Benchmarks come off the day's high; European markets trade flat

The benchmark indices came off the day's high in afternoon trade as a weakening rupee, higher crude oil prices and elevated global bond yields weighed on sentiment. The Nifty slipped below the 23,350 level. Realty, financials and oil & gas stocks declined while IT & media shares managed to buck the trend.

At 13:25 IST, the barometer index, the S&P BSE Sensex declined 405.20 points or 0.54% to 74,497.39. The Nifty 50 index declined 139.65 points or 0.59% to 23,338.15.

In the broader market, the BSE 150 MidCap Index fell 0.50% and the BSE 250 SmallCap Index dropped 0.66%.

The market breadth was negative. On the BSE, 1,525 shares rose and 2,660 shares fell. A total of 258 shares were unchanged.

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.

Gainers & Losers:

Dr Reddy's Lab (up 2.73%), Tech Mahindra (up 0.95%), HCL Tech (up 0.91%), Tata Motors Passenger Vehicles (up 0.70%) and Wipro (up 0.57%) were the top gainers.

JSW Steel (down 2.58%), Hindalco (down 0.99%), Tata Steel (down 2.40%), Bajaj Finserv (down 1.91%) and Maruti Suzuki India (down 1.60%) were the top losers.

Stocks in Spotlight:

Kalpataru (KL) shed 0.68%. Crisil Ratings has downgraded its rating on the long-term bank facility of the company to 'Crisil BBB/Stable? from 'Crisil BBB+/Stable'.

Premier Energies slipped 0.77%. The company said that it has entered into a binding term sheet with RCT India, part of RCT Group, Germany, to form a joint venture (JV) to establish a 12 GWh battery energy storage system (BESS) manufacturing facility in Telangana.

JSW Infrastructure lost 0.41%. The company said that it has completed the acquisition of NCR Rail Infrastructure through its wholly owned step-down subsidiary Khurja Rail Terminal, effective 10 September 2026. The acquisition consideration is Rs 467.47 crore, with a further Rs 41.94 crore paid for approximately 39.57 acres from Arshiya under the resolution plan.

Global Markets:

The US Dow Jones index futures were up 186 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.

European markets swung around the flat line while Asian shares declined across the board on Friday 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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