The Indian stock market opened on a cautious note on Thursday, following mixed global cues after the United States and China agreed to pause their trade conflict for a year.
The Sensex began the session slightly lower at 84,379.79, down 25 points from the previous close of 84,404.46, while the Nifty opened 14 points lower at 25,863.80.
Despite the subdued start, both indices soon turned positive, supported by buying in automobile and banking heavyweights. Analysts noted that the limited trade truce between Washington and Beijing brought temporary relief but fell short of market expectations for a breakthrough agreement.
“The Trump-Xi summit delivered only a one-year truce in the US-China trade war, not a breakthrough trade deal. To that extent, investors were disappointed, even though the easing of tensions offered some optimism,” analysts observed.
Among Sensex constituents, NTPC, Tata Steel, Kotak Bank, Sun Pharma, and Bharti Airtel traded lower in early hours, while Maruti Suzuki, TCS, BEL, Bajaj Finance, Titan, Tata Motors PV, L&T, and ITC moved higher, helping markets stabilise.
Mid- and Small-Cap Indices Show Strength
Broader indices displayed resilience, with Nifty Midcap 100 and Nifty Smallcap 100 both gaining around 0.4 per cent. The Nifty 100 also traded in the green, indicating selective buying in quality stocks.
However, analysts cautioned that the market rally may be losing steam as it nears the record high of 26,277, set in September 2024. “Renewed selling by FIIs could drag the market in the near term,” they added.
Sectoral indices, including Nifty Auto, Nifty IT, Bank Nifty, and Nifty FMCG, traded up to 0.6 per cent higher amid renewed buying interest. Nifty Financial Services also advanced modestly.
Analysts advised traders to adopt a cautious buy-on-dips approach. They urged them to book partial profits during rallies and apply tight stop losses. Analysts suggested taking fresh long positions only if Nifty sustains above the 26,100 mark, indicating potential bullish continuation.
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