Sensex, Nifty stage late recovery after three-day slide

The Sensex and Nifty staged a late recovery on Thursday after three straight sessions of losses, with the Sensex closing 138.38 points higher at 74,902.60.

The Nifty added 46.80 points to end at 23,477.80, with both benchmarks swinging through a volatile closing auction before settling in the green.

Crude oil prices remained above $100 a barrel throughout the session, the same factor that had pressured markets over the prior three days.

Market watchers described the gains as a technical bounce, noting the underlying crude oil and West Asia tensions remained unresolved.

Broader mid-cap and small-cap indices had outperformed the large-cap benchmarks through the recent volatile stretch.

Market participants described the session as a technical bounce after three consecutive days of losses, rather than a decisive shift in sentiment.

The BSE Sensex and NSE Nifty are the two primary benchmark indices tracking the overall health of the Indian stock market.

Foreign institutional investor flows and crude oil price movements remained the two factors analysts pointed to as most likely to determine the market’s next direction.

Broader mid-cap and small-cap indices have shown more resilience than the large-cap benchmarks through the recent volatile stretch.

Indian equity markets have been closely tracking global cues, including US interest rate expectations and Gulf region developments, through September.

Wednesday’s session snapped a three-day losing streak for the Sensex and Nifty, which had fallen on each of the three preceding sessions amid crude oil price pressure.

The recovery came in a volatile closing auction session, with both benchmark indices swinging between gains and losses before settling higher.

Crude oil prices remained above $100 a barrel during the session, continuing to weigh on sentiment even as the indices posted a net gain.

West Asia tensions and their impact on oil supply have been a recurring driver of Indian market volatility through much of September.

Bombay Stock Exchange building, Mumbai, Wikimedia Commons, CC BY 2.0