Indian benchmarks trade in a narrow range amid cautious global cues and elevated crude oil prices; PSU banks outperform while auto stocks remain under pressure

Indian equity markets remained largely range-bound in Thursday’s morning session as investors adopted a cautious approach amid persistent geopolitical tensions, elevated crude oil prices and mixed global cues. The benchmark indices opened with marginal gains but lacked strong momentum, with the Nifty50 hovering around the 23,400 mark and the Sensex near 74,800.

At 10:00 AM, the Sensex was up 44.77 points, or 0.06 per cent, at 74,809.00, while the Nifty50 was almost flat at 23,430.50. The subdued movement reflected a balance between selective domestic buying and continued concerns over global risk factors.

Market participants remained focused on crude oil prices, foreign fund flows and developments in West Asia, with higher energy prices posing a potential risk to India’s inflation and external balance.

Sensex and Nifty Remain Range-Bound

The headline indices showed limited movement during the first hour of trade. Investors appeared reluctant to take aggressive positions following recent volatility in global markets.

The Nifty50 remained close to the 23,400 level, while the Sensex continued to trade around 74,800. The absence of a broad-based buying trigger resulted in selective movement across individual stocks and sectors.

The market’s near-term direction is expected to remain closely linked to global developments, particularly movements in crude oil and overseas equity markets.

PSU Banks Emerge as Top Performers

Public-sector banking stocks emerged as one of the strongest pockets of the market during the morning session.

The Nifty PSU Bank index gained more than 1 per cent, with Bank of Baroda, Canara Bank and Punjab National Bank among the leading gainers.

The strength in PSU banks provided some support to the broader market as investors continued to track expectations around credit growth, asset quality and banking-sector profitability.

The sector has also remained an important area of investor interest amid expectations of sustained domestic economic activity and improving lending opportunities.

Novartis India Shares Jump 14%

Novartis India emerged as one of the biggest individual gainers on Thursday. The stock surged 13.6 per cent to an intraday high of ₹2,484 per share on the NSE.

The sharp rise came despite the absence of an immediately identified major fundamental trigger. The sudden buying interest placed the stock firmly among the day’s most closely watched counters.

Investors will now track whether the stock can sustain the sharp gains or witness profit booking after the steep intraday move. Such moves without a clearly identified catalyst can result in heightened volatility.

Tata Investment Surges Nearly 10%

Tata Investment Corporation also witnessed strong buying interest in the morning session.

The stock jumped 9.8 per cent to ₹679.40 on the NSE before giving up part of its gains. It was later trading around ₹647.25, still higher by 4.6 per cent.

The sharp movement made Tata Investment another major stock-specific mover in Thursday’s session, significantly outperforming the benchmark index.

IRB Infrastructure Gains on Strong Toll Revenue

IRB Infrastructure Developers shares gained around 8 per cent after the company reported a substantial increase in toll collections.

The company’s toll revenue increased 25 per cent year-on-year to ₹807 crore in August, compared with ₹646 crore during August last year.

The increase in toll revenue points to stronger traffic collections across the company’s road assets and triggered buying interest in the stock.

Investors are likely to continue monitoring traffic growth and toll collections as key indicators for the performance of infrastructure and road-development companies.

Wipro Gains on Cybersecurity Initiative

Wipro shares rose 1.31 per cent to ₹169.19 on the NSE after the company introduced a CISO Command Centre with CrowdStrike for enterprise cybersecurity operations.

The initiative comes against the backdrop of rising demand for cybersecurity solutions as businesses increasingly shift critical operations to digital platforms.

The cybersecurity segment is becoming an important growth opportunity for IT service providers as enterprises increase spending on threat detection, data protection and security management.

IT Stocks Stage a Recovery

The information technology sector attempted to recover during early trade following the heavy selling pressure seen in the previous session.

The Nifty IT index rebounded, with investors looking for opportunities in selected technology stocks after the recent decline.

However, the sector remains sensitive to global technology trends, US demand, currency movements and concerns over discretionary technology spending. A sustained recovery would require stronger global cues and renewed confidence around earnings growth.

Auto Stocks Remain Under Pressure

The automobile sector remained among the weakest performers in the early session.

The Nifty Auto index declined the most among major sectoral indices, while Mahindra & Mahindra featured among the top losers in the Nifty50.

Auto stocks have remained sensitive to demand expectations, input costs and broader market sentiment. Continued selling in the sector weighed on the benchmark indices and offset some of the gains seen in banking stocks.

Sensex Gainers and Losers

At the Sensex level, SBI, Axis Bank and ITC were among the notable gainers during opening trade.

On the other hand, M&M and Tata Steel emerged among the laggards.

The divergent performance of heavyweight stocks highlighted the selective nature of Thursday’s market, with investors focusing on individual corporate developments rather than taking broad directional bets.

Midcaps and Smallcaps Show Mixed Trend

The broader market remained mixed, indicating that risk appetite had not fully returned.

The Nifty MidCap 100 index declined around 0.15 per cent during the opening session, while the Nifty SmallCap 100 index gained around 0.21 per cent.

By 10:00 AM, the Nifty MidCap and Nifty SmallCap indices were trading 0.36 per cent and 0.03 per cent lower, respectively.

The mixed trend suggests that investors are adopting a stock-specific approach, particularly amid elevated volatility and uncertainty surrounding global markets.

Crude Oil Remains a Major Concern

Crude oil continues to be one of the most important factors influencing investor sentiment.

International oil prices have remained elevated amid geopolitical tensions and concerns over supply disruptions in West Asia. For India, which depends heavily on imported crude, a sustained increase in oil prices could raise the import bill and put pressure on the trade balance.

Higher crude prices could also affect inflation expectations, the rupee and corporate margins, particularly for industries with significant fuel and transportation costs.

The market will therefore remain sensitive to every major development that could influence global oil supply.

Global Cues Keep Investors Cautious

The domestic market is also taking cues from overseas equities and global risk sentiment. Persistent geopolitical uncertainty has increased investor preference for defensive positioning, while elevated commodity prices have added another layer of uncertainty.

Any improvement in global risk appetite could provide support to Indian equities. Conversely, further escalation in geopolitical tensions or another sharp rise in crude prices could trigger renewed selling pressure.

Stock-Specific Action Drives the Session

Thursday’s trading pattern highlights the increasing importance of stock-specific developments in determining market performance.

While the benchmark indices remained almost flat, individual stocks such as Novartis India, Tata Investment and IRB Infrastructure witnessed sharp movements. At the same time, PSU banks attracted broad-based buying, while automobile stocks remained under pressure.

This divergence indicates that traders are actively rotating capital between sectors and individual companies rather than taking aggressive bets on the broader market.

Market Outlook

The Indian stock market is likely to remain range-bound in the near term, with the Nifty50 holding around the 23,400 zone and the Sensex near 74,800. Selective buying in PSU banks and individual stocks is providing support, but elevated crude oil prices and geopolitical uncertainty remain key risks.

For traders, 23,400 on the Nifty50 will remain an important near-term reference point. Sustained buying above this zone could improve sentiment, while a decisive breakdown may increase selling pressure.

Investors should closely monitor crude oil prices, global market trends, foreign institutional activity, rupee movement and West Asia developments for the next directional signal. Until a clear breakout emerges, stock-specific opportunities and sector rotation are likely to remain the dominant themes.