Equity indices Nifty 50 and Sensex extended their meandering, directionless consolidation phase for the sixth consecutive session on Friday, July 4, with the benchmarks hovering close to the flatline.

Adding to the cautious sentiment was the ongoing India-US trade impasse, with the specter of 26 percent reciprocal tariffs looming as the July 9 deadline approaches, keeping traders on edge.

At close, the Sensex was up 193.42 points or 0.23 percent at 83,432.89, and the Nifty was up 55.7 points or 0.22 percent at 25,461. About 1881 shares advanced, 1655 shares declined, and 114 shares unchanged.

On the sectoral front, Nifty Pharma rose the most, up 0.81 percent, followed closely by Nifty Media and Nifty IT, which gained 0.82 percent and 0.74 percent respectively. Nifty PSU Bank, FMCG, Infra, and Energy indices also edged higher, adding around 0.2 to 0.3 percent each.

On the flip side, Nifty Metal and Nifty Auto were the notable laggards, slipping 0.49 percent and 0.16 percent respectively.

Echoing the trend in the benchmarks, the broader markets also traded flat. The Nifty Midcap 100 and Nifty Smallcap 100 indices were mixed, lower by 0.1 percent and higher by 0.1 percent, respectively.

Dalal Street took little comfort in the respite provided to futures and options traders following the capital markets regulator SEBI's crackdown on algo-trading giant Jane Street. Instead, shares of Nuvama Wealth Management Ltd, BSE Ltd, and CDSL Ltd, along with shares of other capital market players, took a sharp beating in trade, falling up to 10 percent.

Defence stocks saw a significant surge after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth approximately Rs 1.05 lakh crore. Paras Defence, BEL, and Zen Technologies were among the top gainers.

More than 120 stocks on the BSE touched their 52-week highs, including Glenmark Pharma, CreditAccess Grameen, Kama Holdings, Laurus Labs, Marico, LT Finance, Fortis Healthcare, Asahi India, Divis Labs, Poonawalla Fincorp, Max Healthcare, JM Financial, among others.