Indian benchmark indices ended largely flat on Thursday, 7 May, after trading in a narrow range throughout the session, even as broader markets outperformed and auto stocks witnessed strong buying interest. The BSE Sensex declined 114 points, or 0.15%, to settle at 77,844.52, while the Nifty50 slipped just 4.30 points, or 0.02%, to close at 24,326.65.

Key Drags on Frontline Indices

Among the top laggards on the Nifty50 were Hindustan Unilever, Tata Consultancy Services (TCS), and Titan Company, which collectively weighed on the benchmark. On the sectoral front, the Nifty Consumer Durables, Nifty IT, and Nifty FMCG indices underperformed during the session, reflecting continued pressure on defensives and technology plays.

Broader Markets Outperform

Despite the muted performance in headline indices, mid- and small-cap stocks bucked the trend. The Nifty MidCap index advanced 1.20%, while the Nifty SmallCap index gained 0.97%, signalling that risk appetite remained intact below the surface. The Nifty Auto index emerged as the top sectoral gainer of the session, reflecting sustained consumer demand optimism in the segment.

Technical Outlook and Key Levels to Watch

Analysts noted that the 24,400–24,500 zone continues to act as an immediate resistance band for the Nifty. According to market experts, a sustained breakout above this range could revive upward momentum toward the 24,600+ levels. On the downside, the 24,100–24,000 zone is seen as a critical support area. "On the downside, the 24,100–24,000 zone remains a key support area, which is expected to provide stability in case of renewed selling pressure," an analyst stated.

Global Cues: Crude Slumps, Rupee Strengthens

Global crude oil prices witnessed a sharp decline, providing some relief to the domestic macroeconomic outlook. Brent crude futures dropped 2.74% to $98.50 per barrel after reports suggested that the US and Iran had reportedly reached an agreement aimed at ending the blockade and paving the way for the gradual reopening of the Strait of Hormuz. Meanwhile, the Indian rupee traded stronger at 94.24 against the dollar, gaining around 15 paise, as improving sentiment around the ongoing US–Iran talks supported risk appetite.

Near-Term Market Outlook

Analysts cautioned that markets will remain highly sensitive to headline risk in the near term. "In the near term, markets will remain highly sensitive to headline risk with volatility contingent on developments out of the Gulf, most critically Iran's response to the US peace proposal and the potential reopening of the Strait of Hormuz," an analyst stated. A definitive resolution on the Hormuz situation could significantly ease energy cost pressures for India, which imports a substantial share of its crude requirements from the Gulf region. Investors will closely track further diplomatic developments and any follow-through in crude prices in the sessions ahead.