Benchmark stock market indices fell sharply on Thursday as global cues continued to dampen the mood on Dalal Street.

The S&P BSE Sensex fell 434.46 points to 65,104.96, while the NSE Nifty50 fell 119.40 points to 19,345.60. Broader market indices were mixed in the wake of rising volatility.

All the major sectoral indices were in the red, with deep losses in Nifty FMCG, Nifty IT and Nifty Oil & Gas.

The top five gainers on the Nifty50 were Adani Ports, Titan, Adani Enterprises, SBI and Bajaj Auto. On the other hand, the top drags were ITC, LTIM, Power Grid, Reliance and L&T.

The domestic markets have been facing a wave of weakness for the past few sessions due to nervousness among investors on Dalal Street, following a surge in retail inflation in July and souring global sentiments.

Asian markets have been dwindling in the wake of China's economic struggles, which have been increasing in the wake of lower activity and slowing global demand.

While China's economic hurdles are pulling down Asian markets, Europe is facing its own set of problems, aggravated by extreme weather events and several countries are facing higher inflationary pressure.

"Domestic markets succumbed to pressure and closed in the red today, in contrast to the previous two trading sessions wherein markets regained strength post a weak opening. Multiple factors added to the worries including the release of FOMC minutes indicating further rate hikes and increasing shakiness of China’s economy," said Riches Vanara, Technical And Derivatives Analyst, StoxBox.

In such a scenario, the mood on Dalal Street may remain somber for the next few sessions, but analysts remain upbeat about the fundamentals of benchmark market indices.

Om Mehra, research analyst at Choice Broking, said, "Bears retained their dominance on Dalal Street as benchmark indices failed to reclaim their previous day's closing level. Short-term investors may opt for stock-specific action. In the longer time frame, the index is still trading with lower high-and lower lows patterns. Traders may expect range-bound movement until 19,234-19,550 are taken out."