The Indian equity markets posted notable losses early on Thursday amid renewed pressure from global bond yields, which is outweighing the supportive effect of softer crude prices.

As of 9.23 am, Sensex declined 564 points, or 0.75 per cent, to reach 74,263 and Nifty lost 205 points, or 0.88 per cent to reach 23,240.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 declined 0.95 per cent, and the Nifty Smallcap 100 lost 0.66 per cent.

Sectoral indices on NSE traded in red except Nifty IT and pharma which made marginal gains. Nifty Financial services 25/50 was the top loser, down 1.73 per cent, followed by private banks, down 1.67 per cent.

The US 10-year Treasury yield moved above 5 per cent, pressuring technology stocks and weakening global risk appetite.

Brent declined to around $97 after the US Energy Information Administration reported an unexpected 2.97-million-barrel increase in crude inventories, against expectations of a 0.6-million-barrel decline.

Global sentiment has weakened amid rising US Treasury yields and an increasing Dollar Index, adding pressure on emerging market sentiment.

Renewed uncertainty around the US-Iran conflict has further increased risk aversion, while markets will also closely watch the meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping, for trade and technology-related developments.

In the previous session, Nifty closed at 23,446, up 0.50 per cent, after opening mildy higher. Immediate support is placed at 23,000–23,150, while resistance is seen at 23,450–23,500.

Bank Nifty closed at 56,548, up 0.60 per cent. Immediate support is placed at 56,000–56,200, while resistance is seen at 56,700–57,000.

In Asian markets, China's Shanghai index shed 1.04 per cent, and Shenzhen lost 1.88 per cent, Japan's Nikkei added 1.33 per cent, and Hong Kong's Hang Seng Index declined 0.46 per cent. South Korea's Kospi added 0.9 per cent.

Wall Street closed lower after strong US business-activity data revived expectations of another Federal Reserve rate increase. Nasdaq shed 1.13 per cent. The S&P 500 lost 0.75 per cent, and the Dow Jones shed 0.68 per cent.

On September 23, foreign institutional investors (FIIs) net bought equities worth Rs 1,617 crore, while domestic institutional investors (DIIs) bought equities worth Rs 2.341 crore.