Indian equity markets were trading largely flat on Thursday as investors took a pause after Wednesday’s strong rally. Around 11:25 AM IST, the Sensex was at 77,671.66, up 17 points, while the Nifty 50 was at 24,266.75, higher by 17 points. IT stocks were the key factors leading the gains, but weakness in banking, realty and several large-cap stocks kept the broader market under pressure. Market breadth also remained weak, with more stocks declining than advancing. 

1. Fed Keeps Interest Rates Unchanged, But Hawkish Tone Creates Caution

The US Federal Reserve kept interest rates unchanged at its latest meeting, as markets had largely expected. However, the decision came with a 9-3 split, with three policymakers favouring a rate hike to tackle inflation. Fed Chair Kevin Warsh also stressed the need to bring inflation down. This has created uncertainty over the future rate path and limited the upside in global markets, including India. 

2. IT Stocks Continue to Lead the Market

IT stocks are providing the biggest support to the Indian benchmarks today. The Nifty IT index was up around 1.4%, while stocks such as Wipro, Infosys, Tech Mahindra and HCL Technologies were among the key gainers. The sector is benefiting from a shift in global investor interest after the sharp fall in Asian semiconductor and AI-linked stocks. India’s lower exposure to chip companies has made its IT sector relatively attractive. 

3. Crude Oil Prices Ease After Wednesday’s Sharp Rise

Crude oil prices slipped on Thursday after Brent had jumped sharply in the previous session. Brent fell about 1.3% as some oil tankers continued to leave the Middle East, reducing immediate fears of a major supply disruption. The fall in oil prices is helpful for India because cheaper crude can reduce pressure on inflation and the country’s import bill. However, geopolitical risks remain an important concern for investors. 

4. Banking and Realty Stocks Weigh on the Market

The gains in IT stocks are being partly cancelled out by weakness in banking and realty shares. Around late morning, the Nifty Realty index was down more than 1%, while the private and PSU banking indices were also trading lower. ICICI Bank, Axis Bank, Shriram Finance and other financial names were among the stocks putting pressure on the benchmarks. This has kept the indices close to flat levels despite strong buying in technology stocks.

5. Investors Remain Focused on Earnings and Stock-Specific Moves

The June-quarter earnings season continues to drive sharp moves in individual stocks. Today, companies including TBO Tek, Prestige Estates, Vedanta Power, Vedanta Iron & Steel and others reported their quarterly numbers. While some companies saw buying after strong results, weaker earnings led to selling in others. This has made the market more stock-specific rather than allowing a broad-based rally. 

Key Technical Analysis

Sensex Technical Outlook

The Sensex is holding near the 77,650-77,700 zone after Wednesday’s strong rise, showing signs of consolidation. Immediate support is placed around 77,300-77,400, while resistance is seen near 78,000. The index remains above key support levels, so the short-term setup is still positive. A sustained move above 78,000 could bring fresh buying, while a break below 77,300 may lead to some profit booking.

Nifty 50 Technical Outlook

The Nifty 50 is trading around 24,265 and is consolidating after closing above 24,250 in the previous session. Immediate support is placed around 24,145-24,200, while resistance is seen near 24,350-24,400. The technical structure remains positive as long as the index holds above 24,100. A breakout above 24,400 could strengthen the uptrend, while a move below 24,100 would increase selling pressure.

Bank Nifty Technical Outlook

Bank Nifty is trading under pressure despite the stability in the broader market. The index is holding near the 56,750 area, with support around 56,700-56,800 and resistance near 57,300. The banking index needs to reclaim the 57,300 zone to regain stronger momentum. A break below 56,700 could increase weakness, while sustained buying in HDFC Bank and other large private banks may help the index recover.

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