GIFT Nifty signals weak start amid oil surge and global selloff
GIFT Nifty:
GIFT Nifty September 2026 futures were down 21.50 points, indicating a negative opening for the Nifty 50. Global markets remained weak amid caution over elevated crude oil prices and surging bond yields, which have heightened inflation concerns amid the escalating US-Iran conflict in the Middle East.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 1,143.38 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,846.94 crore in the Indian equity market on 1 September 2026, according to provisional data.
FPIs bought shares worth Rs 17366 crore in August 2026. This follows net cash purchases of Rs 6,731.97 crore in July 2026, while they were net sellers of Rs 53,957.90 crore in June 2026.
Global Markets:
Asian market traded sharply lower on Wednesday, tracking overnight losses on Wall Street as renewed US-Iran hostilities pushed crude oil prices higher and heightened concerns over inflation, interest rates and global growth.
Wall Street extended its decline on Tuesday, with the Dow Jones Industrial Average falling 418.97 points, or 0.79%, to 52,766.93. The S&P 500 declined 54.67 points, or 0.71%, to 7,631.47, while the Nasdaq Composite dropped 271.11 points, or 1.03%, to 26,099.77.
The selloff followed a sharp rise in oil prices after renewed military action between the US and Iran raised concerns over supply disruptions through the Strait of Hormuz. Brent crude rose to around $95 a barrel on Wednesday, its highest level in five weeks, after gaining for a second consecutive session.
Higher energy prices have intensified inflation concerns and contributed to a global bond selloff. The US 10-year Treasury yield climbed to around 4.80%, while Japan's 10-year government bond yield approached 3%, adding to pressure on equity valuations.
Markets are also reassessing the Federal Reserve's interest-rate outlook. The probability of a 25-basis-point rate hike at the Fed's 16 September meeting has risen to about 67%, compared with 39.6% a week earlier, following hawkish comments from Fed officials.
US economic data released overnight presented a mixed picture. The ISM Manufacturing PMI eased to 54.6 in August from 55.6 in July, indicating that manufacturing activity continued to expand, but at a slower pace. The New Orders Index declined to 53.7 from 56.7, while the Employment Index fell to 51.2 from 52.8. The Prices Index remained elevated at 71.1, pointing to continued input-cost pressures.
The US labour market remained relatively resilient, with JOLTS job openings rising by 89,000 to 7.271 million in July. However, hiring fell by 278,000 to 5.054 million, while the hires rate declined to 3.2%, suggesting some moderation in labour-market momentum despite continued demand for workers.
US construction spending also weakened, falling 0.5% in July to a seasonally adjusted annual rate of $2.158 trillion. The decline added to signs of softer activity in parts of the US economy.
Investors will now track upcoming US labour-market data, including the nonfarm payrolls report due Friday, for further clues on the Federal Reserve's policy path. The combination of elevated oil prices, persistent price pressures and signs of softer economic activity is likely to keep markets volatile.
Domestic Market:
The key equity indices ended marginally lower on Tuesday, extending their decline for the second consecutive session. Renewed Middle East tensions pushed crude oil and global bond yields higher, keeping investors cautious. The Nifty ended below the 24,100 mark as banking, financial services, auto and pharma stocks came under pressure. However, gains in IT and FMCG stocks helped limit the broader market's losses.
Crude oil remained the key macro concern after renewed US-Iran hostilities raised fears of prolonged supply disruptions through the Strait of Hormuz. The rise in global bond yields added to pressure on equities. The S&P BSE Sensex declined 12.99 points or 0.02% to 76,944.28. The Nifty 50 index lost 24.60 points or 0.01% to 24,055.80.
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