Stock Market Ends Flat as F&O Expiry Keeps Investors Cautious; Sensex Slips Below 76,800

Indian benchmark equity indices ended Thursday's trading session on a subdued note as volatility during the monthly Futures & Options (F&O) expiry and weak global cues kept investors on the sidelines. The Nifty 50 closed at 23,987.60, down 8.35 points (0.03%), while the BSE Sensex settled at 76,765.92, declining 69.86 points (0.09%).

Throughout the session, both indices swung between gains and losses before finishing nearly unchanged, reflecting cautious investor sentiment ahead of several major global events.

Global markets are preparing for an important week that includes monetary policy decisions from the U.S. Federal Reserve, the Bank of Japan, and the Bank of England. Investors are also closely monitoring quarterly earnings from leading technology companies to assess whether heavy investments in artificial intelligence are translating into stronger financial performance.

Geopolitical developments also remained in focus. U.S. President Donald Trump stated that Washington and Tehran are engaged in negotiations aimed at easing tensions, while cautioning that hostilities could resume if talks fail. Meanwhile, reports indicated that Iran and Oman are exploring ways to restore normal shipping through the Strait of Hormuz, a development that could help stabilize global energy markets.

Overnight, Wall Street delivered mixed performances. The Dow Jones Industrial Average gained more than 260 points, supported by lower crude oil prices, while the S&P 500 ended nearly unchanged. Technology-heavy Nasdaq-100 futures traded lower during Asian hours as investors awaited earnings from major tech firms.

Market participants will continue to monitor central bank policy announcements, corporate earnings, crude oil prices, and geopolitical developments, all of which are expected to influence inflation expectations, interest rate outlooks, and global equity market sentiment in the coming days.

Indian benchmark indices ended Thursday's trading session on a muted note as investors remained cautious during the monthly Futures & Options (F&O) expiry. Despite witnessing intraday volatility, both the Sensex and Nifty closed nearly flat, reflecting a wait-and-watch approach amid global uncertainty and key economic events scheduled over the coming days.

The Nifty 50 settled at 23,987.60, slipping 8.35 points (0.03%), while the BSE Sensex closed at 76,765.92, down 69.86 points (0.09%). Market breadth remained mixed as buying in select sectors was offset by weakness in financials, IT, and metal stocks.

The monthly F&O expiry contributed significantly to market volatility, with traders adjusting positions ahead of contract settlement. Analysts noted that while domestic fundamentals remain supportive, investors preferred to avoid aggressive bets before major global policy announcements.

Global sentiment also remained subdued as investors awaited interest rate decisions from the U.S. Federal Reserve, the Bank of Japan, and the Bank of England. These central bank meetings are expected to provide important guidance on inflation, monetary policy, and the global economic outlook. Any unexpected policy shift could have a direct impact on foreign investment flows into emerging markets, including India.

Attention is also focused on the quarterly earnings season, particularly results from major global technology companies. Investors are closely watching whether continued spending on artificial intelligence and digital infrastructure is translating into improved profitability and revenue growth. Strong earnings could boost global equity markets, while disappointing results may increase volatility.

Geopolitical developments in the Middle East remained another major factor influencing investor sentiment. Market participants continued to monitor diplomatic efforts aimed at reducing regional tensions. Any disruption to energy supply routes, especially around the Strait of Hormuz, could push crude oil prices higher and increase inflationary pressures worldwide.

On Wall Street, trading was mixed overnight. The Dow Jones Industrial Average posted gains, supported by easing crude oil prices, while the S&P 500 ended little changed. Technology-heavy indices traded cautiously as investors positioned themselves ahead of earnings announcements from leading technology companies.

Back home, sector-wise performance remained mixed. Defensive sectors such as FMCG and pharmaceuticals attracted selective buying, while banking, automobile, and information technology stocks traded in a narrow range. Mid-cap and small-cap indices also witnessed limited movement as investors preferred quality large-cap stocks.

Market experts believe the Indian market continues to display resilience despite global uncertainties. Strong domestic economic indicators, healthy corporate earnings expectations, and sustained participation from retail investors continue to support the broader market outlook. However, global interest rate decisions, crude oil prices, foreign institutional investor (FII) flows, and geopolitical developments are expected to determine the market's short-term direction.

Looking ahead, traders will closely monitor upcoming macroeconomic data, corporate earnings, and commentary from global central banks. These factors are likely to shape investor sentiment and influence market trends in the coming sessions. While near-term volatility may persist, analysts remain optimistic about India's long-term growth story, supported by strong economic fundamentals and continued infrastructure investment.