Indian Markets Close Flat Amid Lack of Major Triggers and Year-End Optimism

The Indian stock markets ended flat on Thursday, driven by the absence of significant triggers. The Nifty 50 rose slightly, while BSE Sensex saw a minor decline. Sectoral performance was mixed, with auto gains, while metals, FMCG, and media lagged. Market hopes hinge on year-end consolidation and potential stimulus.

The Indian stock markets experienced a largely uneventful day on Thursday, closing flat in the absence of substantial domestic or global drivers. The Nifty 50 at the National Stock Exchange closed at 23,750.20, marking a modest gain of about 22 points or 0.1 percent, whereas the BSE Sensex dropped slightly by 0.39 points.

Standout performers included Adani Ports, Shriram Finance, M&M, SBI Life Insurance, and Maruti Suzuki. Conversely, Titan, Asian Paints, Tata Consumers, Grasim Industries, and JSW Steel emerged as top losers. Sectoral indices reported mixed results, with auto, energy, pharma, realty, and PSU Bank indices drawing investor interest, while metal, FMCG, and media faced selling pressure. Despite opening positively, Bank Nifty succumbed to strong selling trends, closing just below its opening level at 51,171.

Vinod Nair, Head of Research at Geojit Financial Services, noted the market's stability on the year's final expiry day amidst quiet global peers and the absence of notable triggers. The outlook remains muted because of FII outflows, a declining rupee, and a surging US dollar index, although there's potential optimism for a year-end rally leading into early January, as observed by V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. In technical terms, Hrishikesh Yedve from Asit C. Mehta Investment Intermediates emphasized Nifty's struggle against the 200-Day Simple Moving Average, indicating immediate hurdles and potential ranges moving forward.

(With inputs from agencies.)