Indian equity markets ended lower on Thursday as traders faced heightened volatility ahead of the futures and options expiry, while continuing geopolitical tensions in the Middle East weighed on investor sentiment.

The BSE Sensex declined 539.35 points, or 0.70%, to close at 76,933.59. The NSE Nifty 50 fell 116.90 points, or 0.48%, ending the session at 24,090.85.

Expiry Volatility Keeps Markets Under Pressure

Vinod Nair, Head of Research at Geojit Investments Limited, said markets could remain range-bound in the near term as expiry-related volatility and uncertainty over developments in the Middle East continue to influence trading.

He noted that easing crude oil prices and long-term bond yields could provide some relief to the inflation outlook, while foreign institutional inflows and strong corporate earnings continue to offer support to Indian equities.

Investors are also closely watching the upcoming speech by the US Federal Reserve Chair at Jackson Hole, which could provide clues about inflation, interest rates and future monetary policy.

Pharma Gains While Metal, PSU Banks Decline

Among major NSE sectoral indices, Nifty Pharma emerged as the strongest performer, rising 0.84%. Nifty Private Bank edged up 0.09%.

Several other sectors closed in the red. Nifty Metal dropped 0.86%, while Nifty PSU Bank declined 0.94%. Nifty FMCG fell 0.47%, Nifty Auto slipped 0.40% and Nifty IT declined 0.32%.

Adani Enterprises Leads Gainers

At the individual stock level, Adani Enterprises topped the gainers, rising 1.83%. Kotak Mahindra Bank gained 1.80%, followed by Adani Ports at 1.33%, Cipla at 1.23% and Bharat Electronics at 1.01%.

On the other hand, Hindalco Industries was the biggest laggard, falling 2.75%. HDFC Bank declined 2.23%, Mahindra & Mahindra dropped 2.01%, while Shriram Finance and Grasim Industries fell 1.48% and 1.27%, respectively.

Broader Market Trend Remains Positive

Riyank Arora, Associate Vice President for HNI and Derivatives at Hedged.in, described the session as a period of profit booking following recent gains. He said the broader market structure remains intact as long as key support levels hold.

Arora suggested that investors could consider a buy-on-dips approach for fundamentally strong stocks while maintaining disciplined risk management.

Brent crude was trading at USD 88.36 per barrel, up 0.60%, adding to the market’s focus on energy prices.

Asian Markets Mixed

Asian markets delivered a mixed performance. Japan’s Nikkei 225 and Hong Kong’s Hang Seng declined, while Taiwan, South Korea and Shanghai posted gains.

The KOSPI rose 1.51%, while the Shanghai Composite gained 1.11%, reflecting varied investor sentiment across regional markets.

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