Nifty slips below 22,800 as rising oil prices, US yields trigger selling
The key equity benchmarks ended sharply lower on Monday as escalating Iran-US tensions pushed crude oil prices higher and raised concerns over prolonged supply disruptions. Rising US Treasury yields, a weaker rupee, continued foreign investor selling and weak Asian market cues added to the pressure. Brent crude moved close to $107 a barrel, while the US 10-year Treasury yield climbed above 5.2%. Continued FPI selling also dented sentiment. The Nifty settled below the 22,800 level. The sell-off was broad-based, with all sectoral indices ending lower, led by declines in banking, realty and metal stocks.
The S&P BSE Sensex tanked 1,124 points or 1.52% to 72,771.72. The Nifty 50 index dropped 360.25 points or 1.56% to 22,780.25.
Reliance Industries (down 2.32%), HDFC Bank (down 2.25%) and ICICI Bank (down 1.87%) were major Nifty drags today.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index and the BSE 250 SmallCap Index declined 1.62% each.
The market breadth was weak. On the BSE, 1,271 shares rose and 3,218 shares fell. A total of 245 shares were unchanged.
The NSE's India VIX, which gauges expected near-term market volatility, jumped 12.54% to 13.69.
Economy:
India?s industrial production growth accelerated to 8.0% year-on-year in August 2026, up from an upwardly revised 7.4% in July. Manufacturing output, which has the highest weight in the IIP, grew 9%, accelerating from 8.2% in July. Elsewhere, electricity and gas supply growth accelerated to 12.3% from 8.7% in July, while mining and quarrying output fell 5.6%, following a 0.9% decline in the previous month.
Numbers to Track:
In the commodities market, Brent crude for November 2026 settlement added $3.54 or 3.63% to $100.98 a barrel as uncertainty over the US-Iran conflict and the reopening of the Strait of Hormuz continued to influence supply concerns.
The United States 10-year bond yield advanced 0.93% to 5.235.
The yield on India's 10-year benchmark federal paper rose 0.80% to 7.177 compared with the previous session close of 7.120.
In the foreign exchange market, the rupee lowered against the dollar. The partially convertible rupee was hovering at 96.0100 compared with its close of 95.7500 during the previous trading session.
MCX Gold futures for 5 October 2026 settlement fell 2.14% to Rs 1,47,490.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.18% to 101.15.
Global Market:
US Dow Jones index futures were down 303 points on Monday, pointing to a weak opening for US stocks.
Investors braced for weakness in technology shares after OpenAI paused training of its latest artificial intelligence models amid several instances of its AI agents going rogue. The news came just days after OpenAI said it was investigating incidents involving OpenAI agents using government websites in unexpected manners.
Heightened tensions surrounding Iran also weighed on sentiment after US President Donald Trump rejected an Iranian peace proposal to resolve the conflict and reopen the Strait of Hormuz.
Meanwhile, European shares edged higher on Monday, supported by a rally in British housebuilders, although gains were capped by a rebound in oil prices and elevated bond yields.
British housebuilders' stocks surged after the government said it would confirm a new equity loan programme for first-time buyers in next month's budget, reviving a policy designed at boosting home ownership and supporting home construction.
On the other end, most Asian stock indices ended lower as investors remained cautious amid uncertainty over developments in the US-Iran conflict and the outlook for the Strait of Hormuz.
Last week on Wall Street, US stocks ended higher on Friday, led by gains in technology shares. The Dow Jones Industrial Average rose 0.93% to 51,828.62, while the S&P 500 gained 0.51% to 7,743.41. The Nasdaq Composite advanced 0.48% to 27,068.72.
US President Donald Trump said he expected the conflict with Iran to end very soon, while continuing to signal uncertainty over further military action. Investors also remained focused on developments around the Strait of Hormuz, a key route for global oil shipments.
Buzzing Index:
The Nifty Bank index dropped 1.99% to 54,471.65. Yes Bank (down 5.87%), Union Bank of India (down 4.69%), IDFC First Bank (down 3.88%), Canara Bank (down 3.47%) and Punjab National Bank (down 3.43%), Bank of Baroda (down 3.3%), HDFC Bank (down 2.25%), AU Small Finance Bank (down 2.23%), State Bank of India (down 2.14%) and ICICI Bank (down 1.87%) declined. However Federal Bank rose 0.93%.
