Closing Bell: Sensex Falls 374 Points, Nifty 50 Down 141 Points as Global Selloff Weighs on Markets

Market Update at 04:00 PM: The benchmark equity indices, Sensex and Nifty 50, closed in negative territory on Wednesday, tracking a global selloff after U.S.-Iran strikes heightened concerns over potential disruptions to oil flows. The resulting rise in crude oil prices revived inflation concerns and pushed global bond yields higher, weighing on investor sentiment.

The Nifty 50 witnessed a volatile trading session. The index opened gap down at 23,858.00 and initially slipped to an Intraday low of 23,786.80 before recovering towards the 23,900 mark. However, the recovery remained capped as selling pressure continued at higher levels, with the index trading in a narrow range for most of the session. In the closing auction session, the index recovered sharply to close above the 23,900 mark.

At close, the Nifty 50 settled at 23,914.45, down 141.35 points, or 0.59 per cent. The Sensex declined 373.93 points to close at 76,570.35. Meanwhile, the Bank Nifty closed 0.41 per cent lower, while India VIX advanced 3.33 per cent, indicating a rise in market volatility.

Indian auto sales maintained strong momentum in August 2026, supported by robust domestic demand and improving festive-season buying. Tata Motors Passenger Vehicles reported 56 per cent year-on-year growth in sales to 67,753 units, while Mahindra and Mahindra’s overall auto sales increased 42 per cent to 1,07,648 vehicles, led by a 50 per cent jump in SUV sales.

Maruti Suzuki recorded a 21 per cent increase in total sales to 2.19 lakh units, supported by strong domestic demand and a 35 per cent rise in passenger vehicle sales. In the two-wheeler segment, Bajaj Auto’s sales increased 28 per cent to 5.35 lakh units, while TVS Motor grew 21 per cent to 6.16 lakh units. TVS Motor’s electric two-wheeler sales surged 137 per cent. Hero MotoCorp reported 2.6 per cent growth, with sales reaching 5.68 lakh units.

Overall, strong domestic demand, improving rural activity, SUV momentum and festive-season buying are supporting the automobile sector. However, uneven exports and global uncertainties remain key concerns.

India’s Unified Payments Interface (UPI) transactions reached a record 24.51 billion in August 2026, crossing the 24 billion mark for the first time. Transaction volumes increased 3.6 per cent month-on-month and around 22 per cent year-on-year.

The transaction value stood at Rs 29.82 lakh crore, broadly stable compared with July. Festive activity around Raksha Bandhan and Onam supported higher person-to-person transfers, small-ticket purchases and everyday digital payments.

The record transaction volume highlights the continued expansion of UPI across consumers, merchants and smaller businesses, reinforcing its role as a key pillar of India’s digital payments ecosystem.

The broader market also ended lower. The Nifty Midcap 100 index declined 0.53 per cent, touching a nearly one-month low, while the Nifty Smallcap 100 index fell 0.37 per cent, extending its previous losses.

On the sectoral front, three of the 11 sectoral indices ended in positive territory. The Nifty IT index advanced 0.58 per cent, snapping a three-day losing streak.

In contrast, the Nifty Auto index declined 1.79 per cent, extending its losses for the sixth consecutive trading session. The automobile sector delivered strong year-on-year growth in August across segments and major players. However, some moderation was visible on a month-on-month basis.

Among individual stocks, Coal India bucked the broader market trend and gained 4.05 per cent after the state-owned company reported a 5.5 per cent increase in total coal supplies in August. The company is also selling a 10 per cent stake in Mahanadi Coalfields through an initial public offering by its subsidiary, according to draft papers filed with the market regulator.

Sun Pharma also gained after becoming the sole Indian-headquartered company to sign a most-favoured-nation pricing agreement with the U.S. The agreement removes the tariff overhang for two years.

Coal India was the biggest contributor to the Nifty 50, adding 8.46 points to the index. Reliance Industries contributed 5.97 points, while Adani Ports and Special Economic Zone added 4.29 points.

On the other hand, HDFC Bank was the biggest drag on the index, weighing down the Nifty 50 by 37.04 points. ICICI Bank and Mahindra and Mahindra dragged the index by 17.95 points and 13.45 points, respectively.

Market breadth remained in favour of declining stocks on September 2, 2026. Out of 3,630 stocks traded on the NSE, 1,445 advanced, 2,073 declined and 112 remained unchanged.

A total of 104 stocks touched their 52-week highs, while 130 stocks hit their 52-week lows. Additionally, 116 stocks were locked in their Upper Circuits, whereas 99 stocks were locked in Lower Circuits.

Market Update at 2:20 PM: Indian benchmark indices were trading lower on Wednesday as global equities declined amid concerns over inflation and the possibility of higher interest rates. The weakness was reflected across benchmark and broader market indices, with selling pressure visible in several sectors.

As of 2:00 PM, the Sensex fell 507.76 points, or 0.66 per cent, to 76,436.52. The Nifty 50 declined 185.15 points, or 0.77 per cent, to 23,870.65.

