Summary
Another day, another fizzled rally — Sensex opens 260 points higher but ends flat as banks, realty and financials pull indices off highs.
IT stocks lead early gains with HCLTech surging 2.6% at open. BHEL returns to profit with a blockbuster Q1, shares hit record high.
Eternal (Zomato) crashes 3% to anchor Nifty losers. Brent crude eases to $84.63 as US drops Hormuz toll plan.
The Sensex ended flat at 77,186.87 (+1.44 points), and the Nifty50 slipped 5.75 points or 0.02% to close at 24,072.75. The indices pared sharp opening gains as realty, bank, and financial services shares weighed in the second half.
• Nifty MidCap 100 down 0.29%
• Nifty SmallCap 100 down 0.41%
Impact On The Stock Market
Indian markets opened sharply higher on Thursday, tracking strong Wall Street cues and expectations of robust Q1 earnings. The Sensex surged 260 points and the Nifty crossed 24,160 at open, with IT stocks leading the charge as HCLTech jumped 2.65% in early trade. However, gains evaporated by close as selling in banks, realty and financial services stocks pulled benchmarks back to flat.
Sectorally, Nifty IT and Consumer Durables outperformed, while Nifty Realty, Nifty Bank and Nifty Financial Services were the biggest drags. Broader markets underperformed the benchmarks, with MidCap 100 falling 0.29% and SmallCap 100 declining 0.41%.
Relative outperformers: IT, Consumer Durables, Media, Auto
Lagging sectors: Realty, Banks, Financial Services, Metals
| Sector/Index | Performance |
| IT & BPM sector | 0.67% |
| Healthcare sector | -0.09% |
| Oil & Gas sector | 0.08% |
| Real estate sector | -0.98% |
| PSU Bank in India | -0.46% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Interglobe Aviation | 5,265.50 | 1.83 |
| Wipro | 177.74 | 1.77 |
| HCL Tech | 1,187.40 | 1.66 |
| Bajaj Finance | 1,037.60 | 1.06 |
| Maruti Suzuki | 13,783.00 | 1.47 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Eternal | 286.45 | -2.83 |
| SBI Life Insurance | 1,822.10 | -2.37 |
| Bharat Electronics | 407.10 | -0.94 |
| Shriram Finance | 1,024.40 | -0.91 |
| HDFC Bank | 808.30 | -0.88 |
Market aftermath: Impact on stocks
BHEL returns to profit with blockbuster Q1 — revenue surges 40%, shares hit record high
Bharat Heavy Electricals Limited (BHEL) was the standout earnings story of the day, swinging to a profit after a year-ago loss and posting its strongest quarter in recent years.
• The Q1 beat: BHEL reported consolidated net profit of ₹376.71 crore in Q1 FY27, compared with a net loss of ₹455.50 crore in the year-ago period — a dramatic turnaround. Revenue surged 40% YoY to ₹7,698 crore, powered by a 52% rise in the power segment.
• EBITDA turnaround: EBITDA stood at ₹504 crore vs a loss of ₹537 crore a year ago. EBITDA margin improved to 6.55% from a negative margin in Q1 FY26. Profit before tax came at ₹512.90 crore vs a loss of ₹607.43 crore YoY.
• Stock reaction: BHEL shares surged 5.5% to hit a record high of ₹441, reflecting strong investor confidence in the power capex cycle. The stock has rallied over 25% in the last three months on the thermal power capacity expansion theme.
• Outlook: The results reinforce the structural uptrend in India’s power sector capex, benefiting capital goods companies. Analysts expect BHEL’s order book momentum to sustain as the government pushes for 100 GW of new thermal and nuclear capacity by 2030.
IT stocks lead opening rally but markets give back all gains — HCLTech +2.65% at open, Nifty ends flat
IT stocks were the clear leaders at Thursday’s open, with HCLTech surging 2.65% and dragging the entire sector higher. However, the broader market failed to hold gains as selling in financials and realty dragged benchmarks flat by close.
• IT morning surge: HCLTech led the Sensex at open, jumping 2.65% to ₹1,199. Infosys rose 1.9%, Tech Mahindra gained 1.51%, Wipro added 1.44%, and TCS climbed 1.29%. The Nifty IT index surged nearly 2% in morning trade, making it the top-performing sector at midday.
