Nifty slips below 23,800 as crude shock and fed fears hit sentiment

The key equity indices ended with modest losses on Monday, driven by escalating US-Iran tensions and firm crude oil prices. Strong US jobs data also revived expectations of a September Federal Reserve rate hike, while rising US bond yields added pressure on emerging-market equities. Persistent foreign institutional investor selling further weakened sentiment. The market is also facing liquidity pressure from a strong IPO pipeline, with several large issues expected to absorb funds from the secondary market. The Nifty closed below the 23,800 level, dragged by IT and metal shares. However, pharma and consumer durables shares were in demand.

The S&P BSE Sensex declined 382.62 points or 0.50% to 76,132.81. The Nifty 50 index lost 118.55 points or 0.50% to 23,779.15.

Infosys (down 3.76%), State Bank of India (down 1%) and Reliance Industries (down 0.95%) were major drags today.

In the broader market, the BSE 150 MidCap Index declined 0.59% and the BSE 250 SmallCap Index rose 0.24%.

The market breadth was negative. On the BSE, 2,010 shares rose and 2,474 shares fell. A total of 261 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 4.11% to 11.12.

Numbers to Track:

In the commodities market, Brent crude for the November 2026 settlement advanced 48 cents or 0.50% to $96.76 a barrel.

The yield on India's 10-year benchmark federal paper shed 0.14% to 6.951 compared with the previous session close of 6.965.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 94.5000 compared with its close of 94.4300 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement fell 0.13% to Rs 1,52,572.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.23% to 98.95.

The United States 10-year bond yield rose 0.06% to 4.787.

Global Market:

The US Dow Jones index futures are currently down by 272 points. However, the US cash equity market will remain closed on Monday for the Labor Day holiday, with regular trading scheduled to resume on Tuesday.

Most European indices declined on Monday as investors awaited the European Central Bank?s monetary policy meeting scheduled for later this week, with the central bank widely expected to raise its policy rate to 2.75%.

Asian stocks ended mixed 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.

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 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.

New Listing:

Shares of Purple Style ended at Rs 568.05 on the BSE, representing a discount of 1.21% as compared with the issue price of Rs 575.

The stock debuted at Rs 539 on the BSE, a discount of 6.26% over its issue price. The stock hit a high of Rs 588.10 and a low of Rs 516. On the BSE, over 7.31 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

VA Tech Wabag rose 0.33%. The company said that it has secured a 'medium? order from Reliance Industries (RIL) for an effluent treatment plant at the Dhirubhai Ambani Green Energy Giga Complex (DAGEGC), Jamnagar. As per the company's internal classification, the value of this contract lies between Rs 100 crore and Rs 250 crore.

Avalon Technologies rose 6.76% after a foreign brokerage maintained its 'Buy' rating and raised the target price to Rs 2,767 per share. The brokerage said the Zollner JV will strengthen Avalon?s advanced EMS presence in Europe, improve long-term growth visibility and add global customers. The JV will also help the company enter healthcare, lifesciences and test & measurement, offering high-complexity manufacturing opportunities and long product cycles.

Jindal Stainless slipped 0.39%. The company said that it has entered into a technical assistance agreement with JFE Steel Corporation, Japan, to strengthen its manufacturing capabilities for selected ferritic stainless steel grades.

Sudarshan Pharma Industries was locked in the 5% upper circuit. The company said that its board has approved a proposal to acquire 24,23,675.64 equity shares of common stock, equivalent to a 9.50% stake of MedTherapy Biotechnology Inc., a Boston-based global cancer cell & gene therapy company.

PVR Inox dropped 6.13% after media reports alleged irregularities involving the company. The reports said the company asked former growth and investment CEO Pramod Arora and a few others to leave in April following an internal probe into alleged kickbacks of up to Rs 200 crore from cinema property developers. The probe reportedly examined the extent of the alleged wrongdoing and whether others were involved. The reports also alleged that Arora was close to the company's promoters, raising questions over the duration of the alleged payments and whether others were aware of the irregularities.

Axiscades Technologies gained 3.82% after the company announced that its board approved raising up to Rs 200 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis.

Texmaco Rail & Engineering rose 3.03% after the company announced orders worth a combined Rs 131.36 crore. The company received two domestic orders. Transport Corporation of India awarded an Rs 24.48 crore order for the manufacture, supply and commissioning of one rake of Type ACT-1 wagons along with one BVCM wagon. The order is to be executed within 16 weeks from the date of the letter of intent.

Indoco Remedies declined 4.28% after the U.S. Food and Drug Administration (USFDA) had inspected the company?s manufacturing facility at Plant II (Sterile) located at Goa.

Urban Enviro Waste Management jumped 8.42% after the company received an order worth Rs 219 crore from Akola Municipal Corporation for the door-to-door collection and transportation of municipal solid waste up to the designated processing/disposal site at Bhod for a period of five years, extendable by up to two years.

Brightcom Group surged 7.46% on Monday after the company announced its re-inclusion in the FTSE Global Equity Index Series (FTSE GEIS) Micro Cap Index.

Initial Public Offer (IPO):

Pranav Constructions received bids for 11,99,57,040 shares as against 2,24,63,137 shares on offer, according to stock exchange data at 16:30 IST on 7 September 2026. The issue was subscribed 5.34 times.

The issue opened for bidding on 7 September 2026 and will close on 9 September 2026. The price band of the IPO is fixed between Rs 118 and 124 per share. An investor can bid for a minimum of 120 equity shares and multiples thereof.

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