Among the Nifty 50 constituents, Infosys, Eicher Motors and Shriram Finance were the Top Losers, weighing on the benchmark index.

The broader market also remained under pressure. The Nifty MidCap index declined 1.17 per cent, while the Nifty SmallCap index fell 0.80 per cent, indicating broader selling across the market.

Sector-wise, the Nifty IT index declined more than 2 per cent and emerged as the biggest underperformer among the sectoral indices. The Nifty Auto and Nifty FMCG indices also underperformed. In contrast, the Nifty Pharma and Nifty Healthcare indices outperformed the broader market and remained relatively resilient.

Market Update at 01:00 PM: Indian equity markets remained under pressure on Wednesday as rising crude oil prices and weak global cues weighed on investor sentiment. The Sensex fell 580.87 points, or 0.75 per cent, to close at 76,363.41, while the Nifty 50 declined 205.80 points, or 0.86 per cent, to settle at 23,850.00. The selloff was broad based, with investors turning cautious amid renewed geopolitical concerns and inflation worries.

The broader market also witnessed selling pressure. The Nifty Midcap 100 index declined around 1.4 per cent, while the Nifty Smallcap 100 index slipped nearly 1.9 per cent, indicating weakness beyond the frontline indices. The Nifty Bank index ended lower by 344.45 points, or 0.60 per cent, as private banking stocks faced selling pressure.

Sectoral performance remained weak, with all major sectoral indices closing in the red. The Nifty Auto index was among the worst performers, falling 2.26 per cent as concerns over higher crude prices and input cost pressures impacted sentiment. Realty and Metal stocks also witnessed selling pressure, with both sectors declining more than 2 per cent during the session.

The Nifty IT index also remained under pressure, declining around 1.3 per cent as global technology stocks faced weakness following a fall in US markets. On the other hand, defensive pockets such as select pharmaceutical stocks managed to outperform, with Sun Pharma gaining after receiving relief on US pricing concerns.

Market Update at 10:55 PM: Indian benchmark equity indices traded lower in early trade on Wednesday, September 2, as weakness in global equities amid concerns over inflation and potential interest rate hikes weighed on investor sentiment.

As of 10:46 AM, the Sensex declined 559.77 points, or 0.73 per cent, to 76,384.51, while the Nifty 50 fell 193.30 points, or 0.80 per cent, to 23,862.50. Selling pressure remained broad-based, with investors cautious amid concerns over higher crude oil prices and their impact on inflation and interest rates.

The broader market also witnessed significant selling. The Nifty MidCap index declined 1.06 per cent, while the Nifty SmallCap index fell 0.87 per cent, indicating weakness beyond the benchmark indices.

Sector-wise, selling was broad-based, with most sectoral indices trading in the red. The Nifty IT index declined over 2 per cent and underperformed other sectoral indices. The Nifty Auto and Nifty FMCG indices also remained under pressure. Meanwhile, the Nifty Pharma and Nifty Healthcare indices outperformed their peers.

The Realty, Auto and Banking sectors remained under pressure as investors assessed the potential impact of higher crude oil prices on inflation-sensitive segments and interest rates.

In stock-specific action, Coal India gained around 1.6 per cent after reporting a 5.5 per cent rise in coal supplies in August and announcing plans related to the IPO of its subsidiary, Mahanadi Coalfields.

Mphasis was another notable gainer, rising over 3 per cent in early trade. On the other hand, Infosys, Eicher Motors and Shriram Finance emerged as the top losers in the Nifty 50 index.

Stocks linked to consumption and rate-sensitive sectors remained under pressure as investors turned cautious amid the broader market weakness.

Market Update at 09:30 AM: The Nifty 50 and the Sensex were trading lower in early trade as global equities declined amid renewed concerns over inflation and potential rate hikes. At 9:18 AM, the Sensex slumped 723.44 points, or 0.94 per cent, to 76,220.84, while the Nifty 50 declined 226.35 points, or 0.94 per cent, to 23,829.45.

Within the Nifty 50 index, Infosys, Eicher Motors and Shriram Finance were among the top losers during early trade.

In the broader markets, the Nifty MidCap index declined 1.06 per cent, while the Nifty SmallCap index fell 0.87 per cent, indicating broad-based selling pressure.

Among sectoral indices, the Nifty IT index declined over 2 per cent and underperformed other sectors. The Nifty Auto and Nifty FMCG indices also underperformed. Meanwhile, the Nifty Pharma and Nifty Healthcare indices outperformed the broader market.

Pre-Market Update at 7:40 AM: GIFT Nifty was trading around 24,036 in early trade on September 2, 2026, indicating a muted start for Indian equities. The contract was down around 14 points, from its previous close of 24,051. During the session, GIFT Nifty moved between 24,026.5 and 24,270, reflecting volatility amid weak global cues.

