04 June,2026 05:23 PM IST | Mumbai | mid-day online correspondent
Midcaps and smallcaps outperform in cautious trading session. Representational Pic
Indian equity markets closed largely unchanged on Thursday as investors adopted a cautious approach ahead of the Reserve Bank of India's Monetary Policy Committee (MPC) announcement scheduled for Friday, reported IANS.
While benchmark indices managed to end in positive territory, gains remained limited as traders refrained from taking aggressive positions before the central bank's policy decision, which is expected to provide fresh direction to the markets.
The NSE Nifty 50 ended the session with a modest gain of 10.95 points, or 0.05 per cent, closing at 23,416.55. The BSE Sensex also posted a marginal increase of 13.84 points, or 0.02 per cent, to settle at 74,360.01.
The narrow movement reflected a range-bound trading session, with investors largely choosing to wait for clarity on interest rates and liquidity conditions before making major investment decisions, reported the news agency.
Market sentiment remained subdued throughout the session as participants focused on the outcome of the RBI's MPC meeting.
The policy announcement is expected to offer important signals on the future interest rate trajectory and the central bank's outlook on liquidity management. These factors are likely to influence market direction in the near term, as per the news agency.
As a result, trading activity remained measured, with investors avoiding large bets ahead of the key event.
According to market analysts, the 23,500 mark on the Nifty remains a crucial level for determining the short-term trend.
A sustained move above this zone could improve market sentiment and open the door for further gains towards 23,600 and subsequently 23,800, where significant resistance is visible.
On the downside, immediate support is seen in the 23,300-23,350 range. A stronger demand zone exists between 23,150 and 23,200, an area that has consistently attracted buying interest in recent trading sessions.
Despite the positive close, weakness in a few heavyweight stocks limited the market's upside.
Among the major drags on the Nifty were Infosys, Bajaj Finserv and Hindalco Industries, which came under selling pressure during the session.
Sectoral performance was mixed, with the Nifty IT, Nifty Metal and Nifty Chemical indices emerging as key underperformers. Weakness in export-oriented technology stocks and commodity-linked sectors contributed to the subdued market mood.
In contrast to the benchmark indices, broader markets displayed stronger momentum.
The Nifty MidCap index advanced 0.46 per cent, while the Nifty SmallCap index gained 0.49 per cent, indicating continued investor interest in the broader market segment.
Consumer-focused sectors also witnessed healthy buying activity. The Nifty Consumer Durables and Nifty Media indices emerged as the top-performing sectoral indices during the day.
With benchmark indices hovering near key technical levels, investors are now looking to the RBI's policy decision for fresh cues.
The central bank's stance on rates, inflation and liquidity will be closely monitored by market participants, as it could determine whether markets break out of their current range-bound pattern or continue to consolidate in the coming sessions
(With IANS Inputs)
