The Indian stock market ended its seven-day winning streak on Thursday, dragged lower by profit-booking and monthly F&O (Futures and Options) expiry-related volatility. The session was largely rangebound, reflecting the cautious mood prevailing across global markets and the weight of an ongoing corporate earnings season.

Sensex and Nifty Decline; Key Psychological Level Breached

The BSE Sensex dropped 315 points, or 0.39%, settling at 79,801, while the NSE Nifty 50 declined 82 points, or 0.34%, to 24,247, breaching the psychologically significant 24,300 level. The slide came after a stellar run of gains in previous sessions and was largely seen as technical profit-taking.

The Nifty Bank index fell by 169 points to 55,201, with ICICI Bank and HDFC Bank among the key drags. These two heavyweights continued to weigh on overall investor sentiment, as banking stocks saw selling pressure across the board.

Hindustan Unilever Tanks After Disappointing Guidance

One of the major underperformers of the session was Hindustan Unilever (HUL), which slumped nearly 4%. The FMCG giant issued a guidance that its operating margins would remain in the 22–23% range, a figure that fell short of market expectations. The lack of positive surprises triggered a sell-off, reflecting concerns over subdued growth in rural demand and input cost pressure.

Nestle India, another consumer staple heavyweight, initially rallied post-earnings but failed to sustain gains, ending off its intraday highs. While the numbers were decent, the market viewed the outlook with caution.

Mixed Performance in Broader Markets

The Nifty Midcap 100 index ended lower by 71 points, closing at 54,970, indicating a neutral undertone in broader markets. The advance-decline ratio remained even at 1:1, signaling the absence of a clear directional trend.

Market participants appeared to tread cautiously, focusing more on stock-specific developments rather than broader sectoral moves.

Top Gainers: Divi’s Labs and Dalmia Bharat

Among the few bright spots, Divi’s Laboratories surged 5% after a positive brokerage upgrade. Analysts cited strong growth visibility and sustainable margins, especially in its core API segment and custom synthesis business.

Dalmia Bharat also jumped 5%, thanks to a robust quarterly earnings report. The cement company reported stable operational metrics and profitability that beat estimates, which cheered investors.

Pharma, Energy and Consumer Durables Stocks Shine

In the pharmaceutical space, Lupin gained 1% after receiving a crucial U.S. FDA approval for a key product. While Laurus Labs reported a strong quarter, its stock closed 1% lower as traders opted to lock in profits after a recent rally.

Adani Energy Solutions rose 3%, fueled by a strong earnings report that highlighted healthy revenue growth and operational excellence. This gain added to the positive momentum in the power and energy space.

Consumer durable major Whirlpool of India emerged as a standout performer, rallying 9% on the back of strong volumes and institutional flows. Market experts attributed the surge to seasonal recovery expectations and growing demand for cooling appliances amid the onset of summer.

Tyre Stocks Continue Rally, Tech Names Under Pressure

Tyre companies such as Apollo Tyres and MRF saw a continuation of buying interest, each gaining around 2%. The rally is supported by expectations of robust domestic demand and easing raw material costs, particularly rubber.

On the flip side, tech stocks remained under pressure. Persistent Systems, despite posting decent intraday gains, ended 5% lower as its management adopted a cautious tone for the upcoming quarters, citing global macroeconomic challenges and slowing client spending.

F&O Expiry Drives Choppy Trading

The day was also marked by monthly derivatives expiry, which typically leads to volatility and rangebound movement. With traders squaring off positions and rolling over to the next series, volumes were higher, but price action remained muted for most of the session.

Market participants believe that the decline was more of a technical pullback than a trend reversal. The sentiment, they said, remains largely positive but tethered by macro data, global cues, and the ongoing Q4 earnings season.

Expert Commentary and Market Outlook

A senior fund manager at a leading domestic mutual fund remarked, “It was an expected pause after a strong run-up. The focus will now shift to stock-specific stories as earnings announcements pick up pace. Consolidation is likely to continue in the short term.”

Analysts expect the markets to remain volatile but healthy, with earnings momentum and institutional flows being key drivers. Factors like the U.S. Federal Reserve’s rate guidance, crude oil trends, and global inflation prints will also influence sentiment.

Final Takeaway

In summary, Indian stock markets cooled off after a sharp rally, as investors opted to book profits on expiry day. The decline was broad-based but not alarming, and the underlying sentiment remains constructive. With the earnings season underway, the spotlight will remain on company-specific triggers, and traders are advised to stay nimble and adopt a bottom-up approach.

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