Indian equity markets exhibited minimal movement during Thursday's trading session, concluding with marginal changes as investors adopted a cautious stance ahead of significant economic data releases. The benchmark Nifty 50 index registered a slight gain of 0.06%, closing at 25,496.55 points. Conversely, the Sensex experienced a minor decline of 0.03%, settling at 82,248.61. The subdued performance reflected a market in consolidation, with participants hesitant to take substantial new positions.
Sectoral Performance and Key Drags
The session was characterized by a clear divergence in sectoral fortunes. HDFC Bank emerged as a primary drag on the major indices, its losses effectively neutralizing positive momentum elsewhere. This weakness offset robust performances from public sector banks and pharmaceutical stocks. The Nifty PSU Bank index advanced by 1%, while the pharma sector climbed 1.1%, indicating a rotational shift into sectors displaying relative strength. Notably, State Bank of India shares added 0.8% following a reaffirmed "outperform" rating from brokerage CLSA, which highlighted the bank's solid liquidity metrics and profit trajectory.
Technology Sector Under Pressure
A significant area of concern for market participants remains the information technology sector. The Nifty IT index has witnessed a steep decline of nearly 20% throughout February 2026. Analysts attribute this sustained sell-off to persistent investor anxiety regarding the long-term impact of artificial intelligence on traditional IT service business models, particularly concerning future earnings potential and profit margins. Despite more attractive valuations emerging from the correction, sentiment remains guarded, with expectations for continued caution in the near term.
In individual stock action, Sanofi India saw its share price drop approximately 3.5% after reporting quarterly and full-year profits that fell short of market expectations for the period ending December 2025. The company concurrently declared an annual dividend of 123 rupees per share.
Market Breadth and Sentiment
Broader market participation showed a mixed picture. While mid-cap stocks managed to eke out gains, small-cap equities struggled to find footing, suggesting that risk appetite is not uniformly distributed across market capitalizations. Overall, 14 out of the 16 major sectoral indices closed in positive territory. Market analysts described the day's action as indicative of a consolidation phase, driven by a combination of profit-booking and anticipation of upcoming macroeconomic catalysts.
Focus on Upcoming GDP Data
The primary focus for traders and economists is firmly set on Friday's data release from the Ministry of Statistics and Programme Implementation. The agency is scheduled to publish the Gross Domestic Product (GDP) growth figures for the October-December 2025 quarter (Q3 FY26). Crucially, this release will introduce a revised GDP series with an updated base year of 2022-23, replacing the older 2011-12 base.
This methodological overhaul is expected to incorporate more comprehensive data from the Goods and Services Tax (GST) network and utilize a wider array of economic surveys. The revision aims to provide a more accurate and contemporary reflection of the Indian economy's structure and growth. The release will also include the second advance estimates for the full fiscal year 2025-26.
Potential Market Implications
The impending data carries substantial potential to influence market direction. Analysts warn that any significant surprise in the GDP growth number, or unexpected nuances arising from the base-year change, could swiftly alter expectations surrounding monetary policy and interest rates. Given the current fragile sentiment, particularly in heavyweight sectors like IT, a negative surprise could trigger fresh selling pressure and further weigh on the benchmark indices.
Post-market indicators suggested a tentative outlook for the next session. Gift Nifty futures, an offshore contract often viewed as a barometer for early sentiment, traded 0.51% lower late Thursday after the domestic cash market close.
Looking beyond Friday, trading activity is expected to be truncated next week with Indian financial markets closed on Monday, March 3, in observance of the Holi festival. This calendar effect may contribute to heightened volatility and lower liquidity in the sessions surrounding the holiday.
