Stock market today: Sensex, Nifty end higher, but gains remain capped; here's why

Indian equity benchmarks gave up a significant portion of their intraday gains on Thursday but ended the holiday-truncated week in positive territory, extending the winning run to a second consecutive session.

The 30-share BSE Sensex pack climbed 109.25 points or 0.14 per cent to settle at 77,100.47, while the NSE Nifty50 index gained 34.35 points or 0.14 per cent to close at 24,056. During the day, Sensex touched an intraday high of 77,803.18, and Nifty hit 24,261.60, before surrendering 702.71 points and 205.6 points, respectively, from those levels.

The broader indices, however, ended in the red, with Nifty Midcap100 declining 0.55 per cent and Nifty Smallcap100 slipping 0.47 per cent.

Among the key contributors to the Sensex's rise were Mahindra & Mahindra Ltd (M&M), ICICI Bank Ltd, Maruti Suzuki India Ltd, Interglobe Aviation Ltd (IndiGo's parent), HDFC Bank, State Bank of India (SBI), Reliance Industries Ltd (RIL), Larsen & Toubro Ltd (L&T) and Kotak Mahindra Bank Ltd.

Vinod Nair, Head of Research, Geojit Investments, said, "The market concluded the day almost flat, as early intraday gains were offset by profit booking. While a sharp decline in crude oil prices supported the rupee and provided some cushion, it was insufficient to sustain upward momentum."

He added, "On the sectoral front, auto stocks outperformed, driven by softer metal prices, easing supply chain constraints, and improving retail demand during the month. Overall sentiment remained constructive; the continued FII outflows can limit the upside. In the near term, sentiment may be influenced by a muted Q1 earnings outlook and an uneven monsoon, which should be monitored going forward."

Echoing a similar view, Ankur Punj, MD & Business Head at Equirus Wealth noted that the market ended with tepid gains as investors booked profits in late trades ahead of an extended holiday.

"As domestic benchmarks will be shut on Friday due to Muharram, investors trimmed their equity positions. With the global macroeconomy still clouded by geopolitical tensions and volatile crude prices, selective buying could be the preferred route for investors," he also said.

Nifty outlook

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, "Going ahead, the immediate resistance for Nifty50 is placed in the 24,200-24,250 zone. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,400, followed by 24,600 in the short term. On the downside, the immediate support is placed in the 23,900-23,850 range."