Sensex Settles Nearly 600 Points Lower From Day's High, Nifty Ends Near 23,950

Indian equity benchmarks pared a large chunk of their intraday gains on Thursday, with the Sensex settling nearly 600 points lower from its day's high even as it closed in positive territory, snapping a two day losing streak driven by escalating US Iran hostilities. The 30 share index ended at 76,741.82, up 238.22 points or 0.31 percent, while the Nifty 50 closed at 23,962.80, gaining 80.75 points or 0.34 percent, after touching a session high above the 24,050 mark earlier in the day.

Profit booking in the final hours of trade emerged as a key reason behind the retreat from the day's peak, according to market analysts. Investors who had rushed in on hopes of easing tensions in the Middle East chose to lock in gains as the rally lost steam, tempering what had briefly looked like a strong recovery session for Dalal Street . The pullback comes just a day after both indices had slumped over two percent on Wednesday following renewed US airstrikes on Iran and a surge in crude oil prices.

Analysts pointed to a mix of factors supporting the day's overall gains before the late session pullback, including indications that Iran was willing to resume negotiations, which helped crude oil cool from its recent highs, along with continued foreign institutional buying and a sharp decline in the India VIX , the market's key volatility gauge. However, lingering geopolitical uncertainty and caution ahead of the earnings season kept investors from turning aggressively bullish, prompting many to book profits rather than chase the rally further.

Sectorally, realty , banking and pharma stocks led the gains, while auto and IT counters remained under pressure. The broader market outperformed the frontline indices, with midcap and smallcap gauges advancing over one percent each, reflecting improved breadth despite the cautious undertone. Market breadth on the BSE remained strong through the session, with advancing shares comfortably outnumbering decliners.

With crude prices and the trajectory of the US Iran conflict likely to continue driving sentiment in the near term, analysts advised a cautious stance, recommending focus on relatively stronger sectors while maintaining disciplined risk management heading into the earnings season.