Banking, Realty and Metal Stocks Support Market as Investors Assess Fed Outlook and Falling Crude Prices
Indian benchmark indices traded with modest gains on Thursday, recovering from early losses as buying in banking, financial, realty and metal stocks helped offset weakness in the information technology sector. Investors remained cautious after the US Federal Reserve signaled a hawkish stance on future interest rates, while lower crude oil prices provided some support to market sentiment.
At around 10:00 AM, the BSE Sensex was trading higher by 116 points at 77,272, while the NSE Nifty50 gained nearly 44 points to trade above the crucial 24,100 mark. The recovery highlights the resilience of domestic equities despite mixed global cues and sector-specific pressure.
IT Stocks Under Pressure After Fed Signals Potential Rate Hikes
The technology sector emerged as the biggest drag on the market, with major IT companies witnessing selling pressure. Infosys, HCL Technologies and Tata Consultancy Services were among the top losers on the Nifty50 index.
Investor sentiment towards technology stocks weakened after the US Federal Reserve maintained interest rates but indicated the possibility of future tightening. Higher interest rates in developed markets typically affect technology companies due to valuation concerns and slower global technology spending.
The Nifty IT Index declined more than 1 percent, making it the weakest-performing sector during the trading session.
Broader Markets Continue to Show Strength
Despite the weakness in large-cap technology stocks, broader market indices remained firm. The Nifty MidCap index traded marginally higher, while the Nifty SmallCap index outperformed with gains of more than 0.5 percent.
The continued participation of mid-cap and small-cap stocks suggests that domestic investors remain optimistic about earnings growth opportunities beyond the benchmark indices. Strong retail participation and sector-specific opportunities have helped maintain momentum in the broader market segment.
PSU Banks, Metals and Consumer Stocks Lead Gains
Sector-wise, PSU banking stocks, metal companies and consumer durable manufacturers led the gains. Banking shares benefited from expectations of steady credit growth and improving asset quality, while metal stocks tracked positive demand expectations.
Real estate counters also witnessed buying interest as investors continued to bet on strong housing demand and infrastructure-led growth. Financial services stocks contributed significantly to the benchmark indices' positive performance.
Crude Oil Extends Decline After US-Iran Agreement
Global commodity markets remained in focus after reports of an interim agreement between the United States and Iran. The development is expected to facilitate the reopening of the Strait of Hormuz and ease sanctions on Iranian oil exports.
Brent crude futures slipped below $79 per barrel, extending losses from previous sessions. Lower oil prices are generally viewed positively for India as the country is a major importer of crude oil. Softer energy prices can help ease inflationary pressures and improve the country's trade balance.
Gold and silver prices also witnessed selling pressure as investors reassessed global economic and geopolitical developments.
Corporate Developments Keep Investors Engaged
Among corporate newsmakers, Man Industries and its Saudi Arabia-based subsidiary announced fresh orders worth approximately ₹1,000 crore. The order win reinforces the company's strong position in the pipeline manufacturing segment and could provide revenue visibility in the coming quarters.
Meanwhile, healthcare major HCG remained in focus after regulatory action against its Bangalore Institute of Oncology. The facility has been restricted from undertaking new clinical trials and bioavailability studies for a period of 24 months following an order from the Central Drugs Standard Control Organization (CDSCO).
IPO Market Remains Active
The primary market continued to attract investor attention with two SME public issues opening for subscription. Riyaasat Lifestyle and Avience Biomedicals launched their IPOs, collectively seeking to raise over ₹60 crore through fresh equity issuance.
Additionally, Leapfrog Engineering, Liotech Industries, Diksha Polymers and Clay Craft entered the second day of their subscription period, reflecting sustained activity in the SME fundraising space.
Market Outlook
Market participants are expected to closely monitor global interest rate expectations, commodity price movements and institutional fund flows throughout the day. While weakness in the IT sector remains a concern, strength in banking, financial and broader market segments is helping maintain a positive undertone.
For the Nifty, the immediate resistance zone is seen around 24,150–24,200, while support remains near the 24,000 level. A decisive move above resistance could trigger fresh buying interest and support further upside in the benchmark indices.
Smart Investment Take
The Indian market continues to display resilience amid mixed global signals. Falling crude oil prices, strong domestic participation and sectoral rotation into banks and metals are helping sustain positive momentum. However, investors should remain selective and watch global central bank commentary closely, as interest rate expectations continue to influence market direction.