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Key gauges end lower for 3rd straight day amid West Asia tensions
Sep-09-2026

Indian equity benchmarks ended lower for the third straight day on Wednesday, with the Sensex tumbling 813.35 points and the Nifty dropping below 23,450 mark, as rising crude oil prices, a weaker rupee and continued foreign fund outflows weighed on investor sentiment. The escalation of tensions between the US and Iran in the Persian Gulf region added to concerns about global energy supplies and kept investors cautious. 

Both Sensex and Nifty closed in negative territory, but the indices showed a divergence in losses. The BSE Sensex ended with losses of over a percent amid broad-based selling in heavyweight stocks. IT stocks remained the biggest drag, with TECK and Realty also under pressure. Metal and Utilities stocks bucked the trend. Similarly, the Nifty 50 ended with losses of over 0.80% as escalating tensions in West Asia drove crude oil to over $100 per barrel. 

Some of the important factors in trade:

Weak monsoon raises fresh risks for rabi crops: Crisil Ratings in its report has said that Rainfall Distortion Index (RDI) records a deficiency score of 14.4 as of September 4, 2026 making this the most spatially distorted monsoon in a decade. In the same period last year RDI recorded a surplus score of 18.7. 

India needs services export diversification for sustainable growth: Commerce Secretary Rajesh Agarwal said the Indian industry needs to diversify its services exports beyond the two dominant segments of IT/ITeS and professional services to achieve sustainable growth. 

Green power capacity in cement sector to touch 5.8-6.0 GW by March 2028: The green energy transition is likely to gain momentum in India’s cement sector, with rating agency, ICRA in its latest report forecasting India’s major cement producers to significantly scale up green power capacity to 5.8-6.0 GW by March 2028, from around 4.0 GW as of March 2026.  

Auto stocks remain in watch: Federation of Automobile Dealers Associations (FADA) has said that India’s electric vehicle (EV) retail sales increased 52.9 per cent year-on-year to 2,98,448 units in August 2026. It said overall EV market penetration expanded to 12.3 per cent during the month, up from 9.5 per cent in August 2025. 

Global front: European markets were trading lower as investors seemed reluctant to indulge in any significant buying ahead of the European Central Bank's monetary policy announcement due on Thursday. Asian markets ended mixed as tensions escalated in the Middle East following another round of strikes on energy infrastructure. 

Finally, the BSE Sensex fell 813.35 points or 1.08% to 74,764.23 and the CNX Nifty was down by 203.60 points or 0.86% to 23,431.50.   

The BSE Sensex touched high and low of 75,251.23 and 74,764.23, respectively. There were 6 stocks advancing against 24 stocks declining on the index.            

The top gaining sectoral indices on the BSE were Metal up by 1.88%, Utilities up by 1.11%, Power up by 0.89%, Basic Materials up by 0.69% and Energy up by 0.17%, while IT down by 3.21%, TECK down by 2.51%, Realty down by 2.01%, FMCG down by 0.89% and Bankex down by 0.74% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 3.67%, Tata Steel up by 2.42%, Trent up by 1.12%, NTPC up by 0.53% and Asian Paints up by 0.08%. On the flip side, HCL Technologies down by 4.55%, Infosys down by 4.43%, Tech Mahindra down by 3.87%, TCS down by 2.26% and HDFC Bank down by 2.23% were the top losers.

Meanwhile, Crisil Ratings in its report has said that Rainfall Distortion Index (RDI) records a deficiency score of 14.4 as of September 4, 2026 making this the most spatially distorted monsoon in a decade. In the same period last year RDI recorded a surplus score of 18.7. Crisil’s RDI confirms a highly uneven spatial distribution of rainfall across kharif-growing regions, making this the most distorted monsoon in a decade. However, the distortion remains somewhat lower than in 2014 and 2015, when rainfall deficiencies were broadly comparable. It noted that September is forecast to witness below-normal rainfall. Although sowing has progressed well, it does not mean the crop sector is out of danger. The focus of concern has shifted from acreage to yields, and crop incomes are likely to moderate as a result.

The renewed weakening in rainfall during August, coupled with expectations of a deficient September, could pose risks to the upcoming rabi season. If rainfall deficits persist, weather anomalies, including elevated temperatures, could extend into the winter cropping season, weakening the buffers that have so far helped support rural incomes and demand.

Rabi crops are sown after the southwest monsoon recedes. While the northeast monsoon supports some rain-fed cultivation, a significant part of rabi production depends on the soil moisture, groundwater, reservoir levels and irrigation resources replenished during the southwest monsoon. The rabi season accounts for roughly half of India’s foodgrain production. Wheat constitutes about 70% of rabi output, while rice, coarse cereals and pulses account for around 10% each. More than 60% of pulse production, largely gram, and nearly 70% of jowar cultivation take place during this season, making rabi crop prospects critical for agricultural output and food security.

CNX Nifty touched high and low of 23,571.55 and 23,431.50, respectively. There were 13 stocks advancing against 36 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Adani Enterprises up by 5.13%, Max Healthcare up by 4.48%, Adani Ports &SEZ up by 3.80%, Coal India up by 2.56% and Tata Steel up by 2.50%. On the flip side, Infosys down by 4.34%, HDFC Life Insurance down by 3.71%, HCL Technologies down by 3.70%, Tech Mahindra down by 3.27% and Wipro down by 2.62% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 103.38 points or 0.96% to 10,708.28, France’s CAC fell 152.88 points or 1.84% to 8,165.10 and Germany’s DAX lost 396.63 points or 1.53% to 25,611.00.

Asian markets ended mixed on Wednesday ahead of US inflation data due later in the week which could offer additional clues on the Federal Reserve's interest rate trajectory. Investors also remained cautious as the Middle East conflict escalated and Brent crude prices surged above $100 per barrel following Houthi attacks on Saudi infrastructure and continuing strikes in the Strait of Hormuz. Japanese markets declined as the Japanese yen extended its rally to hit its highest level against the US dollar in nearly seven months. However, Chinese markets rose after data showed China's consumer-price index rose 0.8% in August from a year earlier, versus a 0.5% increase in July, while producer prices rose 3.8% year-on-year, up from a 3.5% increase in July driven partly by higher food and energy costs. Further, South Korea’s KOSPI traded higher amid renewed strength in semiconductor and AI-related shares.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,951.51

10.96

0.28

Hang Seng

25,274.96

-42.22

-0.17

Jakarta Composite

6,678.20

-8.24

-0.12

KLSE Composite

1,714.34

-0.06

0.00

Nikkei 225

65,142.78

-126.55

-0.19

Straits Times

5,729.63

-37.82

-0.66

KOSPI Composite

7,051.64

97.12

1.40

Taiwan Weighted

47,183.36

77.58

0.16
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