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EQUITY
Key gauges end lower; IT counters face selling pressure
Sep-22-2026

Indian equity benchmarks failed to hold their opening gains and ended lower on Tuesday as selling in Capital Goods and IT stocks offset relief from falling crude oil prices and positive global cues. Traders remained cautious as exchange data showed foreign institutional investors (FIIs) turned net sellers on Monday, offloading equities worth Rs 576.20 crore. Investors also remained on sidelines ahead of potential US-Iran diplomatic talks at the UN General Assembly this week.

Some of the important factors in trade: 

Nine key infrastructure sectors’ output growth slows to 4.8% in August: The Ministry of Commerce & Industry in its latest data has showed that nine key infrastructure sectors’ output growth slowed down to 4.8 per cent in August 2026 due to a fall in the output of coal, natural gas, crude oil, and fertiliser. 

India-Canada CEPA negotiations gain momentum, next round on October 5: With an aim to fast-track process of trade agreement, Commerce and Industry Minister Piyush Goyal has said that the negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between India and Canada are progressing and the next round of talks will be held from October 5, 2026. 

RBI accepts Rs 25,000 crore bids in second tranche of OMO sale: In the second tranche of its open market operation (OMO) sale of government securities, the Reserve Bank of India (RBI) has accepted bids worth Rs 25,000 crore, as it stepped up efforts to absorb surplus liquidity from the banking system. 

Domestic steel demand offers ample headroom for domestic players to sell locally: Indian Steel Association President Naveen Jindal has noted that India's lower per capita steel consumption compared to the global average leaves ample headroom for domestic output to be absorbed locally.

Global front: European markets were trading higher amid easing inflation concerns and hopes of a resumption in U.S.-Iran negotiations. Asian markets settled mostly higher, with falling oil prices and softening U.S. Treasury yields helping underpin sentiment.

Finally, the BSE Sensex fell 329.91 points or 0.44% to 74,529.08 and the CNX Nifty was down by 85.30 points or 0.36% to 23,329.00.       

The BSE Sensex touched high and low of 75,038.93 and 74,423.71, 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 1.01%, Realty up by 0.84%, Consumer Disc up by 0.38% and Energy up by 0.08%, while Capital Goods down by 0.87%, IT down by 0.79%, FMCG down by 0.68%, TECK down by 0.68% and Healthcare down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 1.94%, Interglobe Aviation up by 1.58%, Titan Company up by 0.72%, Tata Steel up by 0.60% and NTPC up by 0.15%. On the flip side, Bajaj Finserv down by 1.62%, Trent down by 1.47%, Bajaj Finance down by 1.46%, Sun Pharma down by 1.28% and TCS down by 1.13% were the top losers.

Meanwhile, in the second tranche of its open market operation (OMO) sale of government securities, the Reserve Bank of India (RBI) has accepted bids worth Rs 25,000 crore, as it stepped up efforts to absorb surplus liquidity from the banking system. The RBI accepted Rs 11,512 crore of the 6.10 per cent GS 2031, Rs 8,758 crore of the 7.95 per cent GS 2032, Rs 2,300 crore of the 6.75 per cent GS 2029, Rs 2,250 crore of the 7.17 per cent GS 2030, and Rs 180 crore of the 7.17 per cent GS 2028.

However, the RBI did not accept any bids for the 8.28 per cent GS 2027. The OMO sale comes amid a large liquidity surplus in the banking system. According to the RBI data, liquidity surplus was estimated around Rs 6.05 lakh crore as of September 20. Under an OMO sale, banks and other investors pay the RBI for the government securities, thereby draining rupee liquidity from the banking system.  The RBI had announced OMO sales worth a total of Rs 1 lakh crore in three tranches - Rs 50,000 crore on September 17, followed by Rs 25,000 crore on September 21. The remaining last tranches of Rs 25,000 crore is scheduled for September 28. 

The banking system was flushed with liquidity due to heavy mobilisation of FCNR (B) deposits by banks, as the mobilisation brought foreign currency into the system, while subsequent swaps with the RBI provided rupee liquidity to banks. Besides FCNR(B) inflows, month-end government expenditure, including payments toward salaries and pensions, also added to liquidity in the banking system.

CNX Nifty touched high and low of 23,489.00 and 23,285.75, respectively. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.21%, Eternal up by 1.82%, Interglobe Aviation up by 1.80%, Titan Company up by 1.10% and Dr. Reddy's Labs. up by 1.06%. On the flip side, Tata Consumer Products down by 1.65%, Nestle India down by 1.52%, Bajaj Finserv down by 1.43%, Bajaj Finance down by 1.22% and Sun Pharma down by 1.20% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 11.97 points or 0.11% to 10,750.98, France’s CAC rose 31.26 points or 0.38% to 8,170.20 and Germany’s DAX gained 110.99 points or 0.43% to 25,686.00.

Asian markets settled mostly higher on Tuesday tracking overnight gains on Wall Street fuelled by a rally in artificial intelligence-related stocks, while falling Brent crude prices and lower US Treasury yields also supported market sentiment. Market sentiments improved further amid rising expectation of a diplomatic solution to the US-Iran conflict ahead of closely watched United Nations General Assembly talks in New York. Meanwhile, market participants awaited speeches from Fed officials John Williams and Tom Barkin scheduled later today, for more interest rate related cues. Chinese markets inched up amid optimism over high-level US-China trade and AI talks ahead of the upcoming Trump-Xi summit in the United States. Japanese markets were closed for an extended holiday and trading will resume on Thursday. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,952.13

2.22

0.06

Hang Seng

25,087.75

45.04

0.18

Jakarta Composite

6,277.04

-107.69

-1.72

KLSE Composite

1,683.50

16.56

0.99

Nikkei 225

--

--

--

Straits Times

5,723.76

48.53

0.86

KOSPI Composite

7,017.91

10.19

0.15

Taiwan Weighted

47,800.17

81.33

0.17
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