Benchmarks extend losses as rising crude prices stoke inflation concerns

The key equity indices ended lower on Tuesday, extending their decline for the second consecutive trading session. Sentiment remained subdued amid rising crude oil prices on concerns over an escalating conflict in the Middle East. India is particularly vulnerable to higher fuel prices as it imports about 85% of its crude oil requirements. Firm global bond yields further weighed on investor sentiment and heightened concerns over inflation and interest rates. The Nifty closed below the 23,650 level, dragged by weakness in private banks, oil & gas and IT shares.

The S&P BSE Sensex declined 555.23 points or 0.73% to 75,577.58. The Nifty 50 index lost 144.05 points or 0.61% to 23,635.10. In two consecutive sessions, the Sensex and Nifty have declined 1.23% and 1.10%, respectively.

ICICI Bank (down 1.97%), Reliance Industries (down 1.11%) and HDFC Bank (down 1.06%) were major Nifty drags today.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index added 0.27% and the BSE 250 SmallCap Index rose 0.17%.

The market breadth was negative. On the BSE, 2,096 shares rose and 2,291 shares fell. A total of 239 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.51% to 11.10.

Numbers To Tracks:

In the commodities market, Brent crude for November 2026 settlement rose $2.04 or 2.12% to $98.32 a barrel.

The yield on India's 10-year benchmark federal paper fell 0.09% to 6.951 compared with the previous session close of 6.957.

In the foreign exchange market, the rupee lowered against the dollar. The partially convertible rupee was hovering at 94.8300 compared with its close of 94.5650 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement rose 0.12% to Rs 1,52,994.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.23% to 98.96.

The United States 10-year bond yield rose 0.27% to 4.797.

Global Markets:

The US stock market was set for a cautious reopening on Tuesday, after the Labor Day holiday, with Dow futures down about 400 points amid heightened Middle East tensions.

European equities declined while Asian market mostly ended lower on Tuesday, as surging crude prices and near-certainty of an imminent European Central Bank interest rate hike ignited fresh fears of a prolonged stagflation shock.

Brent crude climbed above $98 a barrel as tensions around the Strait of Hormuz intensified following US-Iran military confrontations. Iran has threatened tighter controls around the strategic waterway, raising concerns over possible disruptions to global oil supplies.

The rise in crude has also strengthened inflation concerns and complicated the Federal Reserve's policy outlook. Markets are pricing in more than a 60% probability of a 25-basis-point Fed rate hike at the September meeting. US inflation data due later this week could influence those expectations.

Investors are also watching renewed US-Canada trade tensions. Canada is set to impose retaliatory tariffs on around $20 billion of US goods, while President Donald Trump has threatened to block Bombardier from selling aircraft in the US unless the company manufactures them domestically.

New Listings:

Shares of Deepa Jewellers ended at Rs 194.30 on the BSE, representing a premium of 9.77% as compared with the issue price of Rs 177.

The stock debuted at Rs 221.05 on the BSE, a premium of 24.89% over its issue price. The stock has hit a high of Rs 222.10 and a low of Rs 193.10. On the BSE, over 35.07 lakh shares of the company were traded in the counter.

Shares of Rays of Belief ended at Rs 228.05 on the BSE, representing a discount of 4.50% as compared with the issue price of Rs 239.

The scrip was listed at 239, matching the initial public offer (IPO) price. The stock has hit a high of Rs 239 and a low of Rs 228. On the BSE, over 92,000 shares of the company were traded in the counter.

Stocks in Spotlight:

Sansera Engineering jumped 3.30% to Rs 4,025 after a foreign brokerage initiated coverage on the company with an 'outperform' rating and a target price of Rs 4,954.

Polycab India rose 1.36% to Rs 8,373.50 after a foreign brokerage retained its 'Buy' rating on the stock with a target price of Rs 11,100.

Garuda Construction and Engineering advanced 1.56% after the company's subsidiary Dream City Builders has secured a contract for building 93-storey landmark tower in Jeddah, Kingdom of Saudi Arabia. The project has an estimated revenue potential of Rs 1,800 crore.

GE Vernova T&D soared 8.77% after the firm received a contract from Power Grid Corporation of India to establish an High Voltage Direct Current (HVDC) LCC terminal station for evacuating renewable energy. The contract involves the design and establishment of a 6,000 MW, ?800 kV High Voltage Direct Current (HVDC) Line Commutated Converter (LCC) terminal station, comprising two 3,000 MW terminals. The project is aimed at supporting the evacuation of renewable power from Barmer II to South Kalamb.

Shiprocket declined 0.97%. The company reported a narrowing of its consolidated net loss to Rs 13.71 crore in Q1 FY27 from a net loss of Rs 18.03 crore in Q1 FY26. Revenue from operations declined 33.81% YoY to Rs 592.08 crore in Q1 FY27.

Organic Recycling Systems jumped 4.11% after the company announced that it has secured two landmark EPCOM contracts from Bharat Petroleum Corporation (BPCL), aggregating Rs 167.30 crore.

Sri Lotus Developers and Realty fell 1.36% after the company announced that its subsidiary has been appointed as the developer for a prestigious residential redevelopment project located at Model Town, Versova, Andheri (W), Mumbai.

Symphony surged 5.72% after the company announced plans to expand its India product portfolio through a calibrated and phased entry into room air conditioners, BLDC ceiling fans and air purifiers.

Separately, the company's founder promoter, chairman and managing director, Achal Anil Bakeri plans to gift approximately 3.43 lakh equity shares, representing 0.5% of the company?s equity share capital and valued at around Rs 20 crore at current market prices, from his personal holdings. The transfer of shares will be made as gifts to either the spouse, parents, or immediate relatives of employees (this includes ex-employees and housekeeping help) of the company, and the family office.

Initial Public Offer (IPO):

Pranav Constructions received bids for 40,16,68,320 shares as against 2,24,63,137 shares on offer, according to stock exchange data at 16:33 IST on 8 September 2026. The issue was subscribed 17.88 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.

Prasol Chemicals received bids for 21,93,158 shares as against 54,43,229 shares on offer, according to stock exchange data at 16:33 IST on 8 September 2026. The issue was subscribed 0.40 times.

The issue opened for bidding on 8 September 2026 and will close on 10 September 2026. The price band of the IPO is fixed between Rs 643 and 676 per share. An investor can bid for a minimum of 22 equity shares and multiples thereof.

Glass Wall Systems (India) received bids for 3,99,44,414 shares as against 1,64,57,298 shares on offer, according to stock exchange data at 16:33 IST on 8 September 2026. The issue was subscribed 2.43 times.

The issue opened for bidding on 8 September 2026 and will close on 10 September 2026. The price band of the IPO is fixed between Rs 172 and 182 per share. An investor can bid for a minimum of 82 equity shares and multiples thereof.

Kanohar Electricals received bids for 3,06,45,430 shares as against 1,16,93,326 shares on offer, according to stock exchange data at 16:33 IST on 8 September 2026. The issue was subscribed 2.62 times.

The issue opened for bidding on 8 September 2026 and will close on 10 September 2026. The price band of the IPO is fixed between Rs 601 and 632 per share. An investor can bid for a minimum of 23 equity shares and multiples thereof.

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