Markets Turn Volatile, Sensex, Nifty Open Session Marginally Lower

Indian markets geared up for a volatile session on Thursday. Both benchmarks traded nearly flat as markets opened for trading today. The BSE Sensex started trading at 81,403, slipping 22 points, while the NSE Nifty50 began the day at 24,972, inching lower by 1.30 points.

However, as markets progressed, both indices reversed their losses and started trading in green. Around 9:28 AM, the Sensex climbed 81 points to cross 81,500, while the Nifty inched closer to 25K after rising 20 points.

On the 30-share Sensex, Eternal, Adani Ports, NTPC, BEL, and Sun Pharma stood among the gainers in the market opening hour. Meanwhile, the laggards included Infosys, Tech M, Kotak Mahindra Bank, UltraTech Cement, and Trent.

In the broader markets, the Nifty Smallcap100 stood out with gains of 0.53 per cent. Sectorally, the Media index dominated across the board after it climbed 1.46 per cent. On the other hand, the IT index remained the largest laggard as it tanked 0.44 per cent.

Notably, both benchmarks, Sensex and Nifty, bled in the pre-open session, indicating the sentiment prevalent in the markets. The GIFT Nifty also signalled a mixed day ahead for investors.

Global Markets

Across Asia, South Korea’s Kospi, Japan’s Nikkei 225 and China’s Shanghai Composite posted advances, while Hong Kong’s Hang Seng index remained under pressure. Overnight, Wall Street closed on a mixed note, with the S&P 500 and Nasdaq recording fresh peaks as softer US PPI data supported hopes of a dovish Fed.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “India's resilient macros and the sweeping reforms implemented this year, particularly the GST reforms, have taken the economy to the cusp of a breakout growth.”

Market strategist Ajay Bagga said the Indian equity market is sustaining its upward trajectory, with information technology counters beginning to contribute to the rally. “Exchange of conciliatory and complimentary messages on social media between President Trump and Prime Minister Modi helped lift market sentiment on hopes of a trade deal,” he said.

Bagga pointed out that futures were showing mild positivity in morning trade and underlined the key triggers influencing domestic sentiment. “The GST 2.0 boost that should set in from September 22 onwards and Fitch raising Indian growth forecast for FY2026 to 6.9 per cent are driving markets with domestic consumption, durables, auto stocks in focus. Financials are also trying to recover. We expect continued positive sentiment in the markets despite the global geopolitical risks rising with Russian drones entering Poland and Israel launching an air strike on Qatar,” he said.

Flows, Oil Prices and Previous Session

Provisional exchange data showed that foreign institutional investors (FIIs) sold equities worth Rs 115.69 crore on Wednesday, snapping their brief pause. In contrast, domestic institutional investors (DIIs) emerged as significant buyers, pumping in Rs 5,004.29 crore.

“Hope of a US-India trade deal and record highs in the S&P 500 and Nasdaq on softer US PPI keep bullish momentum intact,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

In the commodities market, Brent crude futures slipped marginally by 0.07 per cent to $67.44 per barrel.

In the previous trading session, the Sensex had rallied 323.83 points, or 0.40 per cent, to close at 81,425.15, marking its third consecutive day of gains. The Nifty too advanced 104.50 points, or 0.42 per cent, to settle at 24,973.10.