By Our Business Correspondent
Indian equities staged a late recovery on Thursday, snapping a three-session losing streak as buying during the closing auction helped the benchmark indices erase most of the losses accumulated during regular trading. The rebound, however, offered limited comfort to investors as crude oil remained above the $100-a-barrel mark, US Treasury yields stayed elevated and escalating tensions in the Middle East continued to cloud the global economic outlook.
The Sensex advanced 138.36 points, or 0.19 per cent, to close at 74,902.59, while the Nifty 50 gained 46.30 points, or 0.20 per cent, to end at 23,477.80. The recovery followed three consecutive sessions of declines in which the Sensex had lost 2.29 per cent and the Nifty had fallen 1.95 per cent.
The Nifty opened at 23,446.60 and moved between 23,380.10 and 23,494.95 during the regular session. Trading remained largely rangebound around the 23,400 level for most of the day before a sharp move during the closing session lifted the index to its final level of 23,477.80.
The market’s late turnaround was led primarily by banking stocks, while metal, pharmaceutical and automobile shares remained under pressure. The broader market also lacked strong participation, indicating that Thursday’s recovery was more of a tactical rebound than a broad-based change in investor sentiment.
Banks Provide Support
Among the major index constituents, Bharti Airtel rose 1.34 per cent, HDFC Bank gained 0.98 per cent and State Bank of India advanced 0.92 per cent. The strength in banking stocks helped cushion declines in several other sectors and contributed to the benchmark recovery.
The broader market presented a mixed picture. The BSE 150 MidCap Index declined 0.40 per cent, while the BSE 250 SmallCap Index was almost flat, edging up 0.01 per cent.
Market breadth remained negative, underscoring the lack of widespread buying. On the BSE, 1,926 shares advanced against 2,409 declines, while 210 shares remained unchanged.
The India VIX, which measures the market’s expectation of near-term volatility, declined 1.71 per cent to 11.72. The fall in the volatility index provided some relief, although the underlying market remained sensitive to developments in crude oil and global interest rates.
Crude Oil Remains the Biggest Risk
The biggest challenge for Indian equities continued to come from the sharp rise in global crude prices. Brent crude for November 2026 settlement rose 63 cents, or 0.62 per cent, to $101.84 a barrel.
The sustained rise in oil prices is particularly significant for India because it can affect inflation, corporate margins, the country’s import bill and the external balance. Higher energy costs can also complicate the policy outlook by making it more difficult for central banks to respond to slowing growth if inflationary pressures remain elevated.
The oil market has been unsettled by escalating tensions in the Middle East, including the widening US-Iran conflict and attacks involving oil tankers and shipping. Investors are increasingly concerned that prolonged disruption could tighten global energy supplies.
The Strait of Hormuz has emerged as a particularly important risk point for financial markets because the waterway historically handles roughly one-fifth of global oil and gas supplies. Any sustained disruption to shipments through the region could push energy prices higher and intensify inflation concerns across major economies.
For Indian companies, expensive crude can have different effects across sectors. Energy producers may benefit from higher prices, while airlines, transport companies, chemical manufacturers and other energy-intensive businesses can face higher operating costs. At the macroeconomic level, an extended oil shock could also put pressure on the rupee and widen India’s trade deficit.
Bond Yields and Rupee Add to Pressure
Domestic bond yields also moved higher. The yield on India’s 10-year benchmark government security rose to 6.978 per cent from 6.955 per cent in the previous session, an increase of 0.33 per cent.
The rupee also weakened against the US dollar. The partially convertible rupee was hovering at 95.4675 compared with the previous close of 95.0800.
The combination of higher crude prices, a softer rupee and rising bond yields remains an important concern for investors. A weaker currency can increase the domestic cost of imported commodities, particularly crude oil, while higher yields can raise financing costs and influence equity valuations.
Gold prices moved lower, with MCX Gold futures for October 5, 2026 settlement declining 0.33 per cent to Rs 1,53,202.
The US Dollar Index was marginally higher at 98.82, while the US 10-year Treasury yield rose 0.43 per cent to 4.858 per cent. Higher US yields can reduce the relative attractiveness of emerging-market assets and keep global investors cautious.
Global Markets Remain Under Pressure
The international backdrop remained challenging. Most European markets advanced on Thursday, while most Asian markets ended lower as investors continued to digest the previous session’s losses on Wall Street.
US stocks had fallen for a third consecutive session on Wednesday amid the sharp rise in crude prices and higher Treasury yields. The Dow Jones Industrial Average declined 0.77 per cent to 52,380.66, the S&P 500 fell 0.48 per cent to 7,636.36, and the Nasdaq Composite dropped 0.64 per cent to 26,253.34.
The latest decline on Wall Street came as Brent crude moved above $100 a barrel for the first time since July. Concerns over energy supplies and the potential inflationary consequences of higher oil prices weighed on investor sentiment.
US Dow Jones futures were trading around 120 points higher on Thursday, indicating a potentially positive opening for American equities.
Markets are also watching the inflation data closely. The US Producer Price Index was due on Thursday, followed by Consumer Price Index data on Friday. The readings are expected to influence expectations about the Federal Reserve’s policy decision scheduled for September 15-16.
Higher energy prices have complicated the outlook for central banks globally. If inflation remains sticky because of elevated oil prices, policymakers could be forced to maintain tighter monetary conditions for longer, potentially delaying interest-rate cuts.
