Nifty trade below 23,300 in early trade; breadth weak

The key equity benchmarks traded with major cuts in early trade, as Brent crude surged to $110 per barrel amid an escalation in the Middle East conflict, prompting investors to flee risk assets. India remains particularly vulnerable to higher oil prices. Markets were also weighed down by a busy IPO season, with large offerings from NSE and potentially Jio Platforms. The Nifty traded below the 23,300 level. Realty, metal and auto shares declined, while IT stocks advanced on the NSE.

At 09:30 IST, the barometer index, the S&P BSE Sensex, tanked 632.55 points or 0.85% to 74,274.27. The Nifty 50 index lost 217.90 points or 0.90% to 23,259.90.

In the broader market, the BSE 150 MidCap Index fell 1.25% and the BSE 250 SmallCap Index shed 1.29%.

The market breadth was weak. On the BSE, 800 shares rose and 2,357 shares fell. A total of 177 shares were unchanged.

FPIs sold shares worth Rs 14247.69 crore in September so far, through 10 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.

India to Hold 18th BRICS Summit on 12-13 September:

India assumed the BRICS presidency for 2026, its fourth after 2012, 2016 and 2021, and will host the 18th BRICS Summit in New Delhi on 12-13 September 2026 under the theme Building for Resilience, Innovation, Cooperation, and Sustainability. During its chairship, more than 350 meetings and high-level engagements have been held across 25 Indian cities, with the agenda focusing on practical cooperation in areas including agriculture, healthcare, digital technology, energy, urban infrastructure, MSMEs, startups, logistics, global value chains, and customs. Key initiatives include the BRICS Startup Innovation Fund, MSME Cooperation Portal, Digital Agriculture Network, Smart Grids and Energy Storage platform, Urban Mobility Hub, and Logistics Supply-Chain Cooperation Framework.

NSE to Launch Rs 22,569 Crore IPO on 17 September:

NSE will launch its IPO for subscription from 17 September to 21 September 2026, with anchor bidding on 16 September. The price band is set at Rs 1,700-1,785 per share, with a lot size of 8 shares and a minimum retail investment of Rs 14,280.

The IPO is entirely an offer for sale of 12,64,36,650 shares by existing shareholders. At the upper price band, the issue size is Rs 22,568.94 crore, lower than the earlier plan of around Rs 30,000 crore after the proposed OFS was reduced. Eligible NSE employees will receive a discount of Rs 170 per share.

Allotment is expected on 22 September, with listing likely on 24 September. SBI has reduced its proposed OFS to around 1.60 crore shares from 2.47 crore, while Morgan Stanley Strategic (Mauritius) has cut its offer to 1.1 crore shares from 1.6 crore.

Stocks in Spotlight:

Shankesh Jewellery rose 5.48% after the company reported a 100.14% surge in consolidated net profit to Rs 43.23 crore in Q1 FY27 compared with Rs 21.60 crore in Q1 FY26. Revenue from operations jumped 55.06% YoY to Rs 423.57 crore in Q1 FY27.

Neogen Chemicals shed 0.97%. The company?s board approved raising funds through qualified institutional placement (QIP) with a floor price of Rs 2,189.73 per equity share. The company may offer upto 5% discount to floor price.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.66% to 7.027 compared with the previous session close of 6.981.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.7450 compared with its close of 95.5200 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement shed 0.90% to Rs 1,50,197.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.07% to 99.14.

The United States 10-year bond yield rose 0.69% to 4.978.

In the commodities market, Brent crude for November 2026 settlement rose 71 cents or 0.66% to $108.31 a barrel.

Global Markets:

The US Dow Jones index futures were up 107 points, pointing to a higher opening for US stocks on Friday. However, the broader global market backdrop remained cautious as investors assessed surging crude oil prices, rising bond yields and the risk of further monetary tightening.

Asian shares came under heavy selling pressure in early trade, with Japan?s Nikkei 225 and South Korea?s Kospi among the biggest decliners. Weakness was also seen in other regional markets as investors reacted to the latest escalation in the Middle East and the resulting jump in energy prices.

Japan's wholesale inflation rose 7.6% in August from a year earlier, BOJ data showed. It followed a revised 7.7% gain in July.

Brent crude was trading around $108.35 a barrel, down 0.54%, after jumping 5.9% on Thursday to settle at $107.63.

The rise in crude prices has intensified concerns that a prolonged conflict could keep global inflation elevated. The latest escalation has also raised concerns over shipping through key Middle Eastern and Red Sea routes, adding to uncertainty over the availability and cost of crude supplies.

US stocks fell for a fourth consecutive session on Thursday. The Dow Jones Industrial Average declined 316.56 points, or 0.60%, to 52,064.10, while the S&P 500 fell 0.58% to 7,591.70 and the Nasdaq Composite declined 0.65% to 26,081.72. The S&P 500's four-session losing streak came as investors reassessed the outlook for inflation and interest rates following the surge in oil prices.

The sell-off in equities was accompanied by a sharp rise in US Treasury yields. The 10-year yield moved close to 5%, reaching levels not seen since 2023, while the 30-year yield also climbed to a multi-year high. Higher yields increase borrowing costs and can put pressure on equity valuations, particularly interest-rate-sensitive and growth stocks.

Investors are also digesting the latest US inflation data. The Producer Price Index for final demand increased 0.4% month-on-month in August, while prices rose 5.4% from a year earlier. Energy prices were a major contributor, with final-demand energy prices rising 4.2% in August and diesel prices jumping 24.1%.

Attention now turns to the US Consumer Price Index for August, due later on Friday. The CPI will be closely watched ahead of the Federal Reserve's September 15-16 meeting, as policymakers assess whether higher energy prices are feeding into broader inflation. Markets are currently pricing roughly a 70-71% probability of a 25-basis-point Fed rate hike next week, according to CME FedWatch data.

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