The Indian stock market saw sharp upswings and downswings on Thursday, before the Sensex and Nifty ended the session in the red amid expiry-day volatility, as the escalating Iran-US war spooked investors. Sensex dropped more than 151 points to close at 73,832, while Nifty declined over 53 points to end the session at 23,162 on Thursday. Broader markets continued to record losses, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling around 0.6% and 0.5%, respectively.
"Domestic markets witnessed a modest rebound on dip-buying as oil prices eased, despite the recent US–Iran escalation. However, the recovery proved fleeting, weighed down by an increasingly fragile global backdrop. Banking and pharma stocks attracted buying interest, supported by resilient earnings, favourable RBI measures, and a shift toward defensive sectors. In contrast, mid and small caps saw profit booking after their recent outperformance, indicating signs of near-term consolidation. IT stocks also lagged amid concerns that stronger US inflation could delay interest rate cuts and keep global financial conditions tight. Global cues remained mixed, with major central banks continuing to signal a hawkish stance. The expected ECB rate hike has further heightened concerns around liquidity tightening and its potential impact on emerging market flows,” said Vinod Nair, Head of Research at Geojit Investments.
