Markets Open Flat Amid Geopolitical Tensions
Indian equity markets began the trading day on a cautious note on September 1, with both the Nifty 50 and the Sensex opening flat and trading marginally lower in early trade. The Nifty opened at 24,077.55, while the Sensex opened at 76,994.11. As of the latest trading, the Nifty was down 0.17 per cent at 24,038.35, and the Sensex was down 0.10 per cent at 76,876.53.
The muted start came as crude oil prices remained firm, trading above $91 per barrel, following a fresh escalation between the US and Iran. Reports indicated that US strikes on Iran were followed by Iranian missile attacks on American bases in Jordan. US President Donald Trump was quoted as saying, "we're going to hit them hard," in response to the attacks.
Oil Prices, Bond Yields Weigh on Sentiment
Brent crude crossed $91 per barrel in Asian trade, with competing claims over whether vessels had struck mines near the Strait of Hormuz keeping energy markets on edge. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that crude "continues to spiral higher," adding that the market is focused on a tight product market and fresh strikes on Russian refineries have pushed refining margins to new highs. He also pointed out that the US Strategic Petroleum Reserve was at its lowest since 1983.
The US 10-year Treasury yield climbed to 4.78 per cent, near a 20-month high, after Federal Reserve Chair Warsh's hawkish Jackson Hole speech pushed the probability of a September rate hike to nearly two-thirds. Vinod Nair, Head of Research at Geojit Investments Limited, said, "Escalating tensions between the US and Iran have kept investors on edge, as fading prospects of a diplomatic breakthrough pushed crude oil prices and global bond yields higher."
Sectoral Movers: ITC, Bharti Airtel Lead; Max Healthcare Drags
On the Nifty 50, ITC was the top gainer, rising 4.38 per cent to ₹266.70, followed by Bharti Airtel, up 2.75 per cent to ₹1,861.70. Adani Ports gained 2.73 per cent to ₹1,636.60, while Adani Enterprises rose 2.12 per cent to ₹2,919.80. TMPV added 2.19 per cent to close at ₹315.60.
On the losing side, Max Healthcare fell the most, dropping 3.48 per cent to ₹1,005.80. Nestle India declined 3.11 per cent to ₹1,449.90. IndiGo slipped 2.95 per cent to ₹5,079.50, TCS fell 2.72 per cent to ₹2,334.00, and Shriram Finance dropped 2.69 per cent to ₹1,080.00. Weakness in the IT and FMCG sectors reflected the broader global risk-off mood, with Media, Metals, Chemicals, and Cement also among the laggards.
Bank Nifty Shows Resilience, Analysts See Short-Term Weakness
Bank Nifty showed relative resilience, closing Monday at 58,024.95, up 528.65 points. Sachin Gupta, VP of Technical Research at Choice Equity Broking, noted that the 57,200 support zone held and that the 58,700–58,800 band remained key resistance for Bank Nifty.
G. Chokkalingam, Head of Research at Equinomics Research, told Times Now Digital, "domestic equity market is likely to be weak today as a majority of global markets saw some marginal falls. Oil prices also remain firm. IMD has predicted below-normal rainfall over country in September, which is final month of monsoon period. This doesn't augur well as June to August period ended with cumulative rainfall deficit of 14%. Hence market is likely to remain weak in the short term. However, stock specific rally in the small and mid cap segment may continue."
Previous Session Recap
In the previous session, benchmark indices closed lower on Monday as fading hopes of a diplomatic breakthrough between the US and Iran kept investors cautious. The Nifty 50 closed at 24,080.40, down 95.25 points or 0.39 per cent, while the BSE Sensex ended at 76,957.27, declining 307.24 points or 0.40 per cent.
Data showed that foreign institutional investors sold nearly ₹7,985 crore worth of equities on Monday, while domestic institutional investors bought ₹4,588 crore. India's economy expanded 7.8 per cent in the April–June quarter of FY27, beating the RBI's 7 per cent projection, which offered some support but was outweighed by global headwinds.