Sensex, Nifty trim early gains amid cautious optimism; PSBs, metals drag

Nifty Bank was among the worst-performing sectoral indices, quoting 28,058. Meanwhile, the Nifty PSU Bank index was trading at 7,154, down by 0.54 per cent.

Benchmark equity indices saw a moderate surge on Thursday, pulling the brakes on the range-bound movement witnessed so far this week. The optimism was largely driven by renewed optimism following a decline in US private payroll data, which raised expectations of a Fed rate cut and a rebound in foreign capital inflows into emerging markets. Adding to the overall mood were rising prospects around India striking a trade deal with the US ahead of the July 9 tariff deadline. However, the optimism was limited as macro factors restrained bullish sentiment, capping the broader uptrend.

 

At 11:45 AM, the BSE Sensex was trading at 83,639.16, up by 229 points or 0.27 per cent. Whereas, the Nifty50 index was trading just a tad above the psychological 25,500 level, up by a mere 57 points or 0.22%. The upcoming earnings season and prevailing valuation concerns kept the euphoria in check.   CATCH STOCK MARKET LIVE UPDATES TODAY 

 

From the Sensex pack, Mahindra and Mahindra, Asian Paints, Eternal (formerly Zomato), Maruti Suzuki and Infosys were among the top gainers. On the other hand, Tata's retail arm, Trent, Bajaj twins, Kotak Mahindra Bank and Titan were among the top losers. The cautious optimism was also present in the broader market segment. While the Nifty Midcap 100 was trading at 59,762, up by 0.16 per cent, the Nifty SmallCap was quoting 19,022, up by 0.24 per cent.

 

"Some recent data from the US indicate negative news on the jobs front. This can trigger more capital outflows from the US and further weakening of the dollar, which has already depreciated by more than 10% this year. This is good news for EMs like India," said VK Vijayakumar, chief investment strategist at Geojit Investments.

 

"A positive trigger can come from a possible India-US trade deal to be announced in a few days. The US-Vietnam trade deal indicates the eagerness of the US administration to strike as many trade deals as possible since deals with the EU and Japan appear unlikely soon," he added.

 

Sectorally, almost all sectors were trading in green, with the auto index leading gains. Nifty Auto witnessed a sharp surge of 0.84 per cent, led by gains in Bosch, Hero MotoCorp and MRF. However, Nifty PSU Bank was among the worst-performing sectoral index, trading at 7,154, down by 0.54 per cent.

 

In the primary market, Indogulf Cropsciences made a flat listing on the bourses at an issue price of ₹111, despite GMP (grey market premium) signaling a double-digit debut on the D-street.

 

Optimism in Check

 

While the macro factors might signal bullish sentiment, D-street analysts believe that this optimism will largely remain limited as uncertainty is still not out of the picture. Any downside surprises in the upcoming earnings season might dampen the market mood. Until then, markets are likely to trade in a range-bound zone.  

"The challenge is the tepid earnings growth in India and indications of only modest earnings growth in FY26. Given the weak micros and high valuations, the market will face hurdles in its attempt to break out above the upper end of the range," Vijayakumar said.

 

"With the deadline for the tariff pause expiring next week, it will be interesting to see if the current optimism globally holds up. Today is weekly derivatives expiry, so higher than usual volatility may be seen," said Akshay Chinchalkar, head of research at Axis Securities.