Markets Set for Lower Open as Crude Spike, Windfall Tax Moves Weigh on Key Stocks

Market Outlook

Indian benchmark indices are poised to open lower on Wednesday, September 2, with GIFT Nifty futures suggesting the NIFTY50 index will start 40 points down, as reported by Upstox. Business Standard noted that GIFT Nifty futures were trading 0.06 per cent lower at 24,038.0 around 7:32 AM.

Asian markets mirrored the trend of US markets, which closed lower on Tuesday following fresh military escalation in West Asia and a spike in oil prices, according to Business Standard. Japan's Nikkei fell 2.85 per cent, South Korea's Kospi shed 3.15 per cent, and Australia's S&P/ASX200 was down 1.12 per cent. In the US, the Nasdaq ended 1.03 per cent lower, the S&P 500 fell 0.71 per cent, and the Dow Jones lost 0.79 per cent.

Oil prices surged, with Brent and WTI crude futures rising 1.65 per cent and 1.43 per cent to $96.21 and $91.51, respectively, as per Business Standard.

Oil Sensitivity and Windfall Tax Adjustments

The sharp rise in crude prices is likely to keep oil-sensitive sectors such as paints, tyres, aviation, and chemicals under pressure, as higher input and fuel costs could weigh on margins, Upstox reported. Upstream producers like ONGC and Oil India could benefit from higher crude realisations, while downstream oil marketing companies (OMCs) such as IOC, BPCL, and HPCL could face margin pressure if domestic fuel prices remain unchanged. Reliance Industries may see a mixed impact, with higher crude prices supporting its upstream business but elevated feedstock costs and refining margin volatility remaining key factors, according to Upstox.

In a related move, the government hiked the windfall gains tax on exports of petrol and diesel, and reduced it marginally on ATF for the next fortnight, as reported by Upstox. The special additional excise duty (SAED) along with road and infrastructure cess on diesel exports now stands at Rs 25 per litre, up from Rs 24 per litre. SAED on ATF exports has been set at Rs 19 per litre, compared to Rs 19.5 per litre earlier. The duty on petrol exports has been hiked to Rs 1.5 per litre effective September 1, up from zero. The Finance Ministry said in a notification that the duty hikes would be effective from September 1, according to Upstox.

Corporate Developments

Reliance Consumer Products (RCPL), the FMCG arm of Reliance Industries, has entered India's ice cream market with the launch of Bombay Creamery, as reported by both Business Standard and Upstox.

Coal India offered 210.66 lakh tonnes of coal through e-auctions in August, of which 82.76 lakh tonnes were sold, translating to around 39 per cent of the total quantity offered, according to Business Standard. The average price realised through these e-auctions was 59 per cent higher than the notified price.

NMDC reported a sharp rise in August production to 40.7 lakh tonnes from 33.7 lakh tonnes a year ago, as per Business Standard. However, the report also noted that sales saw a decline.

Tata Motors has been granted approvals required for its acquisition of Italian commercial vehicle maker Iveco Group, Business Standard reported.

TheReserve Bank of India has approved the appointment of Carol Furtado as the interim CEO of a bank, effective September 1, 2026, according to Business Standard. The report did not specify which bank.

Gland Pharma's API facility in Visakhapatnam has completed an inspection by the US FDA, Business Standard stated.

A subsidiary ofAdani Green Energy has commissioned a 139 MW solar power project at Khavda in Gujarat, as reported by both Business Standard and Upstox.

L&T Finance has received perpetual registration from the Insurance Regulatory Development Authority of India (IRDAI) to operate as a corporate agent, according to Business Standard.

ITC Infotech has received NCLT approval for the merger of Blazeclan Technologies and Cloudlytics Technologies, Business Standard reported.

Wipro has expanded its global digital workplace services engagement with ABB, as per both Business Standard and Upstox. A press release quoted by Upstox stated: "Building on an established relationship spanning multiple years, Wipro will continue delivering end-to-end AI-enabled Digital Workplace Services for ABB's global operations while further enhancing employee experience through advanced automation, AI-powered service capabilities, and workplace modernisation initiatives."

Hero MotoCorp reported a 4.5 per cent year-on-year increase in domestic sales to 5.42 lakh units in August, with total sales including exports rising 2.6 per cent Y-o-Y to 5.68 lakh units, as per Business Standard. Stronger scooter sales partly offset weakness in motorcycle volumes.

Other Notable Movements

Blackstone, through its affiliate Epsilon Bidco Pte Ltd, offloaded a total of 8,44,79,781 shares in EPL Ltd, according to Upstox.

Ujjivan Small Finance Bank has appointed Nautiyal as MD and CEO for three years with effect from July 1, 2024, as per Upstox. Nautiyal has expressed his desire to seek early retirement with a three-month notice period.

Sakar Healthcare obtained approvals for five additional oncology products from the European Medicines Agency (EMA), Upstox reported.

Gateway Hotels & Resorts signed a brownfield project in Agartala, according to Upstox.