GIFT Nifty rises as Asian shares advance, but oil near $100 clouds sentiment

GIFT Nifty:

GIFT Nifty September 2026 futures were up 22.50 points, indicating a positive start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 123.19 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,349.64 crore in the Indian equity market on 8 September 2026, according to provisional data.

FPIs sold shares worth Rs 13918.41 crore in September so far, through 8 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.

Global Markets:

Most Asian indices were trading higher on Wednesday, with sentiment supported by a rebound in Chinese inflation, although gains remained cautious as investors monitored escalating Middle East tensions and rising crude oil prices.

China?s CPI rose 0.8% year on year in August, accelerating from 0.5% in July, while core CPI increased 1.0% from 0.9% a month earlier. The PPI rose 3.8%, up from 3.5% in July. China?s official data attributed the rise in consumer inflation partly to higher energy prices, while the producer-price increase reflected higher international commodity prices and stronger demand in some high-tech industries.

Oil prices remained a major market concern. Brent crude climbed close to $100 a barrel after attacks on Saudi energy infrastructure by Iran-backed Houthi militants and further US-Iran military escalation. The surge has renewed concerns that higher energy costs could keep inflation elevated and limit central banks' room to cut interest rates.

The geopolitical situation also intensified after the US said its forces destroyed five Iranian oil tankers following an attempted attack on a US Navy vessel. The US Treasury also announced fresh sanctions targeting Iran's aviation sector, adding another layer of pressure on Tehran.

Wall Street ended lower on Tuesday as the rise in crude prices revived inflation concerns. The Dow Jones Industrial Average fell 1.18% to 52,786.07, the S&P 500 declined 0.58% to 7,673.52 and the Nasdaq Composite dropped 0.32% to 26,421.41. The US 10-year Treasury yield also moved near 4.8%.

Markets are now focused on US inflation data due later this week. The August CPI, scheduled for Friday, is expected to provide fresh clues on the Federal Reserve's policy path ahead of its 16-17 September meeting. Rising oil prices have increased concerns that a renewed inflationary push could complicate the Fed's decision on interest rates. Markets were pricing roughly a 60% probability of a rate hike next week.

Domestic Market:

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.

Powered by Capital Market - Live News