Indian equities ended on a mixed note Thursday, with benchmark Sensex and Nifty logging modest losses even as midcap shares delivered a strong performance. The 30-share Sensex closed at 82,118, down 127 points, while Nifty settled 58 points lower at 25,124. The divergence highlighted growing investor preference for undervalued mid-sized companies over pricey largecaps.
Financial heavyweights bore the brunt of selling pressure. HDFC Bank dropped 1.2% and Kotak Mahindra Bank fell 1.1%, pulling the banking sector down 0.9%. Auto stocks also weakened with Maruti Suzuki and Tata Motors declining over 1% each amid softening demand signals.
In contrast, the midcap space buzzed with activity. Trent jumped 3.2% on robust retail sales data, while IREDA rallied 4% riding green energy tailwinds. The BSE Midcap index rose 0.8%, significantly outpacing the Sensex. Smallcap bulls charged ahead too, pushing their index up 1%.
‘This rotation into midcaps reflects value hunting after recent corrections, but sustainability depends on earnings delivery,’ noted Deepak Shenoy, Founder of Capital Mind. Trading volumes stayed moderate at ₹12 lakh crore, with FIIs net sellers to the tune of ₹1,200 crore while DIIs absorbed the supply.
Global markets offered little direction with US futures flat ahead of Fed meet. Domestically, eyes are on upcoming RBI commentary and inflation data. The market’s resilience amid geopolitical noise underscores underlying domestic strength, though experts caution against overexposure to high-beta midcaps.