The Indian equity markets witnessed a volatile session on Thursday, closing in the red due to broad-based profit booking across sectors. The BSE Sensex declined 387 points to settle at 83,911, while the NSE Nifty slipped below the 25,350 mark, reflecting investor caution after recent record highs.

Market participants booked profits in IT, banking, and FMCG counters, leading to a drag on benchmark indices. Heavyweights such as Reliance Industries, HDFC Bank, and Infosys contributed to the downside, trimming earlier intraday gains.

Despite the overall weakness, Adani Group stocks stole the spotlight, staging a strong rally with Adani Enterprises, Adani Ports, and Adani Power posting notable gains. The renewed investor interest in these counters provided some cushion to the broader market.

Midcap and smallcap indices also came under selling pressure but outperformed the frontline indices on relative terms. Analysts pointed out that the correction was expected, given the sharp run-up in the past few weeks.

Global cues remained mixed, with Asian markets largely subdued ahead of the US Federal Reserve’s upcoming policy signals. Foreign Institutional Investors (FIIs) were seen turning cautious, adding to the profit booking sentiment. 

Market experts believe that the ongoing correction is healthy for the long-term trend and could offer attractive entry points for investors. Traders, however, are advised to remain selective and watch key support levels for Nifty around 25,200.

With corporate earnings season around the corner and global macroeconomic factors in play, volatility is likely to remain elevated in the near term.