Sensex Swings 1,000 Points During CAS, Settles 138 Points Higher; Nifty Ends Above 23,450

The domestic equity markets snapped their three-day losing streak on Thursday, with the Sensex and Nifty ending higher as gains in banking, power and select heavyweight stocks helped offset weakness in metals, pharma and technology shares.

The Sensex rose 138.36 points, or 0.19%, to 74,902.59, while the Nifty gained 46.30 points, or 0.20%, to 23,477.80. The Nifty had opened at 23,446.60 and moved between an intraday high of 23,494.95 and a low of 23,380.10.

During the closing auction session, the Sensex swung nearly 1,000 points in the last few minutes on its weekly expiry day on Thursday.

The recovery came after both benchmarks fell sharply in the previous session, with investors remaining cautious amid elevated crude oil prices and weak global

cues. Brent crude remained above the $100-a-barrel mark as escalating tensions in the Middle East raised concerns over energy supplies and inflation.

Banking stocks provided key support to the benchmarks. The Nifty Bank gained 0.31%, while the Nifty Financial Services index advanced 0.57%. The Nifty Private Bank and PSU Bank indices rose 0.34% and 0.40%, respectively.

Among individual stocks, Power Grid was the top Sensex gainer, rising 2.27%, followed by Axis Bank, UltraTech Cement, NTPC, Tech Mahindra and Bharti Airtel. HDFC Bank, Larsen & Toubro, Kotak Mahindra Bank and Bajaj Finance also ended higher.

On the other hand, HCLTech fell 2.43%, making it the biggest laggard among the major stocks. Tata Steel, Trent, ITC, BEL and Adani Ports also declined. M&M, Asian Paints, Bajaj Finserv, Sun Pharma and Infosys were among other notable losers.

The broader market remained mixed despite the benchmark recovery. The Nifty Midcap 100 declined 0.37%, while the Nifty Midcap 50 fell 0.36%. The Nifty Smallcap 100 slipped 0.06%, although the Smallcap 250 edged up 0.03%.

Sectoral performance was also divided. Nifty Media gained 0.53%, while PSU Bank, Private Bank and Financial Services ex-Bank indices advanced. In contrast, Nifty MidSmall IT & Telecom fell 0.74%, Nifty Metal declined 0.67%, Pharma lost 0.50% and Auto dropped 0.41%.

The India VIX declined 1.78% to 11.71, signalling some easing in near-term market volatility.

Vinod Nair, head of research at Geojit Investments, said, “The prospect of synchronized monetary tightening strengthened as higher crude prices and prolonged geopolitical tensions reinforced energy-led inflation concerns. Investors now await key US inflation data for cues on the rate trajectory. Meanwhile, rising global bond yields, coupled with concerns over a potential yen carry trade unwind amid expectations of a BOJ rate hike and a stronger yen, are likely to keep capital flows into emerging markets under pressure.”

He added that the domestic market endured a choppy session on expiry day amid weak Asian cues, as investor focus remained closely tethered to the volatility in crude prices. Although the strong August equity fund flow data and the moderation in the SIP stoppage ratio lent support to the markets, sentiment was tempered by the depreciating rupee and firming domestic bond yields.