Indian equity benchmarks ended the session with a marginal gain, with the Nifty closing up 0.02%, as selling pressure in information technology stocks capped the upside amid profit booking. Market activity remained cautious ahead of the weekly derivatives expiry, keeping volatility elevated through the session.
According to Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, broader markets were relatively resilient, with the Nifty Midcap 100 ending flat, while the Nifty Smallcap 100 advanced 0.4 percent, reflecting selective buying interest. Sectoral performance was also mixed. Nifty Media emerged as the top gainer, rising +0.8%, while Nifty Metal added 0.5%, supported by broad-based buying across both ferrous and non-ferrous stocks. Metal stocks extended their rally for the fifth consecutive session.
On the downside, Nifty IT declined 0.8% as investors booked profits after four straight sessions of gains. The Nifty PSU Bank index also ended lower, down 0.4%, adding to the overall subdued tone in select pockets of the market.
On the policy front, sentiment was supported by India announcing the conclusion of a Free Trade Agreement with New Zealand, which allows duty-free entry of Indian goods into New Zealand and includes a planned investment inflow of $20 billion over the next 15 years.
Looking ahead, markets will track key global economic data, including US durable goods orders and gross domestic product figures later today, followed by initial jobless claims tomorrow. Overall, we expect trading volumes to remain subdued during the holiday-shortened week, with markets likely to consolidate at higher levels and remain steady, supported by favourable global cues.
