Equities end down post volatile session; rupee strengthens

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

India stocks fall, rupee fall

By Richard Fargose

September 1, 2026 at 2:12 PM IST

Indian equity indices ended marginally lower for the second consecutive session on Tuesday after a volatile day. Gains in FMCG, IT and media stocks were offset by selling in auto, banking, pharma and realty shares.

The Sensex slipped 12.99 points, or 0.02%, to close at 76,944.28, while the Nifty50 fell 24.60 points, or 0.10%, to 24,055.80. Both benchmarks recovered from intraday lows, while the rupee strengthened to a two-month high against the US dollar.

The Nifty remained resilient despite uneven sectoral trends, with gains in select heavyweight stocks offsetting broader weakness. Market breadth, however, painted a less positive picture, with the advance-decline ratio at 1:2.

Commodity-linked shares saw sharp moves as the government reduced stock-holding limits for sugar, sending sugar stocks down by as much as 6%. At the same time, Brent crude climbed above $92 per barrel, adding pressure on companies sensitive to higher energy costs. Asian Paints and BPCL fell by as much as 4%.

The aviation sector also came under pressure, with IndiGo declining nearly 4% after a rise in jet fuel prices raised concerns over higher operating costs.

In the currency market, the rupee strengthened to a two-month high, supported by Reserve Bank of India dollar-selling intervention and flow-related dollar supply, including 2.2 billion rupees of NIIF-related inflows. The gains came despite pressure from rising crude prices and higher global bond yields.

Indian government bonds weakened as crude prices extended their rise, reviving concerns over prolonged supply disruptions in West Asia. The benchmark 6.94% 2036 bond yield rose to 6.9581%, from 6.9452% on Monday, as traders trimmed positions amid rising inflation and external sector risks.

Top Movers of the day

ITC rose 4.64% to ₹267.35, leading the Nifty 50 gainers. The stock was supported by strong volume buying and its defensive FMCG profile, as investors rotated into staples amid geopolitical and crude‑led volatility.

HCL Technologies gained 3.44% to around ₹1,353–1,366, as IT stocks extended their recent recovery on value buying and lower global bond yields. The counter was among the top Nifty gainers, tracking sectoral strength rather than a fresh company‑specific announcement.

Adani Ports and Special Economic Zone advanced 3.39% to ₹1,645.10, with volumes spiking sharply. The stock was supported by continued buying in Adani group counters and positive sentiment around the conglomerate’s port and logistics businesses.

Bharti Airtel rose 2.98% to around ₹1,866–1,871, helped by strength in the telecom segment and selective FII buying. The stock was among the notable gainers in the Nifty 50, although no major new company announcement was reported for the day.

Tribhovandas Bhimji Zaveri shares surged 20% to a 52-week high after GRT Jewellers agreed to acquire a 74.12% stake in the company for up to ₹10.34 billion and launch an open offer for an additional stake.

Milky Mist Dairy Food shares jumped nearly 10% after the company reported a ten-fold year-on-year rise in first-quarter consolidated profit to 647 million rupees, while revenue grew 43.6% to ₹9.73 billion.

HEG shares hit a fresh 52-week high of ₹753.90 during the session, extending gains amid strong buying interest.

Mphasis shares gained more than 3% amid heavy trading volumes, emerging as one of the stronger performers in the technology pack.

Jindal Stainless shares rose nearly 4%, leading gains among Nifty Midcap 150 stocks, while Persistent Systems and Info Edge also advanced.

Maruti Suzuki shares fell more than 4%, while Hyundai Motor India, Ashok Leyland and TVS Motor also declined sharply as auto stocks came under broad selling pressure.

Futures & Options
Nifty September 2026 futures settled at 24,081, a premium of 25.2 points to the Nifty 50’s cash close of 24,055.80. The Nifty 50 was nearly flat, slipping 24.60 points, or 0.01%. India VIX rose 0.49% to 11.25. HDFC Bank, Reliance Industries and Maruti Suzuki India were the most actively traded stock futures.

Bonds
Indian government bonds fell as crude oil prices climbed further during the day, reviving fears of prolonged supply disruptions in West Asia and pushing traders to trim bond holdings.

The benchmark 6.94%, 2036 bond ended at 6.9581%, up from 6.9452% on Monday.

Brent crude rose over 2% to above $92 a barrel, fuelling concerns that oil prices could move towards the psychologically crucial $95 mark if tensions in West Asia persist.

Forex
The Indian rupee strengthened on Tuesday to close at a two-month high, supported by Reserve Bank of India dollar-selling intervention and flow-related dollar supply, including 2.2 billion rupees of NIIF-related inflows. These factors outweighed pressure from higher crude prices and rising global bond yields.

The rupee settled at 94.9500 per dollar, compared with 95.1625 per dollar on Monday. In the interbank market, it opened at 95.0000 per dollar, rose to an intraday high of 94.7925, and later eased to a low of 95.1100.

Crypto
Cryptocurrency prices consolidated on Tuesday after the recent rally stalled amid renewed West Asia tensions. Bitcoin hovered above the key $78,000 support level, whileEthereum and XRP held above $2,400 and $1.35, respectively, keeping the near-term outlook neutral to mildly bullish.

Risk appetite remained resilient, with the Fear and Greed Index rising to 69 from 62 in the previous session, signalling improving market sentiment.

US Stock Futures
US stock futures fell on Tuesday as inflation concerns and elevated oil prices pushed bond yields higher, raising fresh uncertainty over the Federal Reserve’s policy outlook. Dow futures dropped 0.5%, while S&P 500 futures also fell 0.5% and Nasdaq-100 futures declined nearly 1%. Technology stocks led the weakness, with Nvidia, AMD and Micron down more than 1%.

US Treasury Notes
The global government bond sell-off intensified on Tuesday as renewed clashes in West Asia lifted oil prices and heightened inflation concerns. Japan’s 10-year yield reached 3% for the first time in a generation, while the 10-year US Treasury yield rose to 4.78%, its highest since early 2025. French and German bond futures extended their decline, pushing yields to 15-year highs, while Australia’s 10-year yield recorded its sharpest rise in five months.

Top News