Apple Unveils New Devices
In the technology space, Apple unveiled its first foldable iPhone, the iPhone Duo, along with the iPhone 18 Pro and Pro Max. The new Pro models start $100 higher than their predecessors.
Apple shares declined 0.3 per cent during Wednesday’s regular session but recovered 0.6 per cent in after-hours trading.
The pricing and market reception of Apple’s latest products will be watched closely for their potential implications for the global smartphone and consumer electronics supply chain.
Stocks in Spotlight
Several individual stocks moved sharply following company-specific developments.
Shakti Pumps (India) surged 7.74 per cent after receiving an order from Maharashtra State Electricity Distribution Company to deploy 10,000 off-grid solar photovoltaic water pumping systems across Maharashtra. The systems, with capacities of 3 HP, 5 HP and 7.5 HP, will be supplied and installed under the Magel Tyala Saur Krushi Pump Yojana. The order is valued at around Rs 235.92 crore.
Ather Energy gained 4.96 per cent to Rs 1,658.30 after a foreign brokerage reiterated its ‘Buy’ rating and raised its target price to Rs 1,926 a share.
IRB Infrastructure Developers advanced 4.56 per cent after reporting a 25 per cent year-on-year increase in gross toll revenue to Rs 807.40 crore in August 2026.
Hindustan Zinc declined 1.95 per cent despite announcing a six-year transportation agreement with MFL India for deployment of 30 electric trucks to transport zinc and lead concentrate. The contract can be extended by another two years, with the electric vehicles progressively replacing diesel trucks used between Rampura Agucha and smelting operations in Rajasthan.
Indoco Remedies was among the strongest gainers, surging 11.70 per cent after its Plant I manufacturing facility in Goa successfully completed an inspection by the UK’s Medicines and Healthcare products Regulatory Agency. The inspection concluded without any critical or major observations.
Parag Milk Foods rose 4.26 per cent after launching Avvatar Popped Chips, marking its entry into protein snacking. The non-fried product contains 10 grams of protein in a 30-gram pack and is available in Magic Masala and Pudina flavours at Rs 60.
Systematic Industries gained 1.32 per cent after securing an Rs 82.42 crore order from Power Grid Corporation of India for supply, execution and erection of optical ground wire under the OPGW-06 package.
Dilip Buildcon rose 3.64 per cent after receiving a letter of intent from the Petroleum and Natural Gas Regulatory Board for development of the Paradip-Raipur LPG pipeline.
IPO Market Shows Strongly Divergent Demand
The primary market continued to show sharply different levels of investor interest across ongoing issues.
Veegaland Developers received bids for 65,48,614 shares against 1,13,07,692 shares on offer as of 4:30 pm on September 10, leaving the issue subscribed 0.58 times. The IPO opened on September 10 and will close on September 15. Its price band is Rs 130-140 per share, with a minimum bid of 107 shares.
Prasol Chemicals was subscribed 3.28 times, receiving bids for 1,78,61,602 shares against 54,43,229 shares on offer. The issue, which opened on September 8, closes on September 10 and has a price band of Rs 643-676. The minimum bid is 22 shares.
Glass Wall Systems (India) attracted exceptionally strong demand, with 1,33,77,72,846 shares bid against 1,64,57,298 shares on offer. The issue was subscribed 81.29 times. Its price band is Rs 172-182 and the minimum bid is 82 shares.
Kanohar Electricals witnessed even stronger demand, with bids for 1,05,65,72,114 shares against 1,16,93,326 shares on offer, translating into subscription of 90.36 times. The issue has a price band of Rs 601-632 and a minimum bid size of 23 shares.
LCC Projects was subscribed 3.56 times, with 7,45,03,758 shares bid against 2,09,27,281 shares offered. The issue opened on September 9 and closes on September 11, with a price band of Rs 139-146 and a minimum bid of 102 shares.
Karamtara Engineering received bids for 8,45,05,582 shares against 2,54,14,937 shares on offer, resulting in subscription of 3.33 times. Its price band is Rs 241-254, with a minimum bid of 59 shares.
Asset Reconstruction Company (India) received bids for 2,97,42,576 shares against 3,69,12,363 shares on offer and was subscribed 0.81 times. The issue carries a price band of Rs 132-139 and a minimum bid of 107 shares.
Steamhouse India was subscribed 1.95 times, receiving bids for 7,34,49,810 shares against 3,76,36,363 shares on offer. The price band is Rs 77-81, with a minimum bid of 185 shares.
Manipal Payment and Identity Solutions remained under-subscribed at 0.29 times, with 37,98,344 shares bid against 1,30,60,472 shares on offer. The issue has a price band of Rs 322-339 and a minimum bid of 44 shares.
Rentomojo attracted stronger interest, receiving bids for 9,33,71,313 shares against 2,17,72,311 shares on offer, resulting in subscription of 4.29 times. Its price band is Rs 384-404, with a minimum bid of 37 shares.
Overall, Thursday’s session provided a measure of relief to Indian equities, but the recovery did little to remove the broader risks facing the market. With crude oil above $100, the rupee under pressure and US yields elevated, investors are likely to remain sensitive to global inflation signals and developments in the Middle East. The late-session buying may have halted the three-day slide, but a sustained improvement in market sentiment will require greater clarity on oil prices, global interest rates and geopolitical risks.
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.