Sensex, Nifty extend losses as Middle East tensions lift oil, yields
Key equity indices came under broad-based selling pressure on Wednesday as escalating US-Iran tensions drove crude oil prices higher and heightened concerns over inflation, interest rates and economic growth. The Nifty ended below the 23,950 mark, led by auto and IT shares, while oil & gas stocks gained. The broader market also weakened, with midcap and smallcap indices falling over 0.5% each. Brent crude crossed $95 a barrel, while higher global bond yields added to pressure on equities. India's sensitivity to imported crude amplified concerns over inflation and the economic impact of a prolonged disruption in the Middle East.
The S&P BSE Sensex declined 373.90 points or 0.49% to 76,570.35. The Nifty 50 index lost 141.35 points or 0.59% to 23,914.45. In the three consecutive sessions, the Sensex declined 0.90%, while the Nifty fell 1.08%.
Mahindra & Mahindra (down 2.12%), HDFC Bank (down 1.56%) and ICICI Bank (down 0.80%) were major Nifty drags today.
In the broader market, the BSE 150 MidCap Index dropped 0.55% and the BSE 250 SmallCap Index fell 0.51%.
The market breadth was negative. On the BSE, 1,914 shares rose and 2,428 shares fell. A total of 242 shares were unchanged.
Numbers to Track:
In the commodities market, Brent crude for the October 2026 settlement jumped 22 cents or 0.23% to $94.87 a barrel.
The yield on India's 10-year benchmark federal paper rose 0.26% to 6.975 compared with the previous session close of 6.957.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.9700 compared with its close of 95.9500 during the previous trading session.
MCX Gold futures for the 5 October 2026 settlement shed 0.89% to Rs 1,50,378.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.18% to 99.85.
The United States 10-year bond yield rose 0.38% to 4.812.
Global Markets:
European stocks declined while Asian shares fell sharply on Wednesday as a global bond selloff intensified, pushing borrowing costs higher and weighing on equity valuations. Renewed US-Iran hostilities drove Brent crude above $95 a barrel, raising concerns over energy-driven inflation and the outlook for global growth. The US 10-year Treasury yield climbed to 4.81%, its highest level since November 2023, while Japan's 10-year yield rose above 3%. European shares also came under pressure, with the STOXX 600 falling to a one-month low as higher oil prices and bond yields heightened concerns over monetary policy.
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.
Higher energy prices have intensified inflation concerns and contributed to a global bond selloff.
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.
New Listings:
Shares of Annu Projects settled at Rs 77.90 on the BSE, representing a discount of 21.31% as compared with the issue price of Rs 99.
The stock debuted at Rs 75 on the BSE, a discount of 24.24% over its issue price. The stock has hit a high of Rs 78.74 and a low of Rs 71.25. On the BSE, over 10.39 lakh shares of the company were traded in the counter.
Stocks in Spotlight:
Hero MotoCorp dropped 4.59% after its August sales showed a 1.53% drop in motorcycle volumes and a 24.56% decline in exports, despite a 2.65% rise in total sales.
Eicher Motors fell 3.24% despite an 11% increase in Royal Enfield motorcycle sales to 1,26,479 units.
The selling pressure across automobile stocks reflected broader caution in the market as rising global crude oil prices raised concerns over higher fuel and freight costs across the automotive supply chain. Higher oil prices can also fuel inflation and weigh on consumer spending, potentially affecting vehicle demand.
Coal India rose 4.05% after the company reported a 5.50% increase in total coal supplies to 60.60 million tonnes (MT) in August FY27 from 57.40 MT in August FY26.
Adani Ports and Special Economic Zone (APSEZ) added 1.53% after the company said that the company had handled its highest ever monthly cargo volume of 50MMT in a single month during August 2026. The cargo volume is higher by 19% as compared with the figure of 41.9 MMT recorded in August 2025.
Nephrocare Health Services rose 0.35%. Nephroplus Health Services Kazakhstan LLP, the company's step-down subsidiary, has entered into a sale & purchase agreement with Aizhan Slambekovna Zhambulova for acquisition of 100% stake in Dialysis Center Almaty LLP for Rs 11.63 crore. Dialysis Center Almaty is engaged in the business of providing dialysis services through its dialysis centres in Kazakhstan.
EMS jumped 2.95% after the company received the lowest bidder (L-1) status from the Directorate of Local Bodies, Government of Rajasthan, for a sewerage project. The estimated order value is approximately Rs 218.65 crore.
BEML added 3.42% after the company has secured an additional order worth Rs 180.60 crore from Integral Coach Factory for manufacturing & supply of Vande Bharat (Sleeper) trainsets.
IPO Update:
Purple Style labs received bids for 88,40,338 shares as against 68,49,816 shares on offer, according to stock exchange data at 16:42 IST on 2 September 2026. The issue was subscribed 1.29 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.
Deepa Jewellers received bids for 6,39,05,772 shares as against 1,85,20,085 shares on offer, according to stock exchange data at 16:42 IST on 2 September 2026. The issue was subscribed 3.45 times.
The issue opened for bidding on 1 September 2026 and will close on 3 September 2026. The price band of the IPO is fixed between Rs 168 and 177 per share. An investor can bid for a minimum of 84 equity shares and multiples thereof.
Rays of Belief received bids for 1,09,76,480 shares as against 31,37,810 shares on offer, according to stock exchange data at 16:42 IST on 2 September 2026. The issue was subscribed 3.50 times.
The issue opened for bidding on 1 September 2026 and will close on 3 September 2026. The price band of the IPO is fixed between Rs 227 and 239 per share. An investor can bid for a minimum of 62 equity shares and multiples thereof.
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