Indian equity benchmarks closed slightly lower on Friday after recovering from sharp intraday losses, supported by positive global cues, a firmer rupee, and easing market volatility. The Nifty rebounded from its day's low of 24,297 to settle at 24,366, while the Sensex slipped 70.71 points (0.09%) to 78,009.25 and the Nifty 50 declined 29.85 points (0.12%).

Consumer durables stocks attracted buying interest, while pharma, metal, and cement shares remained under pressure. Tata Motors Passenger Vehicles, State Bank of India, and Reliance Industries were among the key drags on the Nifty. Broader markets also ended weak, with mid-cap and small-cap indices falling 0.23% and 0.43%, respectively.

On the macroeconomic front, India's wholesale inflation eased marginally to 9.78% in July from 9.87% in June, aided by softer fuel price inflation. However, food, non-food articles, and manufacturing inflation remained elevated, highlighting persistent price pressures across sectors.

Global sentiment remained mixed. Asian markets advanced on hopes that easing U.S. inflation could reduce the likelihood of a near-term Federal Reserve rate hike, while European markets weakened amid renewed U.S.-Iran tensions and concerns over global demand. Wall Street, meanwhile, continued its record-setting run, led by gains in technology and AI-related stocks.

Among earnings-driven movers, Tata Motors PV fell over 4% after reporting a steep decline in quarterly profit. On the positive side, Zee Entertainment, LG Electronics India, Galaxy Surfactants, Honasa Consumer, KMC Speciality Hospitals, Praj Industries, and Jubilant FoodWorks gained following strong earnings updates and corporate developments.

Investor interest in the primary market remained robust, with Shiprocket and Behari Lal Engineering IPOs attracting subscriptions of around 99 times and 107 times, respectively.

Overall, markets remained range-bound with stock-specific action dominating trade, while investors continued to monitor earnings, inflation trends, crude oil prices, and global geopolitical developments for further direction.