In today’s trading landscape, the Indian stock market displayed a range-bound performance, with both the Nifty 50 and Sensex closing nearly flat. On April 29, the Nifty 50 settled at 24,355, marking a slight increase of 0.03% from the previous session. Meanwhile, the Sensex gained 0.09%, concluding at 80,288 points. Interestingly, the broader market indices, such as the Nifty Midcap 100 and Nifty Smallcap 100, outshone the benchmarks, recording gains of 0.31% and 0.37%, respectively.
Surge in Defence Stocks
A notable highlight of the day was the impressive performance of defence stocks. Companies like Hindustan Aeronautics Limited (HAL), Mazagon Dock, and Garden Reach Shipbuilders (GRSE) experienced remarkable gains, with increases reaching up to 15%. This surge can be attributed to growing expectations for increased military equipment demand and potential rises in defence budgets both regionally and globally.
Sector Performance Overview
When examining sector performance, the Nifty IT index emerged as the standout performer of the day, climbing 1.23% to finish at 35,920 points. Other sectors, including Nifty Consumer Durables and Nifty Oil & Gas, also saw gains of up to 0.45%. Conversely, the Nifty Pharma sector faced challenges, dropping by 1%, while sectors such as Nifty Metal, Nifty Media, Nifty Realty, Nifty Auto, and Nifty FMCG all reported declines of up to 0.90%.
Market Insights and Expert Commentary
Vinod Nair, the Head of Research at Geojit Investments, remarked on the market’s cautious nature amid geopolitical tensions. He noted that the national market exhibited a tendency for range-bound oscillation, with Foreign Institutional Investors (FIIs) providing essential support to maintain market sentiment. Despite the mix of Q4 results raising concerns about potential downward revisions for FY26 projections, the inflow of capital has restricted further pessimism.
FPI Investments and Market Outlook
In the past nine sessions, FPIs have infused approximately ₹35,000 crore into Indian equities, propelling the Nifty 50 index upward by 6.6% during this timeframe. Despite global economic slowdown concerns, analysts from major brokerage firms are optimistic about India’s fundamentals. UBS recently forecasted an 8% upside for the Nifty 50, anticipating it could reach 26,000 within the next year. The firm remains bullish on sectors such as retail, staples, two-wheelers, and travel, while also expressing a positive outlook on financials, real estate, cement, and healthcare.
Trade Developments
On the trade front, easing tariff tensions seem to be on the horizon. Reports indicate that the U.S. administration, under President Donald Trump, is contemplating the reduction of duties on foreign vehicle parts, which could further impact market dynamics.
In summary, while the Indian stock market faced a day of modest gains, certain sectors like IT and defence stocks showed considerable strength. As we move forward, the ongoing foreign investment influx and potential easing of trade tensions may shape the market’s trajectory in the coming days.
