Benchmarks end lower as US-Iran tensions, crude prices weigh

Key equity benchmarks ended lower on Monday, with the Nifty slipping below 24,100 as renewed US-Iran tensions, higher crude oil prices and weak global cues weighed on sentiment. The selloff was broad-based, although private bank and healthcare stocks provided some support. Media and metal stocks were among the biggest losers. Zee Entertainment plunged over 7% after reports that lenders plan to challenge the NCLT-approved repayment plan involving Essel Group founder Subhash Chandra.

Crude oil remained a key macro risk as renewed US-Iran military tensions raised concerns over potential disruption to supplies through the Strait of Hormuz. Higher oil prices could increase India's import bill and inflationary pressures, while also complicating the interest-rate outlook.

HDFC Bank was another major stock in focus. The lender fell 1.5% after its MD and CEO Sashidhar Jagdishan decided not to seek reappointment and will retire on 26 October 2026. The board has begun the process of appointing his successor.

The session also marked the implementation of MSCI's latest index changes under the new closing-auction mechanism, resulting in significant stock-specific flows. Reliance Industries fell 0.8% after its MSCI weighting was reduced, while several stocks saw sharp moves as passive funds adjusted their positions.

The S&P BSE Sensex declined 307.24 points or 0.40% to 76,957.27. The Nifty 50 index fell 95.25 points or 0.39% to 24,080.40.

In the broader market, the BSE 150 MidCap Index fell 0.23% and the BSE 250 SmallCap Index dropped 0.74%.

The market breadth was negative. On the BSE, 1,858 shares rose and 2,572 shares fell. A total of 261 shares were unchanged.

Economy:

India's real GDP grew 7.8% year-on-year in Q1 FY27 (April-June 2026), beating the Reserve Bank of India's 7% projection. Real Gross Value Added (GVA) grew 8.2%, with manufacturing and financial services among the key drivers. GDP growth moderated from the revised 8.6% recorded in Q4 FY26. The stronger-than-expected growth points to resilient domestic economic activity, although investors will continue to track crude oil prices, inflation and geopolitical risks.

Numbers to Track:

In the commodities market, Brent crude for the October 2026 settlement rose $3.19 or 3.62% to $91.29 a barrel.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 95.2100 compared with its close of 95.4375 during the previous trading session.

The yield on India's 10-year benchmark federal paper rose 0.55% to 6.951 compared with the previous session close of 6.913.

MCX Gold futures for the 5 October 2026 settlement shed 0.62% to Rs 155,318.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 99.53.

The United States 10-year bond yield shed 0.04% to 4.720.

Global Markets:

Most shares in Europe and Asia declined on Monday as a sharp military escalation in the Middle East drove crude prices above $90 a barrel, while aggressive re-pricing of U.S. interest rate hike expectations ushered in a high-stakes week of macroeconomic data.

Investors also assessed a more hawkish policy outlook from Federal Reserve Chair Kevin Warsh. Warsh said the Fed would have ?work to do? if it was not confident that underlying inflation was returning to its 2% target, prompting markets to raise the probability of a September rate hike to around 57%.

Meanwhile, China's manufacturing activity remained in contraction for a second consecutive month in August, although the pace of decline eased. The official manufacturing purchasing managers' index rose to 49.8 from 49.2 in July, remaining below the 50 mark that separates expansion from contraction. The reading was also better than economists' expectations.

US equities ended lower on Friday after Warsh's Jackson Hole speech revived concerns over tighter monetary policy. The S&P 500 fell 0.25% to 7,711.76, the Dow Jones Industrial Average slipped 0.02% to 53,559.99 and the Nasdaq Composite declined 0.52% to 26,402.42.

The combination of higher rate expectations, elevated bond yields and renewed geopolitical tensions has increased pressure on global risk assets. Markets will now turn to upcoming US employment and inflation data for further clues on the Federal Reserve's policy path.

New Listing:

Shares of Augmont Enterprises ended at Rs 907.75 on the BSE, representing a premium of 15.20% as compared with the issue price of Rs 788.

The stock debuted at Rs 956 on the BSE, a premium of 21.32% over its issue price. The stock has hit a high of Rs 1,019 and a low of Rs 900. On the BSE, over 16.01 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Zee Entertainment Enterprises dropped 7.65%, extending its decline to fourth sessions, after reports said Canara Bank, Union Bank of India and LIC Housing Finance plan to challenge the NCLT's 25 August 2026 approval of Essel Group founder Subhash Chandra's repayment plan before the NCLAT. Under the plan, Rs 6.25 crore would be paid to creditors against admitted claims of about Rs 22,006.57 crore, while Rs 25 lakh has been earmarked for insolvency-process costs. HDFC Bank, which also opposed the plan, is considering a challenge, according to reports.

