The BSE Sensex advanced 123.42 points, or 0.15%, to settle at 82,515.14, while the NSE Nifty eked out a gain of 37.15 points, or 0.15% to close at 25,141.40.
Sector Watch
IT stocks led the market gains on the day, with the Nifty IT index rising 1.3%, marking its sixth straight session of gains, as optimism around U.S. trade talks lifted sentiment.
Shares of HCL Technologies, Tech Mahindra, Infosys, and Wipro advanced between 1.6% and 3.2%.
On the Sensex, HCL Technologies, Infosys, Tech Mahindra, Reliance Industries, and Bajaj Finserv were among the top performers, gaining between 0.7% and 3%.
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Progress in U.S.-led trade negotiations provided a tailwind for risk assets. In London, Washington and Beijing negotiators said they had “agreed a framework on trade” to present to their respective leaders.Meanwhile, Reuters reported that Indian and U.S. officials made headway in bilateral talks in New Delhi, covering industrial goods, agriculture, tariff cuts, and non-tariff barriers.However, gains in the broader market were capped by selling in financials. The Nifty Financial Services and Nifty Bank indices both slipped 0.3%, as profit-booking continued following recent record highs driven by the RBI’s steep rate cut.
Among other notable movers, liquor stocks came under pressure after Maharashtra raised excise duties on Indian Made Foreign Liquor. Radico Khaitan dropped 3.8%, while United Spirits sank 6.6%.
Shares of BSE Ltd fell 4% after the NSE placed the stock under the Additional Surveillance Measure (ASM) framework, prompting investor caution and triggering a 100% margin requirement on trades.
Meanwhile, broader market indices retreated. The Nifty Smallcap 100 and Nifty Midcap 100 declined around 0.5% each, snapping seven-day and five-day winning streaks, respectively.
Expert View
Profit booking continues in the broader markets, driven by elevated domestic valuations, said Vinod Nair, Head of Research, Geojit Investments, adding that “however, large-cap resilience is supporting the indices, with institutional investors favouring companies with stable earnings outlooks.”
The Auto and IT sectors remain in focus—Auto stocks are gaining on improved monthly sales, while IT are benefiting from optimism around a potential U.S.-China trade resolution, said Nair.
The Nifty remained volatile throughout the day before closing flat, but the overall sentiment remains positive as the index continues to hold above the breakout point, said Rupak De, Senior Technical Analyst at LKP Securities, adding that “a golden crossover is in place, which supports the bullish outlook.”
“Any dip should be viewed as a buying opportunity. Crucial support is placed at 24,850. As long as the index holds above this level, the trend is likely to remain positive, with potential to move towards 25,350 in the short term,” said De.