• Earnings anticipation: The IT rally was driven by expectations ahead of HCLTech’s Q1 FY27 results (expected after market hours). TCS’s strong Q1 beat and raised guidance had already set a positive tone for the sector. Investors positioned for potential upside surprises.
• Second-half reversal: Despite the IT-led strength, the broader market faded as Nifty Realty, Nifty Bank, and Nifty Financial Services turned negative. The Sensex surrendered its entire 260-point opening gain, ending flat at 77,186.87.
• Pattern forming: This marks the third consecutive session where markets opened strong but gave back gains by close — reflecting persistent uncertainty around the US-Iran conflict and crude oil trajectory. Traders are increasingly cautious at higher levels.
Eternal (Zomato) crashes 3.05% to anchor Nifty losers — profit booking hits quick commerce stocks
Eternal (formerly Zomato) was the biggest loser on the Nifty50, falling 3.05% as profit booking hit the stock after its sharp rally in recent sessions.
• The selloff: Eternal dropped 3.05% on heavy volume, making it the worst performer among Nifty50 constituents. The stock had rallied over 12% in the preceding two weeks on strong quick commerce momentum and food delivery growth expectations.
• Valuation concerns: At current levels, Eternal trades at elevated multiples compared to global peers. Analysts flagged that while the Blinkit quick commerce business is scaling rapidly, profitability visibility remains limited, keeping the risk-reward balanced.
• Insurance stocks also weak: SBI Life Insurance fell 1.50% and Bajaj Finserv dropped 1.40%, giving back some of the gains from the previous session’s insurance rally. The financial services sector as a whole underperformed, dragging benchmarks lower.
Crude oil and commodity trends
Crude oil prices eased marginally on Thursday after three consecutive days of gains, though geopolitical tensions kept a floor under prices:
• Brent crude: ~$84.63 per barrel (-0.37% on the day)
• US WTI crude: ~$79.10 per barrel (-0.30%)
Key developments on Thursday:
• Trump dropped the 20% Hormuz toll: The US abandoned plans to impose a 20% fee on cargo transiting the Strait of Hormuz, saying Gulf nations would instead make investment deals in the US. The International Maritime Organisation had earlier rejected the toll as having no legal basis.
• US strikes continue: US Central Command carried out another 7-hour wave of strikes targeting dozens of Iranian military assets along the coastline, aiming to degrade Tehran’s anti-ship missile capabilities near the Strait of Hormuz.
• Hormuz traffic at trickle: Just 6 vessels transited the strait in a 12-hour window between Thursday 6pm and Friday 6am GMT, far below pre-war levels of ~130 daily crossings. Trump threatened to target Iranian power plants and bridges next week.
• US inventories decline: EIA data showed US crude inventories fell by 1.7 million barrels last week, providing fundamental support despite the geopolitical premium easing slightly.
For India, Brent easing from $87 towards $84–85 is a marginal relief, but prices remain elevated enough to pressure the trade deficit and complicate the RBI’s monetary policy outlook. Any further escalation in Hormuz could push prices back above $87 quickly.
Conclusion
Thursday’s session saw yet another strong opening that fizzled into a flat close, as sector rotation and geopolitical caution limited upside:
• Benchmarks: Sensex flat at 77,187 (+1.44 pts), Nifty -0.02% at 24,073 — third consecutive session of pared rallies
• Sectoral performance: IT (+1.20%), Healthcare (+0.25%); Real estate (-0.80%), PSU Banks (-0.50%), Oil & Gas (-0.40%)
• Top movers: IndiGo (+1.84%), Bajaj Finance (+1.35%), HCLTech (+1.04%); Eternal (-3.05%), SBI Life (-1.50%), Bajaj Finserv (-1.40%)
• Earnings highlight: BHEL returns to profit (₹377 Cr vs ₹456 Cr loss YoY), revenue +40%, shares hit record high at ₹441
• Crude oil: Brent eases to ~$84.63 (-0.37%); Trump drops Hormuz toll but US strikes continue; just 6 vessels in 12 hours
• Broader market: MidCap -0.29%, SmallCap -0.41% — breadth narrowing; 3rd straight session of opening gains erased
