Nifty 50 Down 0.59% as Rising Crude Oil Prices, U.S.-Iran Tensions Weigh on Sentiment

Market Update at 12:40 PM: The Nifty 50 and the Sensex declined in afternoon trade as rising oil prices raised concerns over the inflation outlook amid simmering tensions between the U.S. and Iran.

As of 12:32 PM on September 7, 2026, the Nifty 50 fell 139.95 points, or 0.59 per cent, to 23,757.75. The Sensex declined 422.03 points, or 0.55 per cent, to 76,093.40.

Infosys, Tech Mahindra and Bajaj Auto were the Top Losers in the Nifty 50 index, weighing on market sentiment.

In the broader markets, the Nifty MidCap index fell 0.15 per cent, while the Nifty SmallCap index rose 0.24 per cent, indicating mixed performance across the broader market.

Sector-wise, the Nifty IT, Nifty Realty and Nifty PSU Bank indices fell the most. Meanwhile, the Nifty Pharma and Nifty Healthcare indices were the Top Gainers.

Market Update at 10:50 PM: Indian shares declined on Monday, September 7, extending pressure after the benchmark indices recorded four consecutive weekly declines. Rising tensions in the Middle East and increasing expectations of a U.S. interest rate hike in September weighed on investor sentiment, while IT stocks led a broad-based selloff.

The Nifty 50 fell 0.40 per cent to 23,800.95, down 96.75 points, while the BSE Sensex declined 0.40 per cent to 76,209.08, down 306.35 points, as of 10:43 a.m. IST. As many as 14 of the 16 major sectoral indices were trading in the red.

The Nifty IT index declined around 2 per cent after stronger-than-expected U.S. jobs data increased expectations of a September rate hike by the U.S. Federal Reserve. Higher U.S. interest rates could pressure client spending and weigh on Indian IT companies, which derive a significant portion of their revenue from the U.S. market.

Broader markets also remained under pressure, with the Nifty Smallcap 100 and Nifty Midcap 100 indices declining around 0.2 per cent each. Rising crude oil prices and renewed U.S.-Iran tensions further dented risk appetite.

The U.S.-Iran situation will also remain a key market factor, as renewed tensions could push crude oil prices higher. Meanwhile, a record number of IPOs hitting the market could keep liquidity and investor attention away from the secondary market.

Among individual stocks, Zee Entertainment fell around 4 per cent after India's premier investigating agency filed an FIR against Essel Group Chairman Subhash Chandra and others over alleged fraud involving LIC Housing Finance.

Indoco Remedies declined around 3 per cent after the U.S. drug regulator completed an inspection at the company's Goa manufacturing facility and issued seven Form 483 observations. Such observations flag conditions that may not comply with U.S. regulatory standards.

PVR Inox dropped 6.5 per cent after an Economic Times report said the multiplex operator asked a senior executive to leave in April following an internal investigation into alleged kickbacks from developers involved in building its cinema properties.

Market Update at 09:30 AM: Indian benchmark equity indices opened lower on Monday, September 7, as rising oil prices raised concerns over the inflation outlook amid simmering tensions between the U.S. and Iran.

As of 9:20 AM, the Sensex declined 133.65 points, or 0.17 per cent, to 76,381.78, while the Nifty 50 fell 47.30 points, or 0.20 per cent, to 23,850.40.

Infosys, Tech Mahindra and Bajaj Auto were the top losers on the Nifty 50 index in early trade.

In the broader market, the Nifty MidCap index declined 0.17 per cent, while the Nifty SmallCap index fell 0.22 per cent, indicating a mildly negative trend across broader equities.

Among sectors, the Nifty IT index declined the most, while the Nifty Pharma index emerged as the top gainer in early trade.

Pre-Market Update at 7:40 AM: Indian benchmark indices are likely to open lower on Monday, September 7, as GIFT Nifty signals a weak start amid surging crude oil prices and escalating tensions between the U.S. and Iran. At around 7:10 AM, GIFT Nifty was trading near 23,977.5, indicating a discount of around 33 points against the previous close.

The domestic market ended mixed in the previous session. The Sensex gained 362.57 points, or 0.48 per cent, to 76,515.43, while the Nifty 50 declined 24.25 points, or 0.10 per cent, to 23,897.70. The India VIX fell 5.8 per cent to 10.68, indicating subdued near-term volatility.

The NSE has revised its 15-minute pre-open session from September 7, while keeping the overall 9:00 AM–9:15 AM timing unchanged. Under the revised framework, the order-entry period will be divided into phases.

