Indian equity benchmarks ended a three-day slide on Thursday, with the Sensex closing 138.38 points higher at 74,902.60 and the Nifty up 46.80 points at 23,477.80.
The late recovery came during a volatile closing auction session, as crude oil prices held above $100 a barrel through the day.
The three prior sessions had seen steady declines, driven by rising crude oil prices and tensions in West Asia.
Analysts cautioned the bounce looked technical in nature, with crude oil and geopolitical risk factors still unresolved heading into the next session.
Mid-cap and small-cap indices continued to outperform the large-cap benchmarks through the recent stretch of volatility.
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.
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.
Bombay Stock Exchange building, Mumbai, Wikimedia Commons, CC BY 2.0
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