Nifty ends below 23,400 as crude surge, rising yields pressure equities

The key equity indices ended lower on Friday after a gap-down opening, as escalating tensions in the Middle East and a sharp rise in crude oil prices weighed on investor sentiment. The sell-off eased from the day's lows, but the Nifty remained below the 23,400 level, dragged by weakness in metal and auto shares. Brent crude surged amid concerns over supply disruptions, while the US 10-year Treasury yield moved close to 5%, adding to pressure on risk assets.

Concerns over persistent inflation also intensified after US producer prices rose 5.4% year-on-year in August. The data, along with a decline in weekly jobless claims, strengthened expectations of tighter Federal Reserve policy, with markets pricing in a roughly 70% probability of a rate hike at the upcoming meeting.

The market will remain closed on Monday, 14 September 2026, on account of Ganesh Chaturthi.

The S&P BSE Sensex declined 120.83 points or 0.16% to 74,781.76. The Nifty 50 index fell 79.70 points or 0.34% to 23,398.10.

Hindalco Industries (down 3.21%), State Bank of India (down 1.39%) and Reliance Industries (down 1.30%) were major Nifty drags today.

In the broader market, the BSE 150 MidCap Index fell 0.35% and the BSE 250 SmallCap Index rose 0.49%.

The market breadth was negative. On the BSE, 1,739 shares rose and 2,612 shares fell. A total of 230 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 3.92% to 12.26.

Numbers to Track:

In the commodities market, Brent crude for November 2026 settlement declined $3.89 or 3.61% to $103.74 a barrel.

The United States 10-year bond yield declined 0.04% to 4.942.

The yield on India's 10-year benchmark federal paper rose 0.52% to 7.017 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 95.5600 compared with its close of 95.5200 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement shed 0.15% to Rs 1,52,108.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 99.15.

Global Markets:

The US Dow Jones index futures were up 277 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 traded higher on Friday after data showed that the UK economy expanded faster than expected in July. UK gross domestic product (GDP) grew 1.6% year on year in July, while monthly output increased 0.4%, following growth of 0.3% in June and a flat reading in May.

Most Asian shares ended lower 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.

Stocks in Spotlight:

Cochin Shipyard slumped 9.17% after the company's FY27 EBITDA margin guidance of around 14% disappointed investors. During an analyst call on Thursday, the company guided for FY27 revenue growth of 12%, with potential to reach 15%. However, it expects the EBITDA margin to stabilise at around 14% in FY27, compared with 24% in FY26. Cochin Shipyard expects shipbuilding margins to settle at 10%-12%, while ship repair margins are expected to be at 22%-24%. The company expects its revenue mix to comprise around 70% shipbuilding and 30% ship repair going forward.

Diamond Power Infrastructure rose 5% after the company announced that it had completed its exit from the resolution framework under the Insolvency and Bankruptcy Code (IBC). The process was administered through the National Company Law Tribunal (NCLT).

Shankesh Jewellers rallied 2.94% 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 0.07%. The company announced that its fund-raising committee has approved the opening of a Qualified Institutions Placement (QIP) of equity shares aggregating up to Rs 600 crore. The committee fixed 10 September 2026 as the relevant date for the issue and approved a floor price of Rs 2,189.73 per equity share, determined in accordance with SEBI regulations.

Premier Energies slipped 0.65%. 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 0.42%. 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.

APL Apollo Tubes fell 1.88%. The company announced that it has incorporated an associate company, SG Enterprise Solutions, which will provide common corporate support services to participating group entities through a centralised shared services model.

Initial Public Offer (IPO):

Manika Plastech received bids for 3,04,31,904 shares as against 2,13,86,919 shares on offer, according to stock exchange data at 16:57 IST on 11 September 2026. The issue was subscribed 1.42 times.

The issue opened for bidding on 11 September 2026 and will close on 16 September 2026. The price band of the IPO is fixed between Rs 40 and 43 per share. An investor can bid for a minimum of 348 equity shares and multiples thereof.

Veegaland Developers received bids for 1,30,47,259 shares as against 1,13,07,692 shares on offer, according to stock exchange data at 16:57 IST on 11 September 2026. The issue was subscribed 1.15 times.

The issue opened for bidding on 10 September 2026 and will close on 15 September 2026. The price band of the IPO is fixed between Rs 130 and 140 per share. An investor can bid for a minimum of 107 equity shares and multiples thereof.

LCC Projects received bids for 1,01,50,20,870 shares as against 2,09,27,281 shares on offer, according to stock exchange data at 16:57 IST on 11 September 2026. The issue was subscribed 48.50 times.

The issue opened for bidding on 9 September 2026 and will close on 11 September 2026. The price band of the IPO is fixed between Rs 139 and 146 per share. An investor can bid for a minimum of 102 equity shares and multiples thereof.

Asset Reconstruction Company (India) received bids for 74,18,32,284 shares as against 3,69,12,363 shares on offer, according to stock exchange data at 16:57 IST on 11 September 2026. The issue was subscribed 20.10 times.

The issue opened for bidding on 9 September 2026 and will close on 11 September 2026. The price band of the IPO is fixed between Rs 132 and 139 per share. An investor can bid for a minimum of 107 equity shares and multiples thereof.

Steamhouse India received bids for 1,14,69,16,565 shares as against 3,76,36,363 shares on offer, according to stock exchange data at 16:57 IST on 11 September 2026. The issue was subscribed 30.47 times.

The issue opened for bidding on 9 September 2026 and will close on 11 September 2026. The price band of the IPO is fixed between Rs 77 and 81 per share. An investor can bid for a minimum of 185 equity shares and multiples thereof.

Manipal Payment and Identity Solutions received bids for 1,85,07,148 shares as against 1,30,60,472 shares on offer, according to stock exchange data at 16:57 IST on 10 September 2026. The issue was subscribed 1.42 times.

The issue opened for bidding on 9 September 2026 and will close on 11 September 2026. The price band of the IPO is fixed between Rs 322 and 339 per share. An investor can bid for a minimum of 44 equity shares and multiples thereof.

Rentomojo received bids for 1,58,66,30,892 shares as against 2,17,72,311 shares on offer, according to stock exchange data at 16:57 IST on 11 September 2026. The issue was subscribed 72.87 times.

The issue opened for bidding on 9 September 2026 and will close on 11 September 2026. The price band of the IPO is fixed between Rs 384 and 404 per share. An investor can bid for a minimum of 37 equity shares and multiples thereof.

Karamtara Engineering received bids for 1,59,14,48,477 shares as against 2,54,14,937 shares on offer, according to stock exchange data at 16:57 IST on 11 September 2026. The issue was subscribed 62.62 times.

The issue opened for bidding on 9 September 2026 and will close on 11 September 2026. The price band of the IPO is fixed between Rs 241 and 254 per share. An investor can bid for a minimum of 59 equity shares and multiples thereof.

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