From 9:00 AM to 9:05 AM, both limit and market orders will be allowed. From 9:05 AM to 9:10 AM, only limit orders will be permitted. Order matching and trade confirmation will take place between 9:10 AM and 9:12 AM, followed by a three-minute buffer before regular trading begins.

The changes apply across the equity cash segment, including main-board stocks, SME shares, REITs, InvITs and partially paid-up shares. The revised mechanism is aimed at improving price discovery and aligning the pre-open session with the new Closing Auction Session framework.

Crude oil prices have emerged as the biggest risk for Indian equities following fresh escalation in the Middle East. Brent crude climbed to around USD 96.80 per barrel, while WTI crude rose to about USD 92.14 after retaliatory attacks involving the U.S. and Iran near the Strait of Hormuz.

The Strait of Hormuz handles roughly one-fifth of global oil transit, making any prolonged disruption a major concern for global energy markets. For India, sustained higher crude prices could increase the import bill, put pressure on the rupee and raise inflation and input-cost concerns. This could particularly weigh on oil-sensitive sectors and limit the upside in domestic equities.

Despite the negative GIFT Nifty signal, Asian markets opened strongly on Monday. Japan's Nikkei 225 gained nearly 2 per cent, while South Korea's Kospi advanced more than 3 per cent. Strength in Asian equities could provide some cushion to Indian markets during the opening session.

However, positive regional cues may be offset by rising energy prices and geopolitical risks. Investors are likely to remain cautious until there is greater clarity on developments around the Strait of Hormuz.

Wall Street ended lower on Friday after a stronger-than-expected U.S. employment report increased expectations that the Federal Reserve could maintain a hawkish stance.

The U.S. economy added 162,000 jobs in August, above expectations, while the unemployment rate remained at 4.1 per cent. Following the data, the Dow Jones declined 0.51 per cent, the S&P 500 fell 0.38 per cent and the Nasdaq Composite dropped 0.29 per cent. The U.S. 2-year Treasury yield also climbed to 4.37 per cent.

The stronger labour market has increased uncertainty around the Federal Reserve's interest-rate trajectory and could keep global equities under pressure.

Investors will closely monitor U.S. CPI inflation data due later this week for fresh clues on the Federal Reserve's interest-rate trajectory. The inflation reading could influence U.S. Treasury yields, the dollar and global risk appetite.

U.S. PPI data is scheduled for Thursday, followed by CPI inflation data on Friday, making the second half of the week particularly important for global markets.

Foreign portfolio investors remained sellers in the Indian equity market on Friday, recording net selling of Rs 3,112 crore. Domestic institutional investors provided strong support, with net purchases of Rs 8,920 crore.

The divergence between foreign and domestic institutional flows will remain an important market factor, particularly if elevated crude oil prices trigger further risk-off positioning among foreign investors.

The Indian rupee gained around 0.9 per cent last week, helped by dollar selling by the Reserve Bank of India and inflows through special schemes. However, rising crude oil prices and higher U.S. yields could put renewed pressure on the currency this week.

The 10-year Indian government bond yield ended last week at around 6.9625 per cent after rising for a third consecutive week, highlighting continued pressure in the domestic bond market.

From a technical perspective, the Nifty 50 remains below its 50-EMA on the hourly chart, keeping the short-term trend weak. The 24,000–24,200 zone is likely to act as an important resistance area.

On the downside, immediate support is seen around 23,830, followed by 23,700. A sustained move above 24,200 could improve the short-term structure, while a break below 23,830 may increase selling pressure.

GIFT Nifty is around 23,977, signalling a weak opening, while the Nifty 50's previous close stands at 23,897.70. The India VIX is at 10.68, Brent crude is around USD 96.80 per barrel and WTI crude is around USD 92.14 per barrel.

FII selling of Rs 3,112 crore and DII buying of Rs 8,920 crore will also remain in focus. Technically, Nifty 50 support is placed at 23,830 and 23,700, while resistance is seen in the 24,000–24,200 zone.

The revised NSE pre-open session rules will also take effect from September 7, with the 9:00 AM–9:15 AM session now divided into separate order-entry, matching and buffer phases.

The key global triggers include U.S. CPI inflation data later this week, while U.S.-Iran tensions and potential disruption around the Strait of Hormuz remain the major risks for global markets.

Overall, Indian equities are likely to begin Monday's session on a cautious-to-negative note. Strong Asian markets may provide some support, but the sharp rise in crude oil prices, geopolitical tensions and uncertainty over the Federal Reserve's policy stance could cap gains.

The Nifty 50's ability to hold the 23,830 support zone will be important for determining the near-term market direction. A sustained break below this level could increase selling pressure, while a move above 24,200 would improve the short-term setup.

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

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