Sensex, Nifty decline for fourth day as IT, auto stocks drag

The key equity benchmarks ended lower for the fourth consecutive session on Thursday, 3 September 2026, as gains in banking and realty stocks were offset by selling in IT, auto and other sectors.

The Nifty 50 opened at 23,997.95 and briefly climbed to an intraday high of 24,025.40 before gradually paring gains. The index slipped below 23,950 around noon and remained volatile through the afternoon, hovering near the 23,900 mark. Selling intensified in the final hour, pushing the index to a low of 23,873.45, where it closed, down 41 points or 0.17%.

Market sentiment remained cautious amid elevated crude oil prices and continued geopolitical tensions in the Middle East. Brent crude climbed to around $96 a barrel as concerns over disruptions to energy supplies persisted, raising worries over inflation, bond yields and India's external balances.

Banking stocks bucked the broader trend after Indian banks mobilised more than $60 billion in the final 10 days of the RBI's special forex swap scheme. Foreign investor sentiment also improved in August, with FPIs investing $3.1 billion in Indian equities, the highest monthly inflow in nearly two years.

The broader market showed relative resilience, with mid- and small-cap stocks gaining. Investors continued to track crude oil prices, global bond yields and developments in the US-Iran conflict for further market direction.

The S&P BSE Sensex declined 417.49 points or 0.55% to 76,152.86. The Nifty 50 index lost 41 points or 0.17% to 23,873.45. In four consecutive sessions, the Sensex and the Nifty declined 1.44% and 1.25%, respectively.

Mahindra & Mahindra (down 1.25%), Infosys (down 0.85%) and Reliance Industries (down 0.81%) were major Nifty drags today.

In the broader market, the BSE 150 MidCap Index added 0.15% and the BSE 250 SmallCap Index rose 1.01%.

The market breadth was positive. On the BSE, 2,545 shares rose and 1,778 shares fell. A total of 228 shares were unchanged.

Economy:

The Reserve Bank of India (RBI) on Wednesday said forex inflows under its special USD-INR forex swap facility stood at $136.38 billion as of 31 August 2026, according to provisional data reported by authorised dealer banks.

The inflows included $127.23 billion through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, while overseas foreign currency borrowings (OFCBs) contributed $5.26 billion and external commercial borrowings (ECBs) accounted for $3.89 billion.

Separately, India's HSBC Composite PMI stood at 54.3 in August 2026, down from the flash estimate of 54.6 but unchanged from July, indicating continued private-sector growth. However, the pace remained the joint-slowest in four-and-a-half years.

The HSBC Services PMI was revised to 54.1 from the flash estimate of 54.5, up from 53.3 in July, as higher demand and new business supported growth.

Numbers to Track:

In the commodities market, Brent crude for the November 2026 settlement jumped $1.21 or 1.27% to $96.84 a barrel.

The yield on India's 10-year benchmark federal paper fell 0.11% to 6.964 compared with the previous session close of 6.972.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 94.5900 compared with its close of 94.7300 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement advanced 0.74% to Rs 1,53,533.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.32% to 99.24.

The United States 10-year bond yield fell 0.19% to 4.785.

Global Markets:

Most shares in Europe and Asia advanced as investors turned their attention to key services activity and labour-market data for further cues on the health of the domestic economy and the outlook for monetary policy.

Eurozone producer prices rose 1.6% MoM in July 2026, the highest increase since March and above market expectations of 1.2%, following a 0.3% decline in June. The rise was driven by a 5.6% jump in energy prices. On a YoY basis, producer inflation accelerated to 5.8% from 4.6% in June.

Wall Street recovered on Wednesday, with the Dow Jones Industrial Average rising 295.01 points, or 0.56%, to 53,061.89. The S&P 500 gained 35.16 points, or 0.46%, to 7,666.63, while the Nasdaq Composite advanced 118.05 points, or 0.45%, to 26,217.83. The rebound was supported by buying in technology stocks and other recent laggards.

US labour-market data remained a key focus. Private-sector employment increased by 38,000 in August, according to the ADP National Employment Report. The figure was below market expectations of 48,000 and down from a revised 46,000 increase in July. Manufacturing employment fell by 17,000, while education and health services added 45,000 jobs.

Investors are now awaiting Friday's US nonfarm payrolls report, which could influence expectations for the Federal Reserve's September policy decision.

New Listing:

Shares of Lumino Industries ended at Rs 110.39 on the BSE, representing a premium of 34.62% as compared with the issue price of Rs 82.

The stock debuted at Rs 109 on the BSE, a premium of 32.93% over its issue price. The stock has hit a high of Rs 119 and a low of Rs 106.48. On the BSE, over 1.59 crore shares of the company were traded in the counter.

Stocks in Spotlight:

RBL Bank jumped 4.80% after the bank announced that its board will meet on Monday, 7 September 2026, to consider establishing a Euro Medium Term Note (EMTN) Programme. Under the proposed programme, the bank may issue foreign currency bonds, notes or other debt securities from time to time through one or more tranches, subject to market conditions and applicable regulatory requirements. The proposed fundraising will be undertaken through permissible modes under the EMTN Programme and in accordance with applicable laws.

Titan Biotech jumped 4.91% after the company's board approved a 1:4 bonus issue, subject to shareholders' approval.

Welspun Corp rose 4.26% to Rs 2,631.10 after a foreign brokerage initiated coverage on the company with a 'Buy' rating and a target price of Rs 3,250.

XTGlobal Infotech rose 5.11% after being selected as a qualified technology partner under a multi-year cloud engineering and technical services programme for a US state government technology authority. The programme has an initial two-year term with three one-year renewal options, creating a potential five-year framework. The company estimates the aggregate addressable opportunity across the qualified vendor pool at $50 million-$100 million over the potential five-year period.

Balu Forge Industries fell 1.42%. The company has announced the successful acquisition of a ring rolling production line capable of producing forged rings up to 6.7 meters in outer diameter (OD). This acquisition adds 18,000 tons of specialized heavy ring rolling capacity with a high-value-addition product line. The ring rolling production line will commence the production trial before the end of 2026.

Housing & Urban Development Corporation added 1.49% after the company announced that it has signed a memorandum of understanding (MoU) with the Government of Bihar for providing financial assistance for proposed industrial parks. As per the MoU, HUDCO would provide financial assistance to the extent of Rs 25,000 crore over a period of five years for development of industrial infrastructure including acquisition of land for the projects.

Inox Wind rallied 4.83% after the company secured a repeat turnkey order from Indian Oil Corporation for a 100 MW wind power project, with a contract value of approximately Rs 755 crore.

Autoline Industries zoomed 10.42% after the company announced that it has secured a new business award from Tata Motors Passenger Vehicles for the supply of critical components for SUV applications. The business is expected to generate annual incremental revenue of approximately Rs 100 crore.

IPO Update:

Rays of Belief received bids for 33,77,36,692 shares as against 31,37,810 shares on offer, according to stock exchange data at 17:00 IST on 3 September 2026. The issue was subscribed 107.63 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.

Deepa Jewellers received bids for 78,85,39,164 shares as against 1,85,20,085 shares on offer, according to stock exchange data at 17:00 IST on 3 September 2026. The issue was subscribed 42.58 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.

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