India’s equity benchmarks ended little changed on Thursday, as investors took profits after the indexes scaled record highs amid a favourable macroeconomic backdrop and boosted by hopes of a local rate cut next week.
The Nifty 50 rose 0.04% to 26,215.55 and the BSE Sensex settled 0.13% higher at 85,720.38, both closing just shy of record closing high levels hit on September 2024. Meanwhile, the broader small-caps fell 0.5%, while mid-caps closed flat.
The Nifty and the Sensex rose as much as 0.4% and 0.5%, respectively, earlier in the session to all-time highs of 26,310.45 and 86,055.86, driven by rate-sensitive financials amid growing conviction of policy easing by the Reserve Bank of India next week.
“The market setup, at least for the large-cap benchmarks, remains very favourable for a continued rally,” said Sunny Agrawal, head of fundamental research at SBICAPS Securities.
“This is supported by imminent rate-cut hopes from both the Federal Reserve and the RBI, improving domestic earnings, tax cuts, eased valuations, stable domestic flows, benign inflation and robust economic growth prospects,” Agrawal said.
The benchmarks, however, ended flat as broad-based profit booking at record highs offset the strength in financials.
“Bouts of profit-taking are inevitable at all-time highs and will continue until the December earnings season meets expectations and justifies valuations in the broader small-cap and mid-cap segments.”
Ten of the 16 major sectors declined.
Bucking the trend, heavyweight financials rose 0.5%, while banks and private banks gained about 0.3% each.
Among individual stocks, Ashok Leyland jumped 7.3% to a record high after the truck manufacturer’s unit approved its merger with real estate firm NDL Ventures.
Whirlpool of India fell 11.4% after multiple block deals were executed at a discount to its previous close. Media reports said promoter entity Whirlpool Mauritius planned to offload up to 9.5 million shares through the deals.
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