Stocks in Spotlight:
Som Distilleries & Breweries surged 9.20% after the Madhya Pradesh High Court ordered the renewal of the company's manufacturing excise licences. The court also awarded costs of Rs 1 lakh to be paid to the company by the Government of Madhya Pradesh. It further preserved the company's right to pursue damages or losses arising from the period of operational closure before an appropriate forum.
Lupin declined 1.43%. The company said that it has received tentative approval from the United States Food and Drug Administration (U.S. FDA) for its new drug application for Apixaban oral suspension. Apixaban is an oral anticoagulant used to prevent and treat blood clots and reduce the risk of stroke in people with nonvalvular atrial fibrillation.
Silver Touch Technologies added 0.40%. The company announced the receipt of a purchase order from the Space Applications Centre (SAC), ISRO, for the supply of high-end workstations.
Kalpataru Projects International lost 0.95%. The company informed that it has received a letter of award (LoA) for the engineering, procurement and construction (EPC) of a gas pipeline project in the United Arab Emirates (UAE). According to the company's project classification, the 'major' project is valued over Rs 4,000 crore.
Jyoti CNC Automation fell 1.98% after the company disclosed a fire incident at its manufacturing facility in Rajkot. The fire occurred at one of the company's coating facilities on the morning of 26 September 2026, according to a regulatory filing dated 27 September. The company said the fire was contained and fully extinguished within 30-60 minutes, after which the situation was brought under control. Manufacturing operations resumed and continued normally without disruption, Jyoti CNC Automation said.
IPO Update:
Shah Investors? Home received bids for 11,72,320 shares as against 37,79,440 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 0.31 times.
The issue opened for bidding on 28 September 2026 and will close on 30 September 2026. The price band of the IPO is fixed between Rs 159 and 167 per share. An investor can bid for a minimum of 85 equity shares and multiples thereof.
SRIT India received bids for 1,17,17,925 shares as against 1,17,60,000 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 1 times.
The issue opened for bidding on 28 September 2026 and will close on 30 September 2026. The price band of the IPO is fixed between Rs 123 and 130 per share. An investor can bid for a minimum of 115 equity shares and multiples thereof.
A-One Steels India received bids for 8,55,60,909 shares as against 73,84,934 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 11.59 times.
The issue opened for bidding on 24 September 2026 and will close on 28 September 2026. The price band of the IPO is fixed between Rs 385 and 405 per share. An investor can bid for a minimum of 37 equity shares and multiples thereof.
Moneyview received bids for 22,88,93,42,070 shares as against 23,25,24,175 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 98.44 times.
The issue opened for bidding on 24 September 2026 and will close on 28 September 2026. The price band of the IPO is fixed between Rs 32 and 34 per share. An investor can bid for a minimum of 441 equity shares and multiples thereof.
AceVector received bids for 8,33,05,404 shares as against 7,42,29,166 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 1.12 times.
The issue opened for bidding on 25 September 2026 and will close on 29 September 2026. The price band of the IPO is fixed between Rs 30 and 32 per share. An investor can bid for a minimum of 468 equity shares and multiples thereof.
Runwal Enterprises received bids for 85,16,837 shares as against 1,21,11,294 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 0.70 times.
The issue opened for bidding on 25 September 2026 and will close on 29 September 2026. The price band of the IPO is fixed between Rs 290 and 305 per share. An investor can bid for a minimum of 49 equity shares and multiples thereof.
German Green Steel and Power received bids for 8,25,13,478 shares as against 1,60,62,879 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 5.14 times.
The issue opened for bidding on 25 September 2026 and will close on 29 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.
Orient Cables (India) received bids for 12,29,17,355 shares as against 1,49,76,743 shares on offer, according to stock exchange data at 16:54 IST on 28 September 2026. The issue was subscribed 8.21 times.
The issue opened for bidding on 25 September 2026 and will close on 29 September 2026. The price band of the IPO is fixed between Rs 258 and 272 per share. An investor can bid for a minimum of 55 equity shares and multiples thereof.
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