Indian equity markets remained volatile on Thursday, with the Sensex and Nifty swinging between gains and losses in early trade as investors weighed the impact of the US Federal Reserve’s latest rate decision, elevated crude oil prices and continued global uncertainty.
The BSE Sensex opened lower and moved in a narrow range, while the Nifty 50 stayed around the 23,200 level. Sensex was up about 0.16% at 74,452.88, while the Nifty had gained 0.26% at 23,279.45. The benchmarks were supported by selective buying after the recent sell-off, but gains remained limited.
The market is coming off a period of heavy pressure. The Sensex has fallen nearly 4% over the past five weeks, while the Nifty has also remained under pressure. The recent weakness has been linked to concerns over crude oil, foreign fund flows, geopolitical tensions and uncertainty over global interest rates.
Among the prominent gainers in early trade were Reliance Industries, Bajaj Finance, Bharat Electronics, Mahindra & Mahindra and Eternal. Auto and PSU bank stocks also attracted buying interest. Banks and financial stocks were among the sectors helping the broader market stay afloat.
On the losing side, HDFC Bank, Infosys, Tata Consultancy Services, ICICI Bank and Bharti Airtel came under pressure. IT stocks remained particularly weak after the US Federal Reserve raised interest rates, raising concerns that higher borrowing costs could affect technology spending by American companies, an important market for Indian IT firms.
The mixed movement meant that the headline indices did not show a clear direction even as several stocks recorded sharper moves. The Nifty traded between 23,193.65 and 23,267.70 in the early session, highlighting the cautious mood in the market.
A major trigger for Thursday’s trade was the US Federal Reserve’s decision to raise its benchmark interest rate by 25 basis points. The move took the US policy rate to a range of 3.75% to 4%. It was the Fed’s first rate increase in more than three years.
The Fed also indicated that further tightening could follow. Its latest projections showed that 16 of 18 policymakers expected at least one more 25-basis-point increase before the end of 2026. That outlook has kept global investors cautious because higher US interest rates can support the dollar and make emerging-market assets relatively less attractive.
Indian IT stocks felt the pressure from the Fed decision. The Nifty IT index was down around 0.7% in early trade, with investors concerned that higher US borrowing costs could weigh on corporate technology spending.
Oil prices remain another important factor for Indian markets. Brent crude was trading around $106 a barrel, although it eased slightly after reports that Saudi Arabia was offering additional oil cargoes through Oman. The moderation offered some relief, but crude remains high enough to remain a concern for an import-dependent economy such as India.
The rupee also remained under pressure. The Economic Times reported that the Indian currency weakened past ₹96 against the US dollar for the first time in more than a month during Thursday’s trading session. Persistent dollar demand from importers and oil companies has added pressure to the currency.
At the same time, investors are closely watching the primary market as the National Stock Exchange prepares for its much-awaited IPO. The exchange plans to raise up to ₹22,562 crore through an offer for sale by existing investors, adding another major event to an already active IPO calendar.
After several sessions of selling, some investors are returning to select stocks at lower prices. Banks, financial companies and broader market stocks have seen buying interest, suggesting that investors are picking individual opportunities rather than making broad-based bets.
Market sentiment, however, remains sensitive to global cues. High crude prices, the Fed’s tighter interest-rate stance, currency movements and geopolitical developments are likely to keep the Sensex and Nifty volatile through the session.
The immediate focus will remain on whether buying support can hold at lower levels and whether IT weakness continues to offset gains in banks, autos and other sectors.