Equities Pare Losses as Oil Prices Ease; Rupee Ends Weak

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

iStock.com

By Dehuti Jani

September 11, 2026 at 1:02 PM IST

Indian benchmark equity indices recovered sharply from their intraday lows on Friday as easing crude oil prices and bond yields helped offset the weakness across global equities. The Sensex ended down 120.83 points, or 0.16%, at 74,781.76, while the Nifty50 declined 79.70 points, or 0.34%, to 23,398.10. Both indices had fallen around 1% in morning trade and later recovered most losses as a report on efforts to reach a temporary US-Iran deal eased concerns over prolonged energy supply disruptions.

The rebound was supported by gains in IT, FMCG and banking stocks, with Nifty Private Bank and Nifty IT among the best-performing sectors. Hindalco Industries, JSW Steel and Tata Steel were the top Nifty 50 gainers. Nifty Realty and Nifty Metal declined the most. In broader markets, the Nifty MidCap and SmallCap indices fell 0.26% and 0.58%, respectively, indicating continued weakness in market breadth.

The market recovery from its intraday lows was supported by value buying in select sectors, particularly IT, but weak breadth suggested that the recent corrective trend remained intact.

Indian government bonds ended sharply lower on Friday as higher global yields and expectations of further RBI liquidity absorption weighed on sentiment. The benchmark 6.94%, 2036 bond yield rose around 5 bps to 7.0233%, its highest since June 3. Traders turned cautious ahead of the long weekend, with some expecting a 400–500 billion rupee OMO sale announcement after market hours.

The Indian rupee fell 0.1% to 95.55 per US dollar, weakening for the fourth consecutive session. The currency declined 1.1% this week, its sharpest weekly fall since mid-May, weighed by higher oil prices and global bond yields, despite the Reserve Bank of India’s interventions.

Top Movers of the Day

Raymond surged 17.5% to ₹1,003 after the company approved raising ₹2.15 billion through a preferential issue of convertible warrants to Minerva Venture Fund. The shares had rallied 20% intraday to hit an all-time high of ₹1,024.50 today.

Davangere Sugar jumped 9.9% to around ₹2.10 on volumes more than 20 times its recent average, tracking strong momentum across sugar stocks amid optimism over higher government backed ethanol blending mandates.

Yes Bank rose 5.9% to ₹23.62, with more than 180 million shares changing hands, as the stock benefited from strong financial results showing a 33.69% year-on-year rise in standalone net profit.

Sun TV Network gained 4.3% to ₹475, leading media stocks higher on selective buying in broadcasters and regional-media companies. The stock has recently fallen to its 52-week low but rebounded today on value buying by investors at lower levels.

Paytm rose as much as 4.5% to around ₹1,817 after Bernstein named the stock its top pick, citing merchant-lending growth, operating leverage and potential UPI monetisation.

Canara Bank fell close to 1% today to ₹123.50 after announcing plans to raise up to $2 billion through overseas bonds under its medium-term note programme, although the stock traded mixed amid broader pressure on banks.

HDFC Bank rose 2.12% to around ₹708.50, bouncing back from an intraday low of 681.90 rupees due to a late session short-covering rally and winning Credit Suisse AT1 bond cases in Bahrain.

Tata Steel declined 2.3% to ₹182.58, tracking weakness across metal stocks as higher oil prices, a stronger dollar and elevated bond yields weighed on sentiment.

National Aluminium Company fell 3% to ₹362.20, leading metal-sector losers as higher crude prices and bond yields pressured commodity stocks.

Heidelbergcement India dropped 5.3% to ₹150.40 amid profit-taking, combination of lower realisations, compressed margins from rising input costs, and broader selling in cement stocks during a volatile session.

Futures & Options
The Nifty September 2026 futures closed at 23,499, a premium of 100.90 points over the Nifty 50's cash-market close of 23,398.10. The Nifty fell 79.70 points, or 0.34%, during the session, while the NSE's India VIX, a gauge of expected near-term volatility, rose 4% to 12.27.

HDFC Bank, BSE and LIC Housing Finance 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 sharply lower on Friday as rising global yields and expectations of further liquidity absorption by the Reserve Bank of India weighed on sentiment. The benchmark 6.94%, 2036 bond yield rose 4.7 bps to 7.0233%, from 6.9762% on Thursday, marking its highest level since June 3.

Traders remained cautious ahead of the long weekend and amid concerns that the RBI could announce a 400–500 billion rupee open market operation sale after the market hours. The banking-system liquidity surplus has already risen above 10 trillion rupees, increasing expectations of further liquidity-mop-up measures.

Higher US producer inflation and stronger economic data also pushed global bond yields higher and reinforced expectations of tighter monetary policy. The rise in overseas yields, coupled with continued foreign investor outflows, added to pressure on domestic gilts. Some traders increased short positions ahead of the weekend, limiting demand for bonds.

Forex
The Indian rupee fell 0.1% to 95.55 per US dollar on Friday, weakening for a fourth consecutive session and posting a 1.1% weekly decline, its sharpest fall since mid-May. Rising oil prices and higher global bond yields pressured the currency, erasing much of its early-September gains that had taken it to a two-month high of near 94.30 per dollar.

Brent crude was on course today to end the week above $100 a barrel for the first time since mid-May. Reserve Bank of India Governor Sanjay Malhotra said the central bank would need to support the foreign-exchange market, indicating potential dollar sales to help drain excess rupee liquidity from the banking system.

Crypto
The cryptocurrency markets remained under pressure on Friday, with total market capitalisation falling 3.0% over the past 24 hours to around $2.71 trillion. Bitcoin traded near $77,225, stabilising around its immediate support after retreating from a monthly high above $81,200, while Ethereum was relatively flat at around $2,466.

The weakness followed a hotter-than-expected US producer price inflation reading of 5.4%, which strengthened expectations of tighter monetary policy and pushed Treasury yields higher. Markets are now pricing a 62.2% probability of a Federal Reserve rate hike next week, weighing on demand for non-yielding risk assets such as cryptocurrencies.

US Stock Futures
US stock futures edged higher on Friday as investors awaited August consumer price inflation data for clues on the Federal Reserve's interest-rate outlook. S&P 500 futures rose 0.19%, Dow futures gained 151 points and Nasdaq-100 futures were up less than 0.1%.

US equities came under pressure on Thursday as oil prices surged, with WTI crude settling above $100 a barrel and Brent also reaching its highest settlement since May 19. The continued US-Iran conflict has kept energy markets volatile and raised concerns over renewed inflationary pressure, making the CPI report a key focus for investors.

US Treasury Notes
US Treasury note yields were largely steady early Friday as investors paused after Thursday's sharp global bond sell-off and awaited the August consumer price inflation report for clues on the Federal Reserve's policy outlook. The benchmark 10-year Treasury yield held around 4.95%, after approaching the psychologically important 5% level overnight, while the policy-sensitive two-year yield remained elevated near 4.57%.

Higher-than-expected US producer inflation and crude oil prices above $100 a barrel have strengthened concerns over persistent inflation and reduced expectations of monetary easing. Investors are now watching CPI data for confirmation of whether the recent rise in yields and expectations of tighter policy can extend.

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