Ending a two-session losing streak, the Indian equity market closed higher despite choppy trade on Thursday as investors rolled over the position on the monthly expiry day. The firm cues from global peers after a U.S. court struck down President Donald Trump’s reciprocal tax policy boosted market sentiments.

The BSE Sensex closed 320.70 points, or 0.39%, higher at 81,633, and the NSE Nifty50 rose 81.15 points, or 0.33%, to settle at 24,834. Outperforming the benchmark indices, the broader markets rose up to 0.6%. The Nifty Midcap100 and Nifty Smallcap100 indices added 0.55% and 0.59%, respectively.

"Global sentiment improved after a U.S. court struck down Trump’s reciprocal tax policy. However, the domestic market remained mostly rangebound during the day due to rising oil prices and higher U.S. 10-year bond yields. Some recovery was seen toward the end of the session, driven by F&O expiry led covering,” said Vinod Nair, Head of Research, Geojit Investments Limited.

On the sectoral front, metal and realty indices emerged as top gainers, rising more than 1% each, followed by IT, pharma, bank, IT and energy. On the other hand, FMCG and PSU banks were among the top laggards.

“Export-focused sectors like IT and pharma performed well, supported by hopes of easing trade tensions. Lack of positive domestic triggers and a drop in industrial output to an eight-month low could lead to short-term market consolidation,” he added.

On the BSE Sensex pack, 24 out of 30 stocks closed in the green zone, led by IndusInd Bank, Sun Pharma, Adani Ports, Eternal (Zomato), and Tata Steel rising up to 2.4%. On the other hand, Bajaj Twins - Bajaj Finance and Bajaj Finserv, ITC, Asian Paints, NTPC and TCS were among losers, ending marginally lower.

Meanwhile, the fear index, India VIX, which gauges the volatility in the markets, declined by 8.87% to 16.42 points.

Technically, the Nifty witnessed a volatile session on the day of monthly expiry. The momentum continues to remain weak, with the Relative Strength Index (RSI) still pointing downward, said Rupak De, Senior Technical Analyst at LKP Securities. “The next crucial support is at 24,670. If the index falls below this level, a sharp correction may occur, potentially dragging the index down to 24,400/ 24,300.  On the other hand, if the Nifty holds above 24,670, it could witness a smart recovery towards 25,000 or 25,150 in the short term,” he added.

Ajit Mishra, SVP, Research, Religare Broking, said the rebound in the Nifty reinforces the ongoing consolidation view, with immediate support now placed at the 24,600-level.” In the absence of any major domestic triggers, participants should continue to closely monitor global markets and the performance of banking and financial majors for cues on the next directional move. Meanwhile, with ample short-term trading opportunities available across sectors, the focus should remain on stock selection and gradually accumulating fundamentally strong counters during this phase.”

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