Nifty trade below 23,850 in early trade; breadth positive
At 09:30 IST, the barometer index, the S&P BSE Sensex, declined 181.40 points or 0.26% to 76,312.74. The Nifty 50 index lost 61.55 points or 0.26% to 23,836.15.
In the broader market, the BSE 150 MidCap Index fell 0.25% and the BSE 250 SmallCap Index rose 0.06%.
The market breadth was positive. On the BSE, 1,775 shares rose and 1,627 shares fell. A total of 281 shares were unchanged.
FPIs sold shares worth Rs 8402.61 crore in September so far, through 4 September 2026. This follows net cash purchases of Rs 17,366 crore in August 2026, while they were net buyers of Rs 6,731.97 crore in July 2026.
Stocks in Spotlight:
Tata Motors shed 0.10%. The company announced that its subsidiary, TML CV Holdings B.V., has launched a tender offer to acquire Italian commercial vehicle manufacturer, Iveco Group at EUR 14.1 per common share in cash. The acceptance period for the offer will run from 7 September 2026 to 26 October 2026.
Mazagon Dock Shipbuilders fell 0.32%. The company received an order from Maharashtra State Electricity Transmission (MSETCL) for the supply, installation and commissioning of an AI-based Comprehensive Infrasecure Project for five substations. The order is valued at Rs 117.99 crore, including GST and other applicable duties.
Numbers to Track:
The yield on India's 10-year benchmark federal paper shed 0.03% to 6.959 compared with the previous session close of 6.965.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 94.4525 compared with its close of 94.4300 during the previous trading session.
MCX Gold futures for 5 October 2026 settlement fell 0.27% to Rs 1,52,301.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 99.19.
The United States 10-year bond yield rose 0.23% to 4.795.
In the commodities market, Brent crude for November 2026 settlement jumped 76 cents or 0.79% to $97.04 a barrel.
Global Markets:
Most Asian stocks advanced on Monday after a stronger-than-expected US jobs report boosted optimism over global growth. However, the data also increased expectations of a Federal Reserve rate hike in September. At the same time, rising oil prices and fresh US-Iran tensions kept investors cautious.
US cash equity markets will remain closed on Monday for the Labor Day holiday. Regular trading will resume on Tuesday. US stock futures were down 147 points in early Asian trade.
Wall Street ended lower on Friday after the stronger-than-expected jobs report revived concerns over the Fed's interest-rate outlook. The Dow Jones Industrial Average fell 0.51%, while the S&P 500 declined 0.38% and the Nasdaq Composite shed 0.29%.
The US Labor Department reported that nonfarm payrolls increased by 162,000 in August, well above economists' expectations for a 56,000 rise. The unemployment rate remained at 4.1%. The labour-force participation rate edged up to 61.6%. Payroll gains for June and July were also revised higher by a combined 55,000.
The strong employment data strengthened expectations of a Fed rate hike at its 15-16 September meeting.
Attention will now shift to US inflation data due later this week. The August consumer price index report, scheduled for Friday, could provide further clues on the Fed's policy path. A stronger inflation reading could reinforce expectations of a rate hike, while softer data could support the case for keeping rates unchanged.
Oil prices moved higher as tensions between the US and Iran escalated over the weekend. Brent crude rose to around $96.80 a barrel.
The latest escalation followed US strikes on three Iranian oil tankers. Iran's Islamic Revolutionary Guard Corps said it had targeted three tankers and several US-linked vessels in retaliation. Iran also indicated that it plans to establish a restricted zone outside the Strait of Hormuz. The claims regarding the Iranian attacks have not been independently verified.
The developments have raised concerns over possible disruptions to oil shipments through the Strait of Hormuz, a critical route for global energy supplies. The rise in crude prices is also adding to inflation concerns at a time when major central banks are reassessing their interest-rate paths.
Investors are also watching the European Central Bank, which is widely expected to raise its policy rate to 2.75% this week.
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