Indian Shares Snap Four-Day Losing Streak, Rupee Ends Steady

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

By Dehuti Jani

September 4, 2026 at 2:46 PM IST

Indian shares snapped a four-session losing streak on Friday, helped by gains in global equities and on easing concerns over a US rate hike, but benchmark indices posted their fourth consecutive weekly decline as elevated crude prices and higher bond yields weighed on sentiment.

The Nifty50 rose 0.10% to 23,897.70, while the Sensex gained 0.48% to 76,515.43. For the week, the indices fell 1.2% and 1%, respectively, marking their longest losing streak in five months.

Brent crude oil rose around 7% this week and traded above $96 a barrel on Friday as renewed US-Iran hostilities heightened concerns over supply disruptions and inflation. The rise in oil prices pushed global bond yields higher, keeping pressure on risk assets. Twelve of the 16 major sectors declined over the week. The Nifty MidCap index fell 1.5%, while the SmallCap index gained 0.1%.

On Friday, the Nifty Metal index rose more than 1% to outperform sectoral peers, while Nifty Realty declined the most. HCLTech, Bharti Airtel and Maruti Suzuki India were among the top Nifty 50 losers. In broader markets, the Nifty MidCap fell 0.25%, while the Nifty SmallCap rose 0.22%.

The Indian rupee closed steady at 94.4850 per US dollar, near an over two-month high, supported by strong dollar inflows and Reserve Bank of India intervention. Inflows mobilised through the RBI's one-off measures have topped $136 billion, exceeding market expectations and strengthening support for the currency. The rupee has gained more than 1% this week, although elevated oil prices remain a key headwind.

Indian government bonds ended steady after the market absorbed 320-billion-rupee gilt auction as traders remained cautious ahead of the weekend and focused on the possibility of further liquidity absorption measures by the RBI. The yield on the benchmark 6.94%, 2036 bond closed at 6.9625% from 6.9646% on Thursday.

Top Movers of the Day

New India Assurance jumped 18.26% to ₹23, hitting a fresh 52-week high on strong volumes. Buying was also supported by the insurer’s direct stake of around 1.5% in the NSE and investor expectations surrounding the upcoming NSE IPO.

Wockhardt rose 7.51% to ₹2,097, its strongest gain in 14 weeks, supported by heavy volumes and technical buying following a prolonged correction. Investor sentiment continued to draw strength from its net profit and expanding operational margins.

Angel One gained 4.70% to ₹299.45 after gross client additions rose 19.9% month-on-month to 0.57 million in August, triggering a sharp increase in trading volumes.

Sterlite Technologies advanced 5% to ₹748.90 after its board approved a 30-billion-rupee capital expenditure plan to expand its optical-fibre and connectivity manufacturing facility.

Adani Enterprises rose 1.43% to ₹2,942.60, extending gains amid continued buying interest in Adani group stocks after positive long-term outlook from Jefferies and Motilal Oswal Financial services.

Reliance Industries gained 2.03% to ₹1,329, supported by buying interest ahead of the planned Jio Platforms IPO and expectations of value unlocking from the digital and telecom businesses.

Bajaj Finserv fell 1% to ₹1,972, as investor sentiment took a hit following proposed draft guidelines from the RBI regarding NBFC lending rules and revolving credit restrictions.

HDFC Bank rose 1.16% to ₹714.85, leading gains among large private banks amid selective buying in financial stocks and following recent heavy sell-off that had pushed stock near its 52-week lows.

Tata Chemicals fell 2.60% to ₹624.70 after Kenya's president ordered an end to production at the company's local facility, raising concerns over operations and earnings contribution from the subsidiary.

Polycab India declined 5.5% to ₹8,317.50, tracking weakness across cable and wire stocks. The company’s shares also fell today due to UltraTech Cement’s official launch of its new wire and cable brand.

KEI Industries fell 8.77% to ₹4,860, among the top losers, as investors booked profits in the cable and wire segment following its recent strong rally.

Futures & Options
The Nifty September 2026 futures closed at 24,048, a premium of 150.30 points over the Nifty 50's cash-market close of 23,897.70. The Nifty gained 24.25 points, or 0.10%, during the session, while the NSE's India VIX, a gauge of expected near-term volatility, fell 6.50% to 10.60, indicating easing volatility expectations.

Swiggy, Reliance Industries and BSE were the most-traded individual stock futures contracts on the NSE. The September 2026 F&O contracts will expire on 29 September.

Bonds
Indian government bonds ended largely steady after the market absorbed a 320-billion-rupee gilt auction, with traders remaining cautious ahead of the weekend and watching for further RBI liquidity absorption measures. The benchmark 6.94% 2036 bond yield closed at 6.9625%, compared with 6.9646% on Thursday.

The new five-year bond carried a 6.53% coupon, with the cut-off slightly above the median market estimate. Demand was firm from banks, while insurers showed strong interest in the 7.71%, 2066 bond.

Still, traders turned cautious after the auction, taking short positions in five-year and 10-year bonds amid concerns over tighter liquidity and further monetary policy tightening. Brent crude eased towards $95 per barrel, while the 10-year US Treasury yield fell to around 4.75%. Markets continued to track overseas developments and the West Asia conflict.

Forex
The Indian rupee ended at 94.4850 per US dollar on Friday flat from Thursday’s close, holding near an over two-month high as strong dollar inflows and RBI intervention continued to support the currency.

The RBI's one-off measures have raised over $136 billion, boosting dollar liquidity and support for the rupee. Broad-based dollar weakness, including gains in the Japanese yen on increased expectations of a Bank of Japan rate hike, also supported the rupee. However, Brent crude above $96 a barrel amid renewed US-Iran hostilities remained a key headwind, while higher oil prices and US Treasury yields limited the currency's upside. The rupee gained more than 1% this week, making it one of Asia's best-performing currencies.

Crypto
The cryptocurrency markets rallied on Friday, with Bitcoin rising 4.3% to move back above $81,000 and Ethereum reclaiming the $2,500 level. The gains came amid resilient spot ETF inflows and easing expectations for interest rates, supporting demand across major digital assets. Bitcoin's latest advance capped its strongest monthly performance since November 2024, marking a notable recovery after a weak third quarter. Major altcoins also advanced alongside the broader market.

US Stock Futures
US stock futures were mixed early Friday as investors looked forward to the August payrolls report for fresh clues on the Federal Reserve’s policy outlook. Dow futures fell 0.08%, while S&P 500 futures added 0.08% and Nasdaq-100 futures gained 0.48%.

The firmer technology futures followed gains in US equities on Thursday, when all three major averages advanced as Treasury yields eased. Sentiment was supported by Fed Governor Christopher Waller indicating that he would be inclined to support keeping interest rates at the current 3.5%-3.75% target range at the September 15-16 meeting.

US Treasury
US Treasurynote yields moved back toward 4.76% on Friday after retreating from three-year highs, as markets scaled back expectations of a Federal Reserve rate hike this month following dovish comments from Fed Governor Christopher Waller. Waller said he would favour keeping rates unchanged if price pressures continue to ease, while noting that next week's inflation data would be important for his policy decision.

Markets now price a roughly 50% probability of a September rate hike, down from around 63% a day earlier. Investors are also awaiting the August jobs report for further clues on the Fed's policy path, while elevated oil prices and uncertainty over shipping through the Strait of Hormuz continue to pose inflation risks.

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