Nifty 50, Sensex Decline as West Asia Supply Concerns Weigh on Market

Market Update at 12:15 PM: The Nifty 50 and the Sensex declined on Thursday as traders remained concerned about prolonged supply disruptions from the West Asia region.

As of 12:00 PM, the Sensex fell 121.61 points, or 0.17 per cent, to 72,358.68, while the Nifty 50 was down 64.15 points, or 0.28 per cent, at 22,556.70.

Bajaj Auto, Apollo Hospitals Enterprise and Max Healthcare Institute were the Top Losers in the Nifty 50 index.

In the broader markets, the Nifty MidCap index declined 0.12 per cent, while the Nifty SmallCap index fell 0.28 per cent.

Among sectors, the Nifty Auto index declined the most, while the Nifty IT index outperformed.

Market Update at 09:30 AM: The Nifty 50 and Sensex declined in early trade on Thursday as traders remained concerned about prolonged supply disruptions from the West Asia region.

As of 9:20 AM, the Sensex fell 127.09 points, or 0.18 per cent, to 72,353.20, while the Nifty 50 declined 59.45 points, or 0.26 per cent, to 22,561.00.

Bajaj Auto, Apollo Hospitals Enterprise and Max Healthcare Institute were the top losers in the Nifty 50 index. Among sectors, the Nifty Auto index declined the most, while the Nifty IT index outperformed.

In the mainboard segment, the IPOs of Nityas Gems & Jewellery and Vishal Nirmiti will enter their second day of subscription.

In the SME segment, the IPOs of TNA Solutions, Acme India Industries, Paramount Syntex, Omara Ventures India, Sollfege Smart Electronics, Eventions, SJP Ultrasonics and Dove Soft will also enter their second day of subscription.

The IPOs of EverestIMS Technologies, Vans Electroengineerings, Papadmalji Agro Foods and Black Opal Consultants will enter their final day of subscription.

Meanwhile, Moneyview and A-One Steels are scheduled to make their debut on the exchanges on Thursday.

Pre-Market Update at 7:30 AM: GIFT Nifty stood at 22,629.50 at 6:59 AM IST on October 1, indicating a cautious start for domestic equities compared with the previous Nifty 50 close of 22,620.45. The indication was just 9.05 points above the previous close, pointing to a muted opening setup after the Nifty 50 declined in the previous session.

Global cues remained mixed overnight. Softer-than-expected U.S. core inflation data offered some relief over immediate Federal Reserve tightening concerns, while elevated U.S. bond yields and crude oil prices are likely to remain key factors for global markets. Domestic institutional flows also showed a sharp contrast, with foreign investors remaining net sellers while domestic institutions continued to buy.

U.S. core personal-consumption-expenditures inflation rose 0.2 per cent in August, below market expectations. The data reduced immediate concerns over further U.S. monetary tightening, with markets pricing less than a 40 per cent probability of a Federal Reserve rate increase in October.

The development could remain relevant for export-oriented sectors, including IT, as well as financials. However, elevated longer-dated U.S. bond yields remain an important consideration for global equity valuations and investor risk appetite.

Sebi and the RBI are working to simplify foreign portfolio investor registration, KYC and documentation processes. A five-working-day FPI onboarding process has been tested for certain jurisdictions, while digital signatures, electronic powers of attorney and the use of SWIFT for registration documents are also being examined.

The proposed measures could reduce operational friction for foreign investors accessing Indian equity and debt markets over time. Capital-market intermediaries, exchanges, custodians, Banks and asset managers may remain in focus as developments emerge.

Corporate borrowing conditions are also in focus after Reliance Industries raised Rs 13,000 crore through a 10-year domestic bond issue at a 7.90 per cent coupon. The issue received bids exceeding Rs 15,000 crore against a base size of Rs 12,000 crore, including a Rs 1,000-crore greenshoe option.

The transaction takes Reliance Industries’ domestic bond borrowing in September to Rs 25,000 crore. The size and pricing of the issue provide a current indication of long-duration corporate credit appetite amid elevated global yields.

U.S. markets ended mixed in the previous session. The Dow Jones Industrial Average fell 0.86 per cent to 50,906.05, while the S&P 500 declined 0.25 per cent to 7,651.54. The Nasdaq, however, gained 0.24 per cent to close at 26,861.06.

Asian markets were broadly positive in early trade. Japan’s Nikkei rose 1.96 per cent, while the Hang Seng gained 0.37 per cent and the Shanghai Composite was up 0.31 per cent.

European equities closed lower in the previous session. The FTSE 100 declined 0.29 per cent, while Germany’s DAX and France’s CAC 40 fell 0.79 per cent and 0.89 per cent, respectively.

Brent crude was trading at USD 97.97 a barrel as of 7:00 AM IST on October 1, up 0.08 per cent. WTI crude was at USD 92.73 a barrel, down 0.44 per cent.

Crude prices near USD 98 a barrel remain relevant for India, which is a major oil importer. Energy companies, oil marketing firms and sectors with fuel as a significant input cost could remain in focus.

The Dollar Index stood at 101.49, up 0.04 per cent. The rupee traded around Rs 95.82 per U.S. dollar, showing a 0.16 per cent gain.

The U.S. 10-year Treasury yield stood at 5.30 per cent, up 0.006 percentage points. Elevated long-term yields may continue to influence global risk appetite and equity valuations.

Gold was largely unchanged at USD 4,160.76, while silver gained 0.50 per cent to USD 60.66. Precious metals may remain relevant amid movements in the dollar, bond yields and global risk conditions.

Foreign institutional investors were net sellers of Rs 10,148.41 crore in the latest available session, while domestic institutional investors were net buyers of Rs 11,271.73 crore. Domestic institutional buying more than offset the reported foreign outflow during the session.

The Nifty 50 closed 95.75 points lower, or 0.42 per cent, at 22,620.45 on September 30. The index moved between 22,595.20 and 22,809.35 during the session.

The Sensex ended 48.78 points lower, or 0.07 per cent, at 72,480.29. India VIX rose 0.60 per cent to 13.49, indicating a modest increase in expected market volatility.

Reliance Industries will remain in focus after raising Rs 13,000 crore through a 10-year domestic bond issue at a 7.90 per cent coupon. Aggregate bids exceeded Rs 15,000 crore, while the fundraising takes its September domestic bond borrowings to Rs 25,000 crore. The issue’s pricing and investor demand are relevant for the company’s funding profile.

JSW Cement has proposed to merge its listed subsidiary Shiva Cement into the company. Under the proposed share-swap arrangement, non-JSW Cement shareholders of Shiva Cement would receive five JSW Cement equity shares of face value Rs 10 each for every 41 Shiva Cement shares of face value Rs 2 held.

The transaction is expected to take 12 to 14 months, subject to regulatory, shareholder and creditor approvals. The company said the consolidation is intended to create a unified cement platform and improve integration of clinker capacity.

Shiva Cement will also remain in focus following the proposed merger with parent JSW Cement. Its public shareholders are proposed to receive five JSW Cement shares for every 41 Shiva Cement shares held under the scheme.

Shiva Cement operates a clinker facility in Odisha and commissioned a 1-million-tonne-per-annum grinding unit at Sambalpur in FY26. The announced share-swap structure remains the key corporate-action development for its shareholders.

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

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