Indian equity markets ended marginally higher on Thursday after recovering from early losses, with the BSE Sensex closing above the 74,300 mark and the NSE Nifty 50 settling above 23,400. Despite weak global cues and persistent geopolitical concerns, buying in select sectors, positive market breadth, and optimism ahead of the RBI policy announcement were the key factors that helped the market stage a late-session recovery. Broader markets outperformed the benchmark indices, with midcap and smallcap stocks witnessing healthy gains.

1. Recovery After Early Selling Pressure

The market opened on a weak note due to concerns surrounding the ongoing US-Iran conflict and rising crude oil prices. However, bargain hunting at lower levels helped benchmark indices recover significantly from their intraday lows. Investors used the correction as an opportunity to accumulate quality stocks, resulting in a positive close despite initial weakness.

2. Positive Breadth in Midcap and Smallcap Stocks

While benchmark indices remained largely range-bound, broader markets displayed resilience. Midcap and smallcap indices gained nearly 1%, indicating continued investor interest in domestic growth-oriented companies. Strong participation from the broader market helped offset weakness in select heavyweight stocks and improved overall market sentiment.

3. Optimism Ahead of RBI Policy Decision

Investors remained focused on the Reserve Bank of India’s upcoming monetary policy announcement. Market participants expect the RBI to maintain policy stability while providing guidance on inflation, liquidity, and economic growth. The expectation of a balanced policy stance supported sentiment and encouraged selective buying across rate-sensitive sectors.

4. Strength in Select Large-Cap Stocks

Heavyweight stocks such as Titan and other consumer-focused companies witnessed buying interest during the session. Their gains helped benchmark indices recover from intraday lows and provided support to the broader market. Investors continued to prefer fundamentally strong businesses amid the prevailing uncertainty.

5. Stability in Domestic Fuel Prices

Although global crude oil prices remain elevated, domestic petrol and diesel prices remained unchanged. This provided some relief regarding inflation concerns and helped prevent a sharper deterioration in market sentiment. Investors are closely monitoring oil prices as any significant increase could impact inflation and corporate earnings going forward.

Key Technical Analysis

Sensex Technical Outlook

The Sensex witnessed a strong intraday recovery after slipping sharply during the opening session. The index managed to reclaim key support levels and closed near the upper end of its trading range, indicating buying interest at lower levels. Immediate resistance is placed near 74,700, while support is seen around 73,800. 

Nifty 50 Technical Outlook

The Nifty 50 remained range-bound but displayed resilience by closing above the 23,400 mark. The index continues to hold above its immediate support zone near 23,250. On the upside, resistance is placed around 23,550–23,650. A decisive breakout above these levels could trigger fresh buying momentum, while a break below support may invite renewed selling pressure.

Bank Nifty Technical Outlook

Bank Nifty traded with a positive bias and showed relative strength compared to the broader market. The index remains above the crucial 53,000 support zone, indicating that bulls are attempting to regain control. Immediate resistance is placed near 54,000, and a sustained move above this level could lead to further upside. On the downside, support remains around 53,200, which is crucial for maintaining positive momentum.

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