India’s benchmark equity index, the Nifty 50 (.NSEI), reversed early losses and turned positive in mid-morning trade on Thursday, climbing 0.15% to signal renewed investor confidence despite lingering global headwinds. The modest uptick comes after a cautious start to the day, with traders initially bracing for volatility following mixed cues from global markets and ongoing concerns around tech earnings and macroeconomic data.
At approximately 9:45 AM IST, the Nifty 50 was trading at 24,749, up from its previous close of 24,712, marking a turnaround from its pre-open dip of 0.14%. The index’s recovery was led by gains in auto, FMCG, and select banking stocks, while IT and metals remained under pressure.
Market Sentiment: From Hesitation to Hope
The early softness in the index was attributed to profit booking and technical resistance near the 24,900–25,000 zone. However, as the session progressed, bargain hunting and short-covering lifted sentiment. Analysts noted that the index found support near 24,680, a level that has historically acted as a cushion during pullbacks.
Investor mood was also buoyed by expectations of strong domestic consumption data and optimism around India’s Q2 GDP figures, which are due next week. The broader market showed signs of resilience, with midcap and smallcap indices also edging higher.
Sectoral Snapshot: Auto and FMCG Lead the Charge
Among the top gainers were Hero MotoCorp, Maruti Suzuki, and Eicher Motors, which rose between 1.5% and 3%, driven by strong monthly sales data and festive season demand projections. FMCG majors like Hindustan Unilever and ITC also posted gains, supported by stable input costs and rural demand recovery.
Banking stocks showed mixed performance. Axis Bank and ICICI Bank edged higher, while HDFC Bank remained flat. The Nifty Bank index was up 0.12%, contributing to the overall recovery.
On the flip side, IT heavyweights such as Infosys, Tech Mahindra, and LTIMindtree continued to face selling pressure amid concerns over global tech spending and cautious guidance from U.S. firms. Metal stocks also lagged, with Tata Steel and JSW Steel slipping marginally due to weak commodity price trends.
Global Cues: Mixed Signals from Wall Street and Asia
Overnight, U.S. markets closed flat ahead of Nvidia’s earnings report, which investors are watching closely for signs of sustainability in the AI-driven rally. Asian markets opened mixed, with Japan’s Nikkei down 0.3% and Hong Kong’s Hang Seng up 0.2%, reflecting cautious optimism.
The GIFT Nifty, which serves as an early indicator of Indian market sentiment, had signaled a flat to slightly positive start, aligning with the actual movement seen in the Nifty 50.
Technical View: Support Holds, Resistance in Sight
Technical analysts suggest that the Nifty 50’s ability to hold above 24,700 is a positive sign. A sustained move above 24,850 could open the door to a retest of 25,000, while failure to hold support may lead to consolidation around 24,600–24,650.
Momentum indicators like RSI and MACD remain neutral, indicating that the index is in a wait-and-watch phase. Traders are advised to maintain a stock-specific approach and avoid aggressive positions until a clear breakout emerges.
Outlook: Eyes on GDP Data and Global Earnings
With India’s Q2 GDP data expected next week and global tech earnings in focus, markets may remain volatile in the short term. However, strong domestic fundamentals, easing inflation, and robust corporate earnings continue to support the medium-term bullish outlook.
Foreign institutional investors (FIIs) have turned net buyers in recent sessions, adding to the positive sentiment. Domestic institutional investors (DIIs) also remain active, providing a cushion against global uncertainty.
Sources: TradingView India, Trading Economics, The Economic Times
