Indian equity benchmarks closed flat on Thursday, with optimism over easing US-India trade tensions offset by selling in IT stocks.
The BSE Sensex and NSE Nifty 50 moved cautiously through the session. Gains in banking and energy counters balanced declines in the technology sector. Reports of renewed dialogue between New Delhi and Washington supported investor sentiment, as both sides discussed ways to reduce the impact of steep US tariffs on Indian goods.
IT majors Infosys, TCS, and Wipro dragged the indices lower. Concerns over global demand and the stronger US dollar weighed on outsourcing revenues. Analysts noted that investors booked profits in technology after recent rallies, even as optimism improved in other sectors.
Banking, auto, and energy stocks cushioned the fall. HDFC Bank, Reliance Industries, and Tata Motors posted modest gains, reflecting confidence in domestic demand. Midcap and smallcap indices also stayed firm on selective buying in broader markets.
The rupee stayed under pressure against the US dollar, though expectations of progress in trade negotiations limited losses.
Experts said the near-term outlook depends on the course of US-India trade talks, foreign institutional flows, and the pace of monsoon rainfall that directly drives rural demand.
Overall, markets showed a balancing act—global optimism kept indices steady, while IT weakness capped the upside.
