Mumbai, Sep 3: Indian stock markets witnessed a volatile session on Thursday, with early gains fading later in the day as investors turned cautious amid concerns over crude oil prices, inflation and rising bond yields.
The markets opened on a positive note, supported by favourable global cues and softer crude prices. The Nifty briefly crossed the 24,000 mark in early trade, while the Sensex also moved higher.
However, the momentum could not be sustained. As the session progressed, investors opted to book profits, pulling the benchmarks lower. The selling pressure became more visible towards the close, with the Nifty slipping below the 23,900 level.
At the close, the Sensex fell 417.49 points, or 0.55 per cent, to 76,152.86. The Nifty declined 41 points, or 0.17 per cent, to settle at 23,873.45.
The broader market, however, remained relatively resilient. The Nifty Midcap index gained 0.37 per cent, while the Nifty Smallcap index rose 1.2 per cent, indicating continued interest in several mid- and small-cap stocks.
Sectoral performance remained mixed. Realty stocks faced pressure, while banking and selected other sectors provided some support. Auto, IT and pharma stocks were among the areas that witnessed selling during the session.
Crude oil remained a key concern for investors as higher energy prices could add to inflationary pressures and increase India’s import burden. Movements in global bond yields also kept market sentiment cautious.
Meanwhile, the Indian rupee showed strength during the session, supported by strong foreign-currency inflows, although oil-related dollar demand remained a concern.
With global markets remaining sensitive to oil prices, geopolitical developments and interest-rate expectations, investors are likely to remain cautious in the coming sessions.