Indian equity markets remained largely flat in early trade on Thursday, September 10, as investors continued to assess the impact of rising crude oil prices and escalating geopolitical tensions. The Nifty 50 hovered around the 23,450 level, while the Sensex traded with limited movement.

At around 9:36 a.m., the Nifty 50 was at 23,429.25, down marginally by 0.01%, while the Sensex stood at 74,759.54, also down 0.01%.

IT and PSU Banks Show Strength

Sector-wise, buying interest was visible in parts of the IT and PSU banking segments, helping limit the broader market's downside. Investors appeared selective amid continued volatility, with several stocks witnessing stock-specific movements.

However, auto stocks remained under pressure, restricting gains in the benchmark indices.

Crude Oil Above $100 Adds Pressure

A major concern for Indian markets remains the sharp rise in crude oil prices. Brent crude moved above the $100-per-barrel mark amid intensifying tensions in the Middle East.

Higher crude prices are a concern for India because the country is heavily dependent on imports to meet its oil requirements. An extended rise in energy prices could increase inflationary pressures, widen the import bill and affect corporate profitability.

Markets Recover After Sharp Fall

The muted opening comes after a sharp sell-off in the previous session. On Wednesday, September 9, the Sensex plunged 813.35 points, or 1.08%, to 74,764.23, while the Nifty 50 fell 203.60 points, or 0.86%, to 23,431.50.

The indices have now been under pressure for several sessions, with investors closely tracking crude prices, global markets, the rupee and developments in the Middle East.

What Investors Are Watching

Market participants are expected to remain cautious as they monitor global oil prices and upcoming US inflation data, which could influence expectations around the Federal Reserve's monetary-policy decision.

For now, the Indian market remains highly sensitive to movements in crude oil and global risk sentiment. A sustained rise in oil prices could keep volatility elevated, while any easing in geopolitical tensions may provide some relief to equities.