The subdued opening signal comes after the Nifty 50 closed at 24,055.80 on September 1, down 24.60 points, or 0.10 per cent, as Banking, auto and pharma stocks weighed on the benchmark. The market setup remains sensitive to global risk factors, particularly crude oil prices, U.S. bond yields and geopolitical developments.

Wall Street ended lower on Tuesday as renewed tensions in the Middle East pushed crude oil prices higher and increased concerns over inflation. The S&P 500 declined 0.71 per cent to 7,631.47, the Dow Jones Industrial Average fell 0.79 per cent to 52,766.88, while the Nasdaq Composite dropped 1.03 per cent to 26,099.77.

Selling pressure was driven by concerns that rising energy prices could slow the pace of monetary easing. Brent crude surged after renewed U.S. military action involving Iran increased fears of supply disruptions through the Strait of Hormuz. Higher Treasury yields also pressured technology stocks and other rate-sensitive segments.

The U.S. 10-year Treasury yield climbed towards 4.79 per cent, while expectations of a Federal Reserve rate hike strengthened amid renewed inflation concerns. Markets are currently assigning around a 67 per cent probability of a 25-basis-point Fed rate hike at the September meeting.

Asian markets opened sharply lower on Wednesday as investors reacted to higher crude oil prices and rising bond yields. Japan’s Nikkei 225 declined around 2.2 per cent, while South Korea’s KOSPI fell nearly 3 per cent in early trade. The broader MSCI Asia Pacific index excluding Japan was down around 0.8 per cent.

The decline was driven by renewed geopolitical tensions, which pushed Brent crude towards USD 95 per barrel and raised concerns about global inflation. China market cues remained mixed, with the Shanghai Composite previously closing higher at 3,979.89, up 0.70 per cent, while Hong Kong’s Hang Seng remained under pressure amid global risk aversion.

European equities ended the previous session under pressure amid concerns over oil prices, inflation and higher bond yields. The FTSE 100 declined 0.32 per cent, Germany’s DAX dropped 2.26 per cent and France’s CAC 40 declined 1.18 per cent.

Brent crude futures rose to around USD 96.21 per barrel, extending gains after renewed U.S. strikes on Iran increased concerns over possible supply disruptions. Higher crude prices could weigh on oil-importing economies such as India.

A sustained rise in crude prices could pressure sectors such as aviation, paints and oil marketing companies, while upstream oil producers could benefit from higher prices. Companies dependent on energy-intensive inputs may face margin pressure. WTI crude also moved higher, crossing above USD 90 per barrel during the previous session.

International gold prices declined sharply on Tuesday as a stronger U.S. dollar and rising Treasury yields reduced demand for non-yielding assets. Gold fell more than 2 per cent to around USD 4,295.20 per ounce. Silver prices also declined around 1 per cent amid broader weakness across precious metals. Domestic MCX gold and silver prices could not be independently verified from the available data.

The U.S. Dollar Index remained firm near a two-week high as investors preferred safe-haven assets amid geopolitical uncertainty. The Indian rupee strengthened on September 1, closing at 94.95 per U.S. dollar, supported by RBI intervention and foreign currency inflows. However, elevated crude oil prices and global bond yields remain key risks for the currency.

Foreign institutional investors turned buyers in Indian equities on September 1, recording net purchases of Rs 1,143.38 crore. Domestic institutional investors also remained buyers, with net purchases of Rs 1,846.94 crore.

The Nifty 50 closed at 24,055.80 on September 1, declining 24.60 points, or 0.10 per cent. The Sensex ended at 76,944.28, declining around 13 points. The benchmark remained close to the psychological support zone of 24,000.

India VIX data could not be independently verified from the available data. The volatility environment remains elevated due to crude oil movements and geopolitical uncertainty.

Rising geopolitical risks lifted Brent crude towards USD 95 per barrel, raising inflation concerns and weighing on global equities. FIIs bought Rs 1,143 crore worth of Indian equities on September 1 after recent selling pressure, which could support domestic market sentiment, although global risks remain a concern.

India’s Q1 FY27 GDP growth of 7.8 per cent continues to provide support to the domestic growth outlook, although elevated crude oil prices remain a key risk factor. Nearly 90 companies, including NTPC and Coal India, are scheduled for record dates linked to Dividends, Bonuses and Stock Splits during the week.

Higher U.S. Treasury yields are increasing pressure on equity valuations, particularly technology stocks and other rate-sensitive segments.

Hero MotoCorp’s monthly sales data remains a key trigger for the stock after an improvement in volumes. Coal India’s higher e-auction prices and coal demand trends will remain in focus. NMDC’s production growth data could influence sentiment around the mining company.

Reliance Consumer Products has entered the ice cream segment, expanding Reliance Industries’ FMCG footprint. Happiest Minds remained under pressure after ITC Infotech announced acquisition-related developments involving the company. TBZ shares gained sharply after GRT Jewellers agreed to acquire a 74.12 per cent stake in the company.

Disclaimer: The article is for informational purposes only and not investment advice.

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