Indian Markets Remain Flat Amid Global Tensions and Commodity Volatility

Indian Stock Market Ends Flat After Volatile Session

The Indian stock market experienced a volatile session on Thursday, with the Nifty 50 index closing at 24,196, a 34-point decline from the previous day. The BSE Sensex also took a hit, falling 122 points to finish at 77,988. The Bank Nifty index, however, was the biggest loser, closing 215 points lower at 56,086.

Despite the decline, sectoral trends remained mixed, with metals, IT, and energy stocks supporting the index. However, banking and auto stocks witnessed some pressure. The broader markets continued to outperform, with midcap and smallcap indices gaining around 0.6-1%, reflecting sustained positive market breadth.

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The Gift Nifty live chart is trading flat and signaling a muted opening for the Indian stock market. Market experts expect a flat opening on Dalal Street, with the Gift Nifty indicating a subdued start despite strong cues from the US. The divergence in global markets is becoming more pronounced, with US indices scaling record highs while Asian markets have opened lower.

Global Markets

Wall Street extended its rally, with the S&P 500 and Nasdaq closing at fresh highs on improving sentiment over a potential resolution in the Middle East. Reports of a temporary ceasefire between Israel and Lebanon have added to optimism, with expectations that this could pave the way for renewed US-Iran negotiations. However, Asian markets appear less convinced, trading lower as investors remain wary of how durable these developments are.

Commodities

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The WTI crude oil price remains around $93.50/bbl, enabling bullion to attract buyers during the early morning session in the international market. The COMEX gold rate today is around $4,800/oz, while the COMEX silver rate today is around $78.50/oz. On Thursday, the MCX gold futures contract for the June 2026 expiry finished at ₹1,53,239 per 10 gm, while the MCX silver rate ended at ₹2,48,298 per kg.

Market experts expect gold and silver prices to attract buyers amid cooling crude oil prices. The COMEX gold rate today is in the $4,750 to $4,850 per ounce range, while the COMEX silver rate today is in the $75 to $88 per ounce range. Breaking above these levels could lead to further gains in the precious metals.

RBI Move

The Reserve Bank of India's announcement of a ₹2 lakh crore seven-day variable rate reverse repo auction indicates an intent to absorb excess liquidity from the system. This move is expected to tighten financial conditions at the margin, influencing short-term interest rates and borrowing costs.

Crude Oil Price

Brent crude remains highly sensitive to further escalation, with prices trading in the $94 to $100 per barrel range. Any disruption to supply could quickly push prices higher, posing a key risk for India as a major oil importer.

India VIX

Volatility remains an important factor, with India VIX cooling from recent highs but remaining above 18. This reflects an underlying layer of uncertainty, particularly from global developments.

FII-DII Data

Foreign Institutional Investors (FIIs) ended up as net buyers on Wednesday, buying Indian shares worth ₹382.36 crore in the cash segment. However, Domestic Institutional Investors (DIIs) remained net sellers, selling shares worth ₹3,427.75 crore in cash.

Market Outlook

Market experts expect a positive stance on the Nifty and recommend a 'buy on dips' approach, focusing on stock selection based on rotational sectoral trends. Participants should closely monitor earnings developments and geopolitical cues for further directional clarity.

Stock Recommendations

Market experts recommend the following stocks for intraday trading: