Indian equities edge higher on expiry day as Sensex, Nifty post modest gains

Indian equities opened marginally higher on Thursday as markets braced for expiry-day volatility. The Sensex and Nifty posted modest gains of around 10 and 11 points respectively, according to market reports. The India VIX rose 3% to 10.84, signaling increased volatility in the near term. Among individual stocks, Kotak Mahindra Bank led gains during the session. However, HCL Technologies and HDFC Bank declined, reflecting mixed investor sentiment across sectors. The consumer durables sector posted gains, while fast-moving consumer goods stocks slipped amid choppy trading conditions. Market breadth remained mixed, indicating that gains were not broad-based across the index.

Expiry days in equity derivatives markets typically see elevated volatility as traders unwind positions and adjust hedges ahead of contract settlements. The marginal moves in headline indices combined with the rising VIX suggest that while overall sentiment remained cautious, investors were preparing for potential sharper price movements. The divergence between sectors—with durables outperforming FMCG—indicates selective buying in specific areas rather than broad-based bullish conviction. This cautious stance ahead of expiry underscores the uncertainty in market participants' outlook, with traders likely waiting for clearer directional signals post-expiry before making substantial fresh commitments. The performance of the session will likely set the tone for subsequent trading days as the market digests any positioning shifts that occur during expiry.

Source: Markets-Economic Times