Closing Bell: Sensex, Nifty 50 End Lower for 4th Session as Iran Tensions, Crude Oil Weigh

Market Update at 04:00 PM: Indian markets extended losses for a fourth session on September 3, with the Nifty 50 falling 0.17 per cent and the Sensex declining 411.49 points. Iran-related tensions and Brent crude near USD 97 pressured sentiment. Bank Nifty gained 0.36 per cent after strong RBI-led forex inflows boosted banking-system liquidity. Realty rallied, while IT declined.

The Indian benchmark equity indices, Sensex and Nifty 50, ended lower on Thursday, September 3, extending their losing streak to four consecutive sessions. Investor sentiment remained under pressure after Iran said it had attacked U.S. bases in the UAE and Kuwait, while rising crude oil prices and global bond yields added to concerns over inflation and interest rates.

The benchmarks have now fallen more than 1 per cent over the past four sessions as investors reassessed the possibility of interest rates remaining higher for longer. Rising crude prices have also increased concerns over India's inflation outlook, the rupee and external balances.

The Nifty 50 remained under pressure throughout the session after failing to sustain levels above the 24,000 mark. The index opened at 23,997.95 and touched an Intraday high of 24,025.40 before declining to a low of 23,876.85. The index remained range-bound for most of the second half of the session, but selling intensified during the closing auction session, pushing the index below its day's low.

At the close, the Nifty 50 settled at 23,873.45, down 41 points, or 0.17 per cent. The Sensex declined 411.49 points to close at 76,152.86, extending its losses for the fourth consecutive trading session. In contrast, the Bank Nifty gained 0.36 per cent, supported by gains in major banking stocks.

India's services sector regained some momentum in August, with the HSBC India Services PMI rising to 54.1 from 53.3 in July. However, growth remained close to a four-year low, with new business expansion continuing to remain subdued amid weak bookings and intense competition.

Hiring conditions improved during the month, while input cost pressures increased. Selling prices also rose at their fastest pace since March, indicating a rise in pricing pressures within the services sector.

Banking stocks gained on September 3 after the Reserve Bank of India's special foreign-currency mobilisation measures attracted USD 136.38 billion in inflows, significantly exceeding expectations.

The strong inflows helped push banking-system liquidity to Rs 6.65 lakh crore, its highest level since May 2022. The improvement in liquidity supported banking stocks and raised expectations of better funding availability ahead of the festive season.

Brent crude oil prices remained elevated on Thursday, with futures trading around USD 96.93 per barrel after recovering from the day's low. Crude prices remained under pressure from concerns over potential supply disruptions following Iran's statement that it had attacked U.S. bases in the UAE and Kuwait.

Higher crude oil prices remain a key concern for India, given the country's dependence on imported oil. Sustained elevated crude prices could increase inflationary pressures and weigh on the rupee and corporate margins.

The broader market outperformed the benchmark indices on Thursday. The Nifty Midcap 100 index ended 0.37 per cent higher, while the Nifty Smallcap 100 index gained 1.20 per cent, snapping a three-session losing streak.

The broader market's positive performance contrasted with the weakness in the benchmark indices, indicating continued buying interest in mid- and Small-Cap stocks.

Sectoral performance was largely positive, with seven of the 11 Nifty sectoral indices ending in positive territory. The Nifty Realty index was the top performer, jumping 2.58 per cent and recording its biggest gain in eight weeks. All constituents of the index ended the session with gains of more than 1 per cent.

On the other hand, the Nifty IT index declined 0.85 per cent, making it the worst-performing sector. Nine of the 10 constituents of the index ended in negative territory.

Among individual stocks, Godrej Consumer Products declined 2.76 per cent amid concerns over near-term pressure from sustained palm oil inflation and worries around execution efficiency.

IT services company Hexaware Technologies fell 2.67 per cent after the exit of its CEO raised concerns over the company's growth outlook.

HDFC Bank was the biggest positive contributor to the Nifty 50, adding 19.53 points to the index. Axis Bank contributed 8.19 points, while Adani Ports and Special Economic Zone added 5.77 points.

On the downside, Reliance Industries was the biggest drag, reducing the index by 15.45 points. Mahindra & Mahindra weighed by 7.79 points, while Infosys dragged the index down by 7.46 points.

Market breadth remained positive on September 3 despite the decline in the benchmark indices. Of the 3,628 stocks traded on the NSE, 2,208 advanced, 1,313 declined and 107 remained unchanged.

