Domestic equities managed to claw back a significant portion of their early losses on Friday, September 11, as a sharp pullback in global crude prices eased some of the pressure on oil-dependent sectors. The recovery was also aided by buying interest at lower levels after the recent market decline pushed the benchmark indices into oversold territory, encouraging value-oriented purchases.
The Nifty 50 staged a recovery of 0.72% from its intraday low, although it remained in negative territory at the close, ending 0.34% or 80 points lower at 23,398. The Sensex also pared most of its losses during the session before finishing 0.16% or 148 points lower at 74,754.
The improvement in sentiment came alongside a decline in international crude prices. Brent crude, the global benchmark, dropped 2.3% to $105.14 per barrel, retreating after having crossed the $108-per-barrel mark earlier.
For context, Brent had been trading at approximately $72 per barrel in late February, before the war began. Meanwhile, US West Texas Intermediate (WTI) crude declined 2% to $100.46 per barrel.
The Nifty 50 is showing signs of continued weakness, with the index trading below key moving averages and momentum indicators pointing towards sustained selling pressure. After the recent correction, traders are now closely watching crucial support and resistance levels to gauge whether the benchmark can stabilise or face another leg lower.