Benchmark indices Sensex and Nifty ended Thursday’s trade with slim losses, overshadowed by robust gains in midcap and smallcap segments. Sensex closed at 82,118 after losing 127 points (0.16%), while Nifty 50 was down 58 points (0.23%) at 25,124. The market’s split personality reflected divergent investor strategies across market caps.
Largecap selling concentrated in financials and metals. HDFC Bank (-1.3%), ICICI Bank (-1%) and Bajaj Finance (-1.8%) led declines, with Nifty Financial Services index dropping 0.9%. Metal stocks weakened too on China demand worries, with Tata Steel down 1.2%.
Midcap bulls charged aggressively as BSE Midcap index surged 0.85%. Key movers included Polycab India (+4.2%), BEML (+3.7%) and Bharat Dynamics (+3.1%), fueled by defence and infra spending hopes. Smallcaps outperformed further with 1.1% gains.
Market participants maintained cautious stance ahead of critical macro events. ‘Profit booking in largecaps created buying opportunities in midcaps with strong fundamentals,’ said G Chokkalingam, Founder of Equinomics Research. India VIX eased 1.5% to 13.8 levels, signaling reduced fear gauge.
With Q2 earnings curtain-raiser just days away, focus sharpens on IT and banking results. Rupee appreciated 4 paise to 84.41/$, providing currency tailwind. Overall sentiment stays constructive given domestic macro resilience and anticipated Fed pause on rates.