The Indian stock market closed in the green on Thursday, with Sensex and Nifty reversing all intraday losses during the closing auction session (CAS) to snap a three-session losing streak even as oil prices remained elevated above $102 per barrel. Sensex gained 138 points to close at 74,903 on its weekly expiry day, while Nifty 50 gained 46 points to end the session at 23,478.

Notably, both the benchmark indices were trading in the red before the CAS, during which they reversed all losses to swing into the green. Here's how analysts read the market pulseWhile Dalal Street took a sigh of relief, caution is warranted.

The prospect of synchronized monetary tightening strengthened as higher crude prices and prolonged geopolitical tensions reinforced energy-led inflation concerns, said Vinod Nair, Head of Research at Geojit Investments. He added that investors now await key US inflation data for cues on the rate trajectory.

Meanwhile, rising global bond yields, coupled with concerns over a potential yen carry trade unwind amid expectations of a BOJ rate hike and a stronger yen, are likely to keep capital flows into emerging markets under pressure. The domestic market endured a choppy session on expiry day amid weak Asian cues, as investor focus remained closely tethered to the volatility in crude prices, he said.

“Although the strong August equity fund flow data and the moderation in the SIP stoppage ratio lent support to the markets, sentiment was tempered by the depreciating rupee and firming domestic bond yields,” according to the analyst. US stocksWall Street's main indexes tumbled early Thursday as oil prices remained above $100 a barrel, while traders digested an uptick in US wholesale inflation driven by steeper energy costs.

3 percent that analysts expected. 4 percent.

1 percent in the month. 35 percent, the highest level since 2007, after the latest inflation data.

Meanwhile, the price of Brent crude stood around $105 per barrel while West Texas Intermediate hovered at about $100 per barrel. European marketsEuropean shares fell to near two-month lows on Thursday as expectations of further interest rate hikes grew after the European Central Bank increased borrowing costs and warned of higher inflation due to war-driven energy shock.

73 points, as of 1339 GMT, with most major regional markets trading ‌in the red. -Israeli war on Iran does not spread through the euro zone economy.