The Indian stock markets ended lower on Thursday after a day of cautious trading, as late selling pressure erased earlier gains. Investors remained watchful amid hopes of a possible trade agreement between the US and India.

The Sensex touched an intra-day high of 83,850 in early trade but eventually closed 170.22 points or 0.2 per cent lower at 83,239.7. Similarly, the Nifty also slipped by 48.1 points or 0.19 per cent, settling at 25,405.3 by the end of the session.

Markets traded volatile on the weekly expiry day and ended marginally lower, continuing the ongoing consolidation phase, said Ajit Mishra of Religare Broking Limited.

After an initial uptick, the Nifty oscillated sharply in both directions while remaining within Wednesday’s trading range, ultimately closing at 25,405.30.

India's real GDP growth is projected to grow in a range of 6.4-6.7 per cent in FY26, reinforcing the country’s position as the fastest-growing major economy in the world, the Confederation of Indian Industry (CII) said on Thursday.

CII President Rajiv Memani said that at a time when global economic and political volatility is at its highest in over two decades, India stands out as a bright spot in an increasingly fractured global economy.

Speaking at a CII event in the national capital, Memani said competitiveness is India’s passport to prosperity.

"But it must be earned through reform, through innovation, and through trust. CII remains committed to working alongside the government, industry, and citizens to accelerate India’s rise as a confident, competitive, and globally connected economy," he said, adding that India’s internal momentum is strong enough to withstand external shocks.

India Inc has shown remarkable financial strength over the last five years, with corporate profits growing nearly three times faster than the country's GDP between FY20 and FY25, a new report said on Thursday.

The profit-to-GDP ratio has risen significantly to 6.9 per cent -- reflecting strong earnings performance despite economic challenges, according to the data compiled by Ionic Wealth (Angel One).

The report, titled ‘India Inc. FY25: Decoding Earnings Trends & Path Ahead’, highlights that FY25 was a resilient year for Indian companies.

Revenue of Nifty 500 firms grew by 6.8 per cent year-on-year (YoY), while EBITDA rose by 10.4 per cent and profit after tax (PAT) increased by 5.6 per cent.

Notably, mid-cap and small-cap companies outshined large-cap firms in terms of profit growth, recording 22 per cent and 17 per cent PAT growth respectively, compared to just 3 per cent for large caps.

The Indian stock market saw strong performance across all segments in June, with the Nifty Smallcap 250 index leading the way with a sharp gain of 5.73 per cent, a new report said on Thursday.

The Nifty Midcap 150 followed with a 4.09 per cent rise during the month, according to the data compiled by Motilal Oswal Asset Management Company (AMC).

Not only did small and mid-cap stocks deliver robust returns in June, but their performance over the past three months has also been impressive.

The Nifty Smallcap 250 jumped 17.83 per cent in the Q1 FY26, while the Nifty Midcap 150 climbed 15 per cent during the same period.

Large-cap indices, too, joined the rally. The benchmark Nifty grew by 3.1 per cent, and the Nifty Next 50 was up 3.35 per cent in June.

The growth in India's services sector activity surged to a 10-month high in June, driven by robust demand in both the domestic and export markets, according to an HSBC survey released on Thursday.

The seasonally adjusted HSBC India Services PMI Business Activity Index, compiled by S&P Global, rose from 58.8 in May to 60.4 in June. The PMI threshold of 50.0 is neutral mark that separates growth from contraction on the index.

New orders expanded at the quickest rate since August 2024. Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business. Overseas demand particularly improved from the Asian, Middle Eastern and US markets, according to panel members, the survey states.

The Indian benchmark indices opened higher on Thursday amid positive global cues, as buying was seen in the IT, pharma and auto sectors in the early trade.

At around 9.25 am, Sensex was trading 68.28 points or 0.08 per cent up at 83,477.97 while the Nifty added 19.30 points or 0.08 per cent at 25,472.70.

Analysts said they are only consolidating the bullish rectangle breakout and as long as the 25,200-25,270 area is protected, bulls are merely taking a breather.

“Under 25,200, we risk 25,000. On the upside, the recent swing high at 25,670 is where the bullish trigger lies," said Akshay Chinchalkar, Head of Research, Axis Securities.

With the deadline for the US tariff pause expiring next week, it will be interesting to see if the current optimism globally holds up.

The Ministry of Steel clarified on Wednesday that it has issued Quality Control Orders for the enforcement of 151 BIS Standards. The last Quality Control Order was issued in August 2024, and no new Quality Control Order has been issued since then.

The ministry made it clear that its order dated June 13 is merely to clarify that in the case of intermediate material for manufacturing of final products under BIS Standards, steel products will also have to follow BIS Standards prescribed for such intermediate products.

The stock markets ended lower on Wednesday, as investor sentiment remained cautious due to US President Donald Trump's firm stand on the upcoming tariff deadline.

The nervousness led to a risk-off mood among investors, pulling the benchmark indices lower.

After rising to an intra-day high of 83,935.29, the Sensex lost momentum and closed at 83,409.69, down 287.6 points or 0.34 per cent.

The Nifty also declined by 88.45 points or 0.35 per cent to end the day at 25,453.4.

As the monsoon continues its journey across the country, the Indian Meteorological Department (IMD) on Wednesday predicted light to heavy rainfall in Delhi and several other regions over the next week.

IMD scientist Akhil Shrivastava, said the national capital can expect sporadic rainfall in the coming days.

"Monsoon officially arrived in Delhi on June 29, accompanied by light showers. Our forecast suggests that during the next seven days, Delhi may experience light to heavy rainfall. There will also be periods of partly cloudy skies, with chances of thunderstorms and lightning," he said.

Shrivastava emphasised that while rain will occur, it is likely to remain on the lighter side in Delhi for most of the week.

Moving beyond the capital, the IMD has issued significant warnings for several states expecting intense rainfall.

India's manufacturing activity accelerated to a 14-month high in June, triggered by a surge in international sales that boosted production and led to record-breaking hiring, according to a latest survey.

The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 58.4 in June from May's 57.6. The headline figure was above its long-run average of 54.1 and pointed to a substantial improvement in the health of the sector.

“Companies also welcomed one of the fastest increases in external orders in over 20 years of survey history. Goods producers lifted input buying to the greatest extent in 14 months, which supported a further expansion in stocks of purchases," the survey stated.