The markets gave up their early gains on Thursday as selling pressure returned in the final hours of trading. The BSE Sensex closed 417.49 points, or 0.55 per cent, lower at 76,152.86. The NSE Nifty50 declined 41 points, or 0.17 per cent, to settle at 23,873.45. The late decline came after both indices had traded higher during the first half of the session.
The market’s weakness was particularly visible during the new closing auction session (CAS). At around 3:15 pm, the Sensex was still close to the previous day’s level, but it subsequently lost more than 400 points by the final settlement. The Nifty also slipped below the important 23,900 mark.
The session had started on a more positive note. The Sensex jumped more than 200 points in early trade, while the Nifty moved above 23,950. Adani Ports and Power Grid were among the stocks supporting the initial recovery. GIFT Nifty had also indicated a positive start, pointing to gains of more than 100 points before the market opened.
However, the early optimism did not last. Investors remained concerned about the impact of elevated crude oil prices on inflation, corporate costs and economic growth. Renewed uncertainty surrounding the US-Iran conflict added another layer of risk, particularly because prolonged geopolitical tensions could disrupt energy supplies from the Middle East.
Oil prices remained a major focus for Dalal Street. Brent crude was trading around $95 a barrel during the session after prices had risen sharply in recent days. While crude eased at times on Thursday, investors continued to worry that further escalation in the Middle East could push energy prices higher.
Higher global bond yields also weighed on sentiment. Rising yields can make equities less attractive and increase concerns about financing costs and future interest-rate conditions. Investors were therefore watching global bond markets closely while also awaiting key US economic data that could influence expectations for the Federal Reserve’s monetary policy.
The selling was not uniform across the market. Banking and real estate stocks provided some support, helping limit the broader decline. The Nifty Realty index gained more than 2 per cent, while Nifty Media, Private Bank, PSU Bank and Nifty Bank also outperformed.
Broader markets were comparatively stronger. The Nifty MidCap 100 rose 0.37 per cent, while the Nifty SmallCap 100 gained 1.20 per cent. The performance indicated that buying interest remained present in several mid- and small-cap stocks even as large-cap benchmarks ended lower.
Among individual stocks, Adani Ports and Axis Bank were among the notable gainers. Adani Ports benefited from positive company-specific developments, including strong cargo volumes, while banking stocks received support from improved liquidity conditions and renewed investor interest.
On the losing side, Bajaj Auto, Tech Mahindra and Trent were among the biggest drags on the Nifty50. Information technology and automobile stocks faced pressure, with the Nifty IT and Nifty Auto indices ending among the weaker sectoral performers. Healthcare and FMCG stocks also underperformed.
Swiggy remained another stock in focus. Its shares fell for a third consecutive session after MSCI announced changes to its index treatment. Swiggy is set to be removed from MSCI’s Global Standard Indexes from September 7 after the company’s foreign ownership limit was reduced to 49.5 per cent from 100 per cent. Such index changes can affect demand from global funds that track benchmark indices.
Several other stocks attracted attention during the trading session. SML Mahindra gained more than 8 per cent after reporting strong August sales, bucking the broader market weakness. Wakefit Innovations also rose after Nomura initiated coverage with a Buy rating.
The rupee also strengthened during the session. The currency rose 67 paise to 94.30 against the US dollar in morning trade, reaching a two-month high, according to market updates. Strong foreign currency inflows and improved banking-system liquidity provided some support to financial markets.
India’s banking system was sitting on a liquidity surplus of ₹7.76 lakh crore, its highest level in more than four-and-a-half years. The increase followed substantial foreign-exchange inflows raised by banks through dedicated programmes, adding to liquidity in the domestic financial system.
Despite the day’s decline, analysts pointed to 23,800 as an important near-term support level for the Nifty. A decisive break below that zone could increase selling pressure towards 23,700-23,600, while the 24,000-24,150 range remains an important resistance area.
The market numbers are because of crude oil, geopolitical developments, global bond yields and overseas market trends. The contrasting performance of large-cap benchmarks and broader market indices also suggests that investors are becoming more selective rather than exiting equities across the board.
The September 3 trading session therefore ended with a mixed message. The Sensex and Nifty remained under pressure, but strength in banking, realty and smaller companies showed that domestic buying interest had not disappeared. With global risks still elevated, traders are likely to remain cautious and focus on stock-specific opportunities in the sessions ahead.