Sensex and Nifty Marginally Lower Amid Sector Rotation and Profit Booking
Indian equity benchmarks exhibited choppy trading on Thursday, with the Sensex falling by 149.97 points to 81,180.59 and the Nifty 50 slipping 15.70 points to 24,651.20 by early afternoon. Market sentiment remained cautious as sector rotation and profit booking continued to weigh on broader indices, keeping the market in a consolidation phase. The volatility index (India VIX) stood steady at 17.34, signaling sustained volatility risk amid mixed domestic and global cues.
Analysts noted that consolidation is likely to persist in the near term due to ongoing profit booking and sector rotation. The small- and mid-cap segments managed marginal gains, reflecting selective buying interest. Despite the broad-based consolidation, key sectors such as metals and defence showed resilience, benefiting from easing geopolitical tensions and positive global developments.
Highlights:
Sensex down 149.97 points (0.18%) at 81,180.59; Nifty down 15.70 points (0.06%) at 24,651.20.
Sector rotation and profit booking continue to cap gains.
Smallcap and midcap stocks trade with modest gains.
India VIX steady at 17.34, indicating persistent volatility.
Sectoral Performance: Metals, Defence, and Realty Lead Gains
Sectoral indices painted a mixed picture as metal, media, and realty stocks surged over 1%, while banking and IT sectors underperformed. The metal sector benefited from the easing trade tensions between the US and China, attracting fresh investor interest and driving shares higher.
Defence stocks recorded notable gains amid rising Indo-Pakistan geopolitical tensions, with names like Astra Microwave Products, Cochin Shipyard, Garden Reach Shipbuilders & Engineers (GRSE), and Paras Defence surging between 3% and 8%. The defence index was trading up by 2% during the afternoon session, reflecting heightened risk-off sentiment in favor of defence plays.
Realty stocks also advanced, supported by improving sector fundamentals and robust domestic demand indicators.
Highlights:
Metal, media, and realty sectors gained over 1%.
Banking and IT sectors slipped amid profit booking.
Defence stocks rallied 3-8% amid geopolitical concerns.
Easing US-China trade tensions bolster metal sector outlook.
Top Gainers and Losers: Hero Motocorp and Tata Motors Lead Upside
Among individual stocks, Hero Motocorp topped the gainers’ list with a sharp 4.73% rise to ₹4,259.40, buoyed by strong Q4 performance. Tata Motors followed suit, climbing 2.84% to ₹718.80, supported by healthy volume growth and new launches.
JSW Steel shares gained 2.61% to ₹1,015.10, riding the momentum in the metal sector. Shriram Finance and Adani Ports also posted gains of 1.66% and 1.14%, respectively, as investors favored financial and infrastructure plays.
On the downside, Power Grid Corporation fell 1.54% to ₹291.40 amid profit booking. Pharmaceutical major Cipla declined 1.24% to ₹1,476.30. Banking counters including IndusInd Bank, NTPC, and Kotak Mahindra Bank dropped around 1%, pressured by concerns including an internal audit probe into IndusInd’s accounting practices.
Highlights:
Hero Motocorp surged 4.73% on strong Q4 results.
Tata Motors and JSW Steel advanced 2.84% and 2.61% respectively.
Power Grid, Cipla, IndusInd Bank, NTPC, and Kotak Mahindra Bank declined about 1-1.5%.
IndusInd Bank under pressure amid audit probe news.
Defence and Midcap Stocks Attract Attention Amid Geopolitical and Earnings Factors
Shares in the defence sector outperformed, reflecting geopolitical sensitivities and increased defence spending. Key players such as Astra Microwave Products and Cochin Shipyard gained momentum ahead of their Q4 results. Cochin Shipyard’s shares soared as investors anticipated robust earnings growth.
Among midcap stocks, IRB Infrastructure, National Aluminium, KPIT Technologies, and Yes Bank rose over 3%, supported by positive earnings outlooks and sector-specific catalysts. Smallcaps like Ramkrishna Forgings, KEC International, Zen Technologies, and JBM Auto posted gains between 5% and 7%, indicating selective buying in riskier segments.
Conversely, Muthoot Finance tumbled 7% despite a strong Q4 performance, weighed down by investor concerns over the Reserve Bank of India’s draft regulations on loan-to-value (LTV) norms for gold loans.
Highlights:
Defence stocks gained 3-8% amid geopolitical developments.
Midcap and smallcap stocks witnessed selective buying, with gains of 3-7%.
Muthoot Finance declined 7% due to regulatory concerns.
Earnings and sectoral developments remain key drivers.
Broader Market Participation and Volume Trends
Trading activity remained healthy with a total of 2,845 stocks changing hands on the National Stock Exchange by mid-afternoon. Of these, 1,841 advanced while 930 declined, suggesting a moderately positive breadth despite the overall consolidation.
Notably, 147 stocks including Garware Hi-tech, Pokarna, Essar Shipping, and HEC Projects hit their upper circuit limits, while 19 stocks touched lower circuit levels. Additionally, 48 companies including Bharat Electronics Limited (BEL), Aster DM Healthcare, Dalmia Bharat, and JK Cement marked fresh 52-week highs, underscoring pockets of strength within the broader market.
Highlights:
NSE traded 2,845 stocks; 1,841 advanced, 930 declined.
147 stocks hit upper circuits; 19 stocks hit lower circuits.
48 stocks reached 52-week highs, reflecting selective market strength.