A total of 127 stocks touched their 52-week highs, while 85 stocks hit their 52-week lows. Meanwhile, 160 stocks were locked in their Upper Circuits and 80 stocks were locked in their Lower Circuits.

Overall, the Indian market remained under pressure for a fourth consecutive session, with geopolitical tensions and elevated crude oil prices continuing to weigh on sentiment. However, strength in banking, realty and broader-market stocks provided some support, while investors continued to monitor global bond yields, crude oil prices and developments in the Middle East for further market direction.

Market Update at 2:20 PM: The Nifty 50 and Sensex traded largely flat as U.S. President Donald Trump played down the prospect of a prolonged conflict with Iran, easing some concerns over geopolitical risks.

As of 2:00 PM, the Sensex was up 2.85 points, or largely flat, at 76,573.20, while the Nifty 50 was flat at 23,914.60. Benchmark indices remained range-bound as investors continued to assess developments surrounding the U.S.-Iran conflict.

Among Nifty 50 constituents, ICICI Bank, Adani Ports and Special Economic Zone, and Axis Bank were the Top Gainers, supporting the benchmark indices.

In the broader markets, the Nifty MidCap index was trading 0.23 per cent higher, while the Nifty SmallCap index gained 1.21 per cent, indicating stronger buying interest in broader market stocks.

Sector-wise, the Nifty Realty index outperformed, gaining 2 per cent, while the Nifty IT index underperformed. Overall, the market remained subdued despite easing concerns over a prolonged geopolitical conflict.

Market Update at 12:40 PM: Indian markets traded with a positive bias on Thursday as financial stocks supported the recovery after recent weakness. The Sensex was trading around 76,900 levels, up nearly 320 points or 0.4 per cent, while the Nifty 50 hovered near 24,000, gaining around 80 points or 0.3 per cent. The rebound came after three consecutive sessions of pressure, with buying interest returning in banks and select Large-Cap stocks.

The broader market also reflected improving sentiment. Nifty Bank gained close to 1 per cent, supported by private and PSU banking stocks, while mid and small-cap indices traded higher. Nifty Smallcap 100 was up around 1 per cent, indicating renewed participation beyond frontline stocks.

Sectorally, banking stocks remained in focus, with Nifty PSU Bank rising around 1.7 per cent and Nifty Realty gaining more than 2 per cent. Financial services stocks benefited from optimism around improved liquidity conditions after foreign currency inflows through RBI-supported measures. Nifty Media also traded firm, while IT stocks remained under pressure amid concerns around global technology spending.

Among individual movers, RBL Bank gained sharply after raising foreign currency funds, boosting investor confidence around liquidity and margins. Adani Ports moved higher by around 1.6 per cent, supported by buying interest in large-cap infrastructure names. HDFC Bank gained over 1 per cent, helping the banking index maintain momentum. On the weaker side, Hexaware Technologies declined after concerns related to leadership changes, while Godrej Consumer Products remained under pressure due to concerns around input cost trends.

Market Update at 10:35 PM: The Nifty50 and the Sensex rose as US President Donald Trump played down the prospect of a prolonged conflict with Iran.

As of 10:31 AM, the Sensex rose 223.06 points or 0.29 per cent to 76,793.41, while the Nifty50 gained 70.75 points or 0.30 per cent to 23,985.20.

ICICI Bank, Adani Ports and Special Economic Zone, and Axis Bank were the top gainers on the Nifty50.

In the broader markets, the Nifty MidCap and Nifty SmallCap indices were trading 0.29 per cent and 0.82 per cent higher, respectively.

Sector-wise, the Nifty PSU Bank outperformed with a gain of over 1 per cent. The Nifty Private Bank, Nifty Bank and Nifty Metal indices also outperformed, while Nifty IT and Nifty FMCG declined the most.

Market Update at 09:30 AM: Indian benchmark equity indices opened higher on Thursday after U.S. President Donald Trump played down the prospect of a prolonged conflict with Iran, easing concerns over the impact of geopolitical tensions on global markets.

The Sensex rose 213 points, or 0.28 per cent, to 76,783.35, while the Nifty 50 gained 73 points, or 0.31 per cent, to 23,987.45 as of 9:21 AM.

Among Nifty 50 constituents, ICICI Bank, Adani Ports and Special Economic Zone, and Axis Bank were the top gainers during the early trading session.

