Indian equities turn volatile after a cautious start as investors track Nvidia earnings, US inflation data, crude oil prices, rupee movement and geopolitical developments

Indian benchmark indices turned volatile during Thursday morning trade after giving up their initial gains. Investors remained cautious amid mixed global signals, developments in West Asia and uncertainty over the direction of US monetary policy.

The BSE Sensex fell 92.77 points, or 0.12%, to 77,380.17, while the Nifty50 declined 19.30 points, or 0.08%, to 24,188.45, as of 10:00 AM.

The Sensex had opened slightly higher but subsequently slipped into negative territory, trading nearly 300 points below the day's high.

Meanwhile, broader markets continued to outperform the benchmarks. The Nifty MidCap 100 gained 0.36%, while the Nifty SmallCap 100 rose around 0.31%.

Global Cues Keep Markets Choppy

Investors are closely monitoring global developments for direction, with the latest Nvidia earnings emerging as an important trigger for technology and AI-related stocks.

Nvidia's performance is particularly significant for global equity markets because of its exposure to the artificial intelligence investment cycle. Strong earnings and guidance could support technology sentiment, while any disappointment could increase volatility in global markets.

US inflation data is another major focus as investors assess the potential trajectory of interest rates and liquidity conditions.

West Asia Tensions Add to Uncertainty

Geopolitical developments in West Asia remain an important risk factor for Indian markets.

Any escalation could affect crude oil prices, shipping costs and global supply chains. Higher oil prices are particularly important for India because the country remains heavily dependent on imports to meet its crude requirements.

A sustained increase in crude prices could put pressure on the rupee and India's import bill while increasing input costs for several industries.

Nifty Struggles Below 24,200

The Nifty50 slipped below the 24,200 level during morning trade after failing to hold its opening gains.

Market participants are likely to watch the 24,000–24,200 zone closely for signs of buying support. A sustained recovery above 24,200 could improve sentiment, while continued weakness could bring the 24,000 mark into focus.

The benchmark's movement is also being influenced by heavyweight banking, power and energy stocks.

Mid- and Small-Cap Stocks Outperform

Despite weakness in the benchmark indices, broader markets remained relatively firm.

The Nifty MidCap 100 rose 0.36%, while the Nifty SmallCap 100 gained 0.28–0.31% during early trade.

The relative strength indicates continued investor interest in select mid- and small-cap companies. However, stock-specific earnings, valuations and liquidity conditions remain important considerations as investors assess the sustainability of broader-market gains.

IT and Pharma Lead Early Sectoral Gains

Most major sectoral indices opened higher, with IT and pharma among the early outperformers.

IT stocks could benefit from expectations around global technology spending and the broader AI-led investment cycle. Pharma stocks also remained firm amid defensive buying interest and company-specific developments.

However, gains remained uneven as investors continued to adjust positions following recent market movements.

Metal and Realty Stocks Remain Strong

The Nifty Metal and Nifty Realty indices were among the stronger sectoral performers.

Metal stocks continued to attract buying interest amid expectations around industrial demand, infrastructure spending and commodity prices.

Realty stocks also remained resilient as investors tracked housing demand, interest rates and the broader domestic economic environment.

Auto and Cement Stocks Underperform

On the weaker side, Nifty Auto and Nifty Cement were among the sectors facing selling pressure.

Auto stocks remained sensitive to demand expectations, input costs and company-specific quarterly developments, while cement counters continued to see profit-taking after their recent gains.

FMCG Stocks Drag

The FMCG index was another weak pocket of the market.

Emami, United Spirits and Hindustan Unilever were among the notable losers in the Nifty FMCG index.

The weakness in heavyweight FMCG names added pressure to the sector even as several other defensive and consumption-linked stocks remained relatively stable.

Sensex Gainers and Losers

Among Sensex constituents, Bajaj Finance, Sun Pharma and Tech Mahindra were among the leading gainers during early trade.

On the other hand, Power Grid, HDFC Bank and NTPC were among the stocks weighing on the benchmark.

The mixed performance of index heavyweights contributed to the Sensex's volatile movement after the opening bell.

Juniper Green Energy Falls Despite Strong Q1 Profit Growth

Juniper Green Energy shares declined around 4% to an intraday low of ₹256.80 on the NSE following the company's Q1FY27 results.

The renewable energy company reported a 54.4% year-on-year increase in consolidated net profit to ₹33.5 crore during the quarter.

Despite the strong profit growth, the stock came under pressure as investors assessed the results alongside valuations and future growth expectations.

RBI Supports Rupee Amid Oil Volatility

Currency movements are also being closely watched by equity investors.

The Reserve Bank of India has stepped up intervention in the foreign exchange market amid heightened volatility in the rupee, particularly as crude oil prices remain unpredictable.

A weaker rupee can increase the cost of imported commodities and energy, while exporters and companies with significant foreign-currency revenue can benefit from favourable currency movements.

IPO Market Maintains Strong Momentum

India's primary market continues to attract significant investor participation.

According to the data cited in the live market update, 53 companies have listed on Indian exchanges so far in 2026, of which 40 debuted above their IPO issue price.

The strong listing performance indicates continued appetite for new equity offerings, although post-listing performance remains dependent on earnings growth, valuations and broader market conditions.

Domestic Economy Provides Support

While global factors are creating uncertainty, the domestic economic backdrop remains relatively supportive.

Strong manufacturing and services activity, resilient domestic consumption and continued infrastructure spending have helped provide underlying support to Indian equities.

This strength is particularly visible in the performance of several domestic-facing sectors and the broader market.

Key Factors to Watch Through the Day

Investors are likely to track several triggers as the session progresses:

• Nifty's ability to hold the 24,000 level

• Sensex movement and performance of heavyweight stocks

• Nvidia's earnings and global technology sentiment

• US inflation and interest-rate expectations

• Crude oil price movements

• Rupee volatility and RBI intervention

• Developments in West Asia

• FII and DII trading activity

• Stock-specific reactions to Q1FY27 results

With the benchmark indices losing their early gains, the market is currently showing a clear divergence between large-cap stocks and the broader market. Mid- and small-cap indices remain relatively firm, while investors continue to balance strong domestic fundamentals against global macroeconomic and geopolitical risks.