Indian benchmark indices Sensex and Nifty staged a partial recovery from their intraday lows on September 2, although both remained in negative territory as a global selloff weighed on domestic equities. The weakness followed heightened concerns over potential disruptions to oil flows after US Iran strikes, which pushed crude prices higher, revived inflation concerns and contributed to an increase in global bond yields.

At 10:32 am, the Sensex was down 436.99 points, or 0.57 percent, at 76,507.29, while the Nifty declined 169.30 points, or 0.70 percent, to 23,886.50. Market breadth remained weak, with 1,503 shares advancing against 2,032 declines, while 175 shares were unchanged.

The recovery from the day's lows was supported by value buying after the Nifty slipped below the 23,800 level intraday. The Sensex recovered around 350 points from its day's low, while the Nifty moved back above the psychologically important 23,900 level. The PSU Bank index also recovered nearly 1.5 percent from its intraday low, indicating selective buying interest at lower levels.

Among Nifty 50 stocks, Eicher Motors was the worst performer, declining more than 4 percent. Mahindra and Mahindra, Bajaj Auto, Maruti Suzuki India and Tata Motors Passenger Vehicles also fell 1-2 percent. Information technology stocks including Infosys, Tata Consultancy Services, Wipro and HCL Technologies declined 1-2 percent, while Shriram Finance fell nearly 2 percent.

Coal India emerged as the top gainer among Nifty 50 stocks, while Oil and Natural Gas Corporation also gained nearly 1 percent. The rise in ONGC shares came amid a sharp increase in crude oil prices. Coal India and ONGC were among the top gainers across both the Nifty 200 and Nifty 500 indices.

On the other hand, Eicher Motors and Hero MotoCorp were among the worst-hit stocks across the Nifty 200 and Nifty 500, with both declining around 4 percent. Hero MotoCorp came under pressure after reporting a 3 percent year-on-year increase in August monthly sales volumes.

Market volatility also moderated from the day's high. India VIX, the market's volatility gauge, eased from 12.11 to 11.73, suggesting that near-term selling pressure remained contained despite the broader weakness.

From a technical perspective, analysts said the Nifty needs to sustain below the 23,800 level for further bearish momentum to develop. Choice Broking identified the 24,000-23,950 zone as a crucial support area and said a decisive break and sustained move below this zone could drag the index towards 23,800 and 23,600. On the upside, 24,200 remains the immediate hurdle, followed by 24,400.