The Indian stock market took a breather after a record-breaking sprint. Benchmark indices closed almost unchanged on Friday as investors locked in profits at elevated levels, pausing to assess the sustainability of the rally amid key economic data awaited.
The S&P BSE Sensex ended flat, dipping 13.71 points, or 0.02 percent, to settle at 85,706.67. The NSE Nifty 50 also closed flat, down 12.60 points, or 0.05 percent, at 26,202.95. This muted closing came after both indices had scaled fresh all-time highs in the previous session, prompting a natural wave of profit-taking.
A Session of Indecision
The trading session was marked by volatility and a clear lack of directional momentum. After a mildly positive start, the benchmarks struggled to hold gains and oscillated between minor gains and losses throughout the day.
“This consolidation movement continued in the market for the second consecutive session,” noted Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, pointing to the market’s inability to build on Wednesday’s stellar rally. The underlying trend, however, is still considered positive.
Sectoral Dance: Winners and Losers
The market action was a tale of contrasting sectors. Performance was mixed, showing a rotational shift in investor interest.
- Top Gainers: The Nifty Auto index led the charge, rising 0.62%, followed by Pharma and Media, which gained 0.59% and 0.55% respectively. Mahindra & Mahindra (M&M), Adani Enterprises, and Sun Pharma were among the top performers on the Nifty.
- Top Losers: On the losing side, the Nifty Oil & Gas index fell 0.69%, while power and telecom sectors also witnessed selling pressure. SBI Life Insurance, HDFC Life, and Power Grid Corporation were the top drags on the index.
The Driving Forces Behind the Pause
Analysts attributed the flat close to a combination of profit-booking and a cautious stance ahead of macroeconomic data.
- Profit-Booking at Highs: “Markets traded lackluster… taking a breather after hitting a fresh record high,” said Ajit Mishra of Religare Broking. With indices at uncharted territories, it’s common for traders to book partial profits.
- Awaiting GDP Data: The market is in a “wait and watch” mode ahead of the release of India’s Q2 FY26 GDP data. Investors resisted building large positions without fresh macro confirmation, which kept the momentum in check.
Expert Views: Technical and Fundamental Road Ahead
Market experts provided their perspective on where the markets might be headed next.
Technical analysts are watching key levels closely. Sudeep Shah of SBI Securities indicated that the Nifty faces a crucial resistance zone at 26,300–26,350. A decisive break above this zone could trigger the next leg of the rally towards 26,550 and even 26,800. On the downside, immediate support is placed in the 26,150-26,100 zone.
Vatsal Bhuva of LKP Securities added that the RSI on the hourly chart suggests bulls might be taking a pause, and the index could trade in a range for now.
The fundamental outlook remains constructive. “Indian equities stayed resilient, even as selective profit booking emerged,” said Vinod Nair, Head of Research at Geojit Investments. He added that supportive global cues, including expectations of a US Fed rate cut and progress in India-US trade talks, are bolstering investor confidence. The upcoming earnings and macroeconomic data are expected to affirm a positive growth trend.
Broader Market and Global Cues
The broader market mirrored the flat sentiment, with the BSE Midcap and Smallcap indices ending nearly unchanged. Globally, Asian markets were mixed, while European shares edged higher. A major technical outage at the CME Group, which halted futures trading in the US, also created a data void for global investors, adding to the cautious mood.
Looking Ahead
All eyes are now on the domestic macroeconomic data and the subsequent flow of foreign funds.While the record-breaking run has paused, the undertone remains firm. The market is likely gathering steam for its next decisive move, which will be heavily influenced by fresh data points validating India’s growth narrative.
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