breakout is likely only after clarity on policy moves or election outcomes.
FAQs
- What were today’s closing levels?
The Sensex ended at 84,478.67, up 12 points, and the Nifty closed at 25,879.15, up around 3 to 4 points. - Why did markets remain largely unchanged?
Profit-booking and caution ahead of the Bihar elections limited gains, even as inflation data and global cues stayed positive. - Which sectors performed better?
Banks, infrastructure, and paint stocks such as ICICI Bank, L&T, and Asian Paints supported the market. - What is the key domestic factor influencing sentiment?
The sharp decline in retail inflation to 0.25% in October has reinforced confidence in a growth-friendly RBI policy stance. - What global factors affected Indian markets?
Improving global risk sentiment and easing concerns about a U.S. government shutdown contributed to market stability.