HDFC Bank fell 1.57% after managing director and CEO Sashidhar Jagdishan decided not to seek reappointment and will retire on 26 October 2026. The bank's board has begun the process of finding his successor. Jagdishan, 61, joined HDFC Bank nearly three decades ago and became MD and CEO in October 2020, succeeding Aditya Puri. He was reappointed for a three-year term in 2023.

Reliance Industries fell 0.78%. The company?s subsidiary, Jio Platforms, has received an observation letter from the Securities and Exchange Board of India (SEBI) for its Draft Red Herring Prospectus (DRHP) for the proposed initial public offering (IPO).

Jio Platforms received the observation letter from SEBI on 28th August 2026. The development marks a key regulatory milestone for the telecom and digital services company as it moves ahead with its proposed public issue. Jio Platforms had filed its DRHP with SEBI on 19 June 2026, proposing a fresh issue of up to 27 crore equity shares with a face value of Rs 10 each.

Religare Enterprises jumped 4.70% after investor Ashish Dhawan acquired an additional 38 lakh shares in the company through open-market purchases on 28 August 2026. Following the acquisition, Dhawan's holding increased to 2,16,80,852 shares, or 6.35%, from 5.24% earlier. Dhawan also holds 36,19,148 warrants. Including these warrants, his total holding stands at 2.53 crore securities, equivalent to 6.38% of the company's diluted share capital.

Karbonsteel Engineering surged 6.94% after the company received multiple purchase orders aggregating Rs 67.14 crore from India?s largest diversified conglomerate. The orders involve the supply of prefabricated steel structures and are scheduled to be completed by 3 March 2027.

Avantel advanced 2.37% after the company announced that it had secured a contract worth Rs 117.88 crore from the Defence Research and Development Organisation (DRDO), under the Ministry of Defence, Government of India. The contract involves the development, installation and commissioning of a ground segment hub for voice and data communication. The project carries a warranty period of 36 months.

Indraprastha Gas rose 2.23% after the company has increased the price of compressed natural gas (CNG) by Rs 3.89 per kg. Following the revision, CNG in Delhi will cost Rs 86.98 per kg. The revised price is Rs 92.10 per kg in Gurugram and Rs 95.59 per kg in Ghaziabad and Noida.

Sterlite Technologies advanced 0.86%.Tthe company announced that it had signed a long-term contract worth approximately $288 million with a leading hyperscaler. The agreement involves the allocation of high-density optical fibre cable products to be supplied according to customer specifications during each calendar year from 2027 to 2029. Purchase orders will be released periodically over the contract period.

Initial Public Offer (IPO):

Purple Style Labs received bids for 7,82,184 shares as against 68,49,816 shares on offer, according to stock exchange data at 16:48 IST on 31 August 2026. The issue was subscribed 0.11 times.

The issue opened for bidding on 31 August 2026 and will close on 2 September 2026. The price band of the IPO is fixed between Rs 546 and 575 per share. An investor can bid for a minimum of 26 equity shares and multiples thereof.

Lumino Industries received bids for 7,28,95,00,764 shares as against 6,32,05,127 shares on offer, according to stock exchange data at 16:48 IST on 31 August 2026. The issue was subscribed 115.33 times.

The issue opened for bidding on 27 August 2026 and will close on 31 August 2026. The price band of the IPO is fixed between Rs 78 and 82 per share. An investor can bid for a minimum of 182 equity shares and multiples thereof.

Priority Jewels received bids for 9,03,61,350 shares as against 32,02,500 shares on offer, according to stock exchange data at 16:48 IST on 31 August 2026. The issue was subscribed 28.22 times.

The issue opened for bidding on 28 August 2026 and will close on 1 September 2026. The price band of the IPO is fixed between Rs 190 and 200per share. An investor can bid for a minimum of 75 equity shares and multiples thereof.

EDS Software Solution received bids for 29,35,11,562 shares as against 1,23,52,942 shares on offer, according to stock exchange data at 16:48 IST on 31 August 2026. The issue was subscribed 23.76 times.

The issue opened for bidding on 28 August 2026 and will close on 1 September 2026. The price band of the IPO is fixed between Rs 408 and 429 per share. An investor can bid for a minimum of 34equity shares and multiples thereof.

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