Indices trade sharply lower in early trade; breadth weak
All the sectoral indices on the NSE were traded in red with IT, realty and auto shares leading the fall.
At 09:25 IST, the barometer index, the S&P BSE Sensex declined 684.87 points or 0.89% to 76,259.41. The Nifty 50 index tanked 228.85 points or 0.95% to 23,826.20.
In the broader market, the BSE 150 MidCap Index tumbled 1.19% and the BSE 250 SmallCap Index dropped 0.81%.
The market breadth was weak. On the BSE, 1,097 shares rose and 2,139 shares fell. A total of 211 shares were unchanged.
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.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.37% to 6.983 compared with the previous session close of 6.957.
In the foreign exchange market, the rupee unchanged against the dollar. The partially convertible rupee was hovering at 94.9500 compared with its close of 94.9500 during the previous trading session.
MCX Gold futures for 5 October 2026 settlement declined 1.14% to Rs 1,50,005.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.10% to 99.78.
The United States 10-year bond yield rose 0.25% to 4.808.
In the commodities market, Brent crude for the November 2026 settlement jumped 77 cents or 0.81% to $95.42 a barrel.
Stocks in Spotlight:
Ashiana Housing shed 0.59%. The company announced that it recorded area bookings of 1.67 lakh square feet in August, with the value of the area sold aggregating to Rs 165.93 crore.
Sical Logistics hit upper circuit of 5% after has received a Letter of Acceptance from Central Coalfields for a five-year contract involving the hiring of heavy earth-moving machinery (HEMM) for overburden removal and coal extraction from a 143-hectare patch of the SDOC Mine in the Dhori area of Jharkhand. The contract has a total value of Rs 534.73 crore.
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.
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