Benchmark indices Sensex and Nifty ended lower for the third straight session on Thursday, in line with weak trends in global markets as the ongoing Iran-Israel conflict continues to weigh on investors' sentiment.
The US Fed's decision to keep interest rates unchanged also dampened market sentiment, experts said.
In a largely volatile trade, the 30-share BSE Sensex declined 82.79 points, or 0.10 per cent, to settle at 81,361.87. During the day, it hit a high of 81,583.94 and a low of 81,191.04, gyrating 392.9 points.
The 50-share NSE Nifty dipped 18.80 points or 0.08 per cent to 24,793.25.
"The Indian equity index experienced range-bound movement with a negative bias as cautious sentiment spread across the globe, driven by concerns over the potential US involvement in the Middle East conflict.
"Investor mood was further affected by the Fed's decision to keep interest rates unchanged while signalling persistent inflation and slower economic growth, which weighed on software export stocks," Vinod Nair, Head of Research, Geojit Investments Limited, said.
From the Sensex firms, Adani Ports, Bajaj Finance, Tech Mahindra, IndusInd Bank, Nestle and Tata Steel were among the major laggards.
In contrast, Mahindra & Mahindra, Titan, Larsen & Toubro, Bharti Airtel and Maruti were among the gainers.
In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in the negative territory, while South Korea's Kospi ended marginally higher.
European markets were trading lower in mid-session deals.
US markets ended on a mixed note on Wednesday.
Global oil benchmark Brent crude climbed 0.26 per cent to USD 76.90 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 890.93 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs) lapped up equities worth Rs 1,091.34 crore.
On Wednesday, the 30-share BSE Sensex declined by 138.64 points or 0.17 per cent to settle at 81,444.66. The Nifty edged lower by 41.35 points or 0.17 per cent to settle at 24,812.05.
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