Sensex, Nifty trade lower amid renewed geopolitical tensions, rising crude oil prices

Indian equity benchmarks made pessimistic start on Monday and extended their losses on the back of negative cues from global markets after crude oil moved above $90 per barrel after United States launched an attack on an Iran's island in the Strait of Hormuz. Some cautiousness came as foreign institutional investors (FIIs) sold Indian equities worth Rs 5,039.80 crore on August 28. Traders were also concerned as India’s industrial growth fell to 6.7 percent in the month of July 2026 from a revised growth of 8.8 percent in June 2026 amid contraction in mining activity and slowdown in manufacturing growth.

Both Sensex and Nifty were trading in red with cut around half a percent each in early deals amid selling pressure in Metal, IT and Realty counters. However, buying was visible in telecom stocks with Bharti Airtel gaining over a percent as it led the industry's July mobile subscriber growth with 26.8 lakh net additions.

Global cues remained weak with most of the Asian markets were trading lower as investors assessed a more hawkish policy outlook from Federal Reserve Chair Kevin Warsh and renewed US-Iran tensions. Asian technology stocks came under pressure as higher expected borrowing costs weighed on risk appetite. