Indian stock markets managed to break a three-session losing streak on Thursday, September 10, as buying in key heavyweight stocks helped the benchmarks recover from a weak afternoon session. The Sensex ended 138.36 points, or 0.19%, higher at 74,902.59, while the Nifty 50 gained 46.30 points, or 0.20%, to close at 23,477.80.
The session was far more volatile than the final numbers suggested. The Sensex and Nifty moved between gains and losses through most of the trading day as investors remained cautious about rising crude oil prices and continued geopolitical tensions. The real turnaround came during the closing auction session, when heavy buying pushed both indices sharply higher before they settled with modest gains.
The Sensex had slipped around 135 points and the Nifty was down more than 40 points shortly before the closing auction. The sharp late recovery was particularly notable because Thursday also marked the weekly derivatives expiry for the Sensex, adding to intraday volatility and sudden swings in stock prices.
Power Grid emerged as the top Sensex gainer, rising 1.82%. Tech Mahindra followed with a gain of 1.14%, while Bharti Airtel advanced 0.85% and Axis Bank added 0.61%. State Bank of India, ITC and Infosys were also among the stronger names during the session.
HDFC Life was another notable gainer, with its shares rising around 2%. The broader market also saw interest in several individual stocks. Molbio Diagnostics climbed 16% during the day, extending its two-day gain to nearly 30%. IRB Infrastructure also advanced after reporting a 25% year-on-year increase in August toll revenue, while Dilip Buildcon gained after receiving a letter of intent for a major petroleum pipeline project.
On the losing side, Tata Steel was the biggest Sensex laggard, falling 1.62%. IndiGo declined 1.27%, while ICICI Bank slipped 1.01%. Mahindra & Mahindra, Adani Ports, Reliance Industries, Sun Pharma, InterGlobe Aviation and Bharat Electronics also featured among stocks under pressure at different points during the session.
The recovery in Indian equities came despite continued pressure from the global crude oil market. Brent crude remained above the $100-a-barrel mark and crossed $102 during the day, as concerns over supply disruptions linked to the Iran-US conflict continued to weigh on investor sentiment. Higher oil prices are particularly important for India because the country relies heavily on imports to meet its energy needs.
A sustained rise in crude can put pressure on India’s inflation outlook, corporate margins and the rupee. The Indian currency had already weakened to around ₹95.08 against the US dollar on Wednesday, adding another concern for investors.
Global markets also remained cautious. Asian equities fell during the morning session, with Japan’s Nikkei and South Korea’s Kospi coming under pressure. Wall Street had also ended lower in the previous session as rising oil prices revived worries about inflation and interest rates. Investors are now watching upcoming US inflation data, including the Producer Price Index and Consumer Price Index, for clues about the Federal Reserve’s next policy move.
The previous day’s heavy sell-off had left investors on edge. On Wednesday, the Sensex had plunged 813.35 points to 74,764.23, while the Nifty dropped 203.60 points to 23,431.50. IT stocks were among the worst hit, with HCL Technologies, Infosys, Tech Mahindra and TCS posting sharp declines. The fall came as crude crossed $100 and tensions in West Asia intensified.
Thursday’s rebound therefore offered some relief, but it did not completely change the cautious mood in the market. The Nifty remains below key levels seen earlier in the year, while the Sensex has also faced repeated selling pressure in recent sessions.
Foreign investors have remained a source of pressure. On Wednesday, foreign institutional investors sold Indian equities worth ₹583 crore, while domestic institutional investors bought shares worth ₹1,509 crore. The stronger domestic buying provided some support to the market amid continued foreign selling.
Another development during Thursday’s session was a brief outage at the BSE. The exchange said an issue affecting one partition of the cash segment began around 9:42 am and was resolved by 10:08 am, while other parts of the exchange continued to operate normally.
The market is now heading into another session with crude prices, geopolitical developments, global bond yields and US inflation data likely to remain key drivers. Thursday’s late recovery showed that buyers are still willing to step in after sharp declines, but the sharp swings also underline how sensitive Indian equities remain to global risks.
With oil above $100 and September already proving difficult for equities, investors are likely to remain selective.