Broader markets also witnessed buying interest. The Nifty MidCap index advanced 0.29 per cent, while the Nifty SmallCap index gained 0.82 per cent.

Sectoral performance was largely positive, with the Nifty PSU Bank emerging as the top-performing sector, gaining more than 1 per cent. The Nifty Private Bank, Nifty Bank and Nifty Metal indices also outperformed. In contrast, the Nifty IT and Nifty FMCG indices witnessed the sharpest declines.

Pre-Market Update at 7:40 AM: Indian equities are likely to begin Thursday’s session on a positive note, with GIFT Nifty indicating a higher opening after the Nifty 50 slipped below the 24,000 mark in the previous session. Global markets witnessed a recovery overnight as U.S. equities rebounded from recent weakness, while concerns over crude oil prices, elevated bond yields and geopolitical tensions continue to influence investor sentiment.

GIFT Nifty was trading around 24,083 in early trade, higher by nearly 118 points. The move indicates a mildly positive opening for Indian equities, although the sustainability of gains will depend on global cues, crude oil movement and domestic technical levels.

The Nifty 50 declined for the third consecutive session on Wednesday, closing at 23,914.45, down 141.35 points or 0.59 per cent. The index remained under pressure as rising crude oil prices and concerns around global inflation weighed on market sentiment.

U.S. equity markets ended higher on Wednesday, supported by gains in technology stocks and easing pressure from bond yields. The Dow Jones Industrial Average gained 295.01 points or 0.56 per cent to close at 53,061.95. The S&P 500 advanced 35.16 points or 0.46 per cent to 7,666.60, while the Nasdaq Composite rose 118.05 points or 0.45 per cent to 26,217.83.

Technology stocks, including Semiconductor companies, supported the recovery, while investors continued to monitor labour market signals and Federal Reserve policy expectations. Weak private payroll data added to expectations of a softer labour market, although inflation risks stemming from higher crude oil prices remained a concern.

The U.S. 10-year Treasury yield remained elevated near 4.78 per cent, keeping pressure on global risk assets. Higher yields increase borrowing costs and can influence foreign fund allocation decisions across emerging markets.

Asian markets opened with a cautious tone. Japan’s Nikkei 225 traded higher, gaining around 0.1 per cent to 64,373.74, supported by financial and trading companies after recent bond market volatility eased.

Markets across Asia remained focused on crude oil prices, currency movements and geopolitical developments involving the U.S. and Iran. Investors also continued to track global bond yields and expectations surrounding central bank policies.

European equities faced pressure in the previous session as rising energy prices and higher bond yields increased concerns over inflation. Bond market volatility remained a key factor influencing European markets, with investors monitoring fiscal concerns and the outlook for central bank policies.

Brent crude prices remained elevated above USD 95 per barrel amid geopolitical tensions involving the Middle East. Brent crude closed around USD 95.63 per barrel after gaining nearly 1 per cent during the previous session.

Higher crude oil prices remain negative for sectors dependent on fuel costs, including aviation, paints and some consumer industries. Oil marketing companies could also face margin pressure if fuel prices remain elevated.

WTI crude traded near USD 91.73 per barrel, reflecting continued concerns over potential supply disruptions and geopolitical risks.

The Dollar Index strengthened to around 99.80, reaching its highest level since mid-August as geopolitical uncertainty increased demand for the U.S. currency.

The Indian rupee closed at 94.97 against the U.S. dollar on Wednesday. The currency remained relatively stable despite higher crude oil prices and elevated U.S. yields, supported by intervention from the Reserve Bank of India in the foreign exchange market.

Gold prices remained supported by geopolitical uncertainty, although higher bond yields and a stronger dollar limited the upside. International gold traded near USD 4,410 per ounce in recent global trade.

Foreign institutional investors remained buyers in the previous session, recording net purchases of Rs 6,688.37 crore. Domestic institutional investors were also net buyers, purchasing equities worth Rs 2,812.98 crore.

The Sensex declined 373.93 points or 0.49 per cent to close at 76,570.35, while the Nifty 50 ended lower by 141.35 points or 0.59 per cent at 23,914.45.

The Nifty 50 traded below the important 24,000 mark during the session, reflecting continued weakness after failing to sustain higher levels. India VIX increased by more than 5 per cent, indicating higher expected volatility.

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

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