Indian Equities Fall to Three-Month Low as Oil Nears $100, Expiry Adds Pressure

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

Amey Bane/iStockphoto.com

By Dehuti Jani

September 8, 2026 at 12:48 PM IST

Indian equities extended losses on Tuesday, with benchmark indices falling to their lowest levels since mid-June as Brent crude neared $100 a barrel amid escalating West Asia tensions. The Nifty50 fell 0.61% to 23,635.10, while the Sensex declined 0.73% to 75,577.58, marking their second consecutive session of losses. Volatility intensified during the closing auction session (CAS), the new mechanism for determining closing prices, with the Nifty's indicative close falling as much as 1.8% after the index was down 0.58% at 3:15 p.m. ahead of the auction. The index subsequently pared losses.

Brent crude rose 1.4% to $98.40 a barrel after Yemen's Iran-aligned Houthi forces said they had attacked Saudi energy facilities, intensifying concerns over prolonged disruptions to energy supplies. The third straight session of rising oil prices has increased inflation risks and weighed on investor sentiment.

HDFC Bank's indicative close fell as much as 3.91% during the auction after the stock had ended regular trading 0.91% lower, before settling 1.1% lower. SBI Life Insurance, ICICI Bank and Axis Bank were among the biggest Nifty 50 losers. Eight of the 16 major sectors declined, led by Nifty Private Bank and Financial Services, which fell 1% and 0.9%, respectively. Nifty Pharma and Healthcare outperformed, while the Nifty MidCap and SmallCap indices gained 0.21% and 0.17%, respectively.

The Indian rupee fell 0.35% to 94.8175 per US dollar, its sharpest decline since late July, as rising oil prices increased pressure on the currency. The rupee has remained under pressure as the ongoing Iran war raises concerns over sustained energy supply disruptions.

Indian government bonds ended higher as crude eased intraday and traders covered short bets. The yield on the benchmark 6.94%, 2036 bond was around 6.94.31%, as against 6.9607% from the previous close.

Top Movers of the Day

Deepa Jewellers surged 9.92% to ₹195 above its IPO price of 177 rupees. The stock extended its strong debut after the issue was subscribed 42.61 times, with heavy volumes supporting buying interest.

ESDS Software extended its post-listing rally, rising 20% to ₹1,308.05 and taking its cumulative gain to nearly 195% from its 429-rupee IPO price in three sessions, supported by strong listing momentum and heavy volumes.

Raymond gained 10.93% to ₹856.85, supported by broad buying across Raymond group counters and positive sentiment around its lifestyle and real-estate businesses. The company’s shares hit a fresh 52-week high of ₹869.05 ahead of a scheduled board meeting to consider fundraising.

Symphony climbed 5.72% to ₹606.20, supported by buying in consumer-durables stocks and expectations of steady demand for air coolers.

Hindustan Aeronautics advanced 3.79% to ₹5,039.40 after the Defence Acquisition Council approved procurement proposals worth around ₹1.10 trillion, with most of the orders to be sourced from Indian companies.

Mishra Dhatu Nigam jumped 12.15% to ₹470.90 after the Defence Acquisition Council cleared defence procurement proposals worth about ₹1.10 trillion, with nearly 98% to be sourced domestically. The approvals improved order-book visibility for defence and special-metals suppliers.

Paras Defence and Space Technologies rose 1.16% to ₹1,506.70, joining the broader defence-sector rally after the DAC approvals.

The New India Assurance fell 11.33% to around ₹205, coming under sharp selling pressure as investors booked profits in PSU insurance stocks. The company holds 1.42% stake of National Stock Exchange and investors had bought shares over the last few weeks on NSE IPO news.

IDBI Bank fell 10.50% to ₹81.22 as banking stocks faced broad selling and investors reacted to valuation concerns on Fairfax Financial Holdings’ offer of 81 rupees per share for a controlling stake.

Pfizer declined 6.34% to around ₹4,305 amid profit-taking and on an announcement by the company that it will discontinue marketing, distribution, and sale of Minipress XL in India.

Futures & Options
The Nifty September 2026 futures closed at 23,744.10, a premium of 109 points over the Nifty 50's cash-market close of 23,635.10. The Nifty fell 144.05 points, or 0.61%, during the session, while the NSE's India VIX, a gauge of expected near-term volatility, declined 0.51% to 11.10.

HDFC Bank, GE Vernova T&D India Ltd and Reliance Industries 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 higher on Tuesday as softer crude prices and slightly stronger-than-expected demand at the state bond auction prompted traders to cover short positions.

Foreign banks were likely buyers of the 10-year benchmark, supported by ample liquidity from FCNR(B) inflows. Some traders also added long positions, expecting yields to remain range-bound until the Reserve Bank of India announces further liquidity-absorption measures.

The benchmark 6.94%, 2036 bond yield eased to around 6.9431%, from 6.9607% in the previous session. The decline in yields reflected improved sentiment, although market participants remained cautious about the broader liquidity outlook and the potential timing of further RBI measures.

Forex
The Indian rupee fell 0.35% to 94.8175 per US dollar on Tuesday, marking its sharpest decline since late July as a third straight session of rising oil prices intensified pressure on the currency. Brent crude approached $100 a barrel amid escalating tensions in the Iran war and growing concerns over prolonged energy supply disruptions.

Attacks by Yemen's Iran-aligned Houthis on energy facilities in Saudi Arabia and Tehran's threat of “economic warfare” added to geopolitical risks. Dollar sales by state-run banks, likely on behalf of the Reserve Bank of India, cushioned the rupee's decline but did not appear aimed at defending a specific level.

Crypto
The cryptocurrency markets remained subdued on Tuesday, with Bitcoin trading around $78,648.66, up 1.10%, and its market capitalisation at about $1.58 trillion. Ethereum gained 0.70% to $2,475.15, while most large-cap altcoins also posted modest gains.

Investors continued to assess rising oil prices and escalating US-Iran tensions, which have kept broader risk appetite cautious. Markets are also positioning ahead of the US Senate's scheduled 15 September cloture vote on the CLARITY Act, with the regulatory milestone adding another focus for digital-asset investors.

US Stock Futures
US stock futures fell on Tuesday after the Labor Day holiday, with Dow futures down 0.9%, S&P 500 futures 0.4% and Nasdaq-100 futures 0.2%, as investors assessed renewed US-Iran hostilities and rising oil prices. Brent crude rose 2.3% to $99.22 a barrel, while WTI gained 3.3% to $94.54, after the two countries exchanged strikes over the weekend.

The rise in energy prices has revived inflation concerns and could reinforce expectations of tighter US monetary policy. Investors are also monitoring rising trade tensions between Canada and the US ahead of Tuesday's regular session.

US Treasury Notes
US Treasury note yields moved higher on Tuesday after the Labor Day holiday, as rising oil prices renewed inflation concerns and investors prepared for a series of key economic data releases. The benchmark 10-year Treasury yield rose more than three basis points to 4.80%, near recent multi-year highs, while the 30-year yield climbed to 5.27%. The two-year yield was little changed at 4.38%.

Brent crude moved closer to $100 a barrel amid escalating geopolitical tensions, adding to concerns that higher energy costs could keep inflation elevated and complicate the Federal Reserve's interest-rate outlook.

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