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Key gauges end lower; IT stocks drag
Sep-07-2026

Indian equity benchmarks ended lower on Monday as elevated crude oil prices, escalating US-Iran hostilities and concerns over a possible US interest rate hike weighed on investor sentiment. Continued foreign outflows also added pressure to Indian equities. Foreign institutional investors (FIIs) remained net sellers for a second consecutive session, offloading equities worth Rs 3,111.94 crore on Friday.

Both Sensex and Nifty traded negative throughout the session and ended lower with losses of half percent each amid broad-based selling in heavyweight stocks. IT stocks came under sharp selling pressure, declining over 2 percent, with Infosys and Tech Mahindra among the major laggards. However, relative strength in telecom stocks provided some cushion against the broader selling. 

Some of the important factors in trade:

India-EU FTA unlocks growth opportunities for farmers, MSMEs, businesses: Commerce and Industry Minister Piyush Goyal has highlighted the transformative opportunities offered by the India- European Union (EU) Free Trade Agreement (FTA) for businesses and stakeholders across India and Europe, noting that the agreement would benefit farmers, fishermen, MSMEs, small industries, innovators, startups, women entrepreneurs, manufacturers and service providers.  

RBI mops up Rs 6.02 lakh crore thorough two VRRR auctions amid record banking system surplus: The Reserve Bank of India (RBI) has absorbed over Rs 6.02 lakh crore from the banking system through two variable rate reverse repo (VRRR) auctions as surplus liquidity remained at a record high. 

Goyal calls for making pharma sector more attractive for investments in clinical trials, R&D: Commerce and Industry Minister Piyush Goyal has called for making the pharmaceutical sector more attractive for investments in clinical trials, patenting products, conducting research and development (R&D) and introducing new products in India. 

Auto stocks remain in watch: Federation of Automobile Dealers Associations (FADA) has said that the Automobile retail sales in India increased by 17.51% to a record 24,23,201 units in August 2026 from 20,62,038 units in the same period last year. 

Global front: European markets were trading mostly in red, while Asian markets ended mixed as investors kept a close eye on the situation in the Middle East after the U.S. and Iran exchanged fire in the contested waters of the Strait of Hormuz over the weekend, fueling concerns over prolonged disruption to energy supplies.

Finally, the BSE Sensex fell 382.62 points or 0.50% to 76,132.81 and the CNX Nifty was down by 118.55 points or 0.50% to 23,779.15.   

The BSE Sensex touched high and low of 76,477.19 and 75,970.52, respectively. There were 7 stocks advancing against 23 stocks declining on the index.            

The top gaining sectoral indices on the BSE were Telecom up by 1.57%, Healthcare up by 0.71%, Industrials up by 0.12% and Auto up by 0.03%, while IT down by 2.11%, Realty down by 1.45%, Metal down by 1.36%, TECK down by 1.15% and Basic Materials down by 0.83% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 0.61%, Bharti Airtel up by 0.60%, Maruti Suzuki India up by 0.47%, Power Grid up by 0.36% and ICICI Bank up by 0.35%. On the flip side, Infosys down by 3.81%, Tech Mahindra down by 1.96%, Tata Steel down by 1.85%, Bajaj Finserv down by 1.57% and Ultratech Cement down by 1.41% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has called for making the pharmaceutical sector more attractive for investments in clinical trials, patenting products, conducting research and development (R&D) and introducing new products in India. He urged domestic regulators to look at global practices and adopt best practices. He also emphasized developing resilient supply chains to avoid dependence on single geographies for necessary imports.  

On investments, the minister said there was a need to keep an open mind and move away from a protective approach, as such practices were no longer relevant. He asked the domestic regulators to study regulations of developed countries, take a cue from what is happening in the world. He said ‘and look at your own regulations for more regulatory convergence with the developed world because unless our mindset and thoughts are aligned with the developed world, India cannot aim to become a developed country for 2047.’ He also said ‘we need to hear the investors who want to come to India, hear the demand of governments globally and together craft out a new pathway for success of the industry in the years to come’. 

He further said the whole world is now looking for resilience as countries are not comfortable if a country or company is dependent on one or two geographies or if a supply chain has a potential threat of being weaponised which could hurt the entire industry. He said ‘we have lost out on APIs (Active Pharmaceutical Ingredients) and KSMs (key starting materials) and all... but now is the time to get back by resilience.’ He added that now developing countries like India are competing with rich countries in attracting investments, besides goods and services. He said ‘look at the US, Canada, Mexico, Japan, Korea, Singapore, all of Europe, they are trying to attract investments in their geographies, adding that gone are the days when only developing countries like India were attracting investments.’ He also suggested that the pharma industry consider investing in other countries, as it now needs a global outlook.  

CNX Nifty touched high and low of 23,890.00 and 23,737.90, respectively. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 1.27%, Larsen & Toubro up by 0.88%, Coal India up by 0.84%, Bharti Airtel up by 0.76% and Max Healthcare up by 0.73%. On the flip side, Infosys down by 3.76%, HDFC Life Insurance down by 2.42%, SBI Life Insurance down by 2.42%, JIO Financial Services down by 2.13% and Tech Mahindra down by 2.06% were the top losers.   

European markets were trading mostly in red; France’s CAC fell 0.47 points or 0.01% to 8,278.30 and Germany’s DAX lost 94 points or 0.36% to 25,952.40, while UK’s FTSE 100 increased 10.43 points or 0.1% to 10,841.52.

Asian markets ended mixed on Monday, as investors cautiously watched the situation in the Middle East after the US and Iran exchanged fire in the contested waters of the Strait of Hormuz over the weekend, fuelling concerns over prolonged disruption to energy supplies. Besides, expectations of an interest-rate hike at the upcoming Federal Reserve policy meeting after a stronger-than-expected August US nonfarm payrolls report kept market under pressure. Meanwhile, South Korea’s Kospi gained more than 4%, led by a sharp rebound in semiconductor shares as OpenAI’s release of its next-generation large language model GPT-6 Astra revived expectations for stronger spending on AI infrastructure.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,932.70

2.58

0.07

Hang Seng

25,413.12

-237.75

-0.93

Jakarta Composite

6,619.67

-16.81

-0.25

KLSE Composite

1,714.79

6.69

0.39

Nikkei 225

66,399.84

1,378.90

2.12

Straits Times

5,792.28

-9.68

-0.17

KOSPI Composite

6,995.39

308.18

4.61

Taiwan Weighted

47,326.27

775.14

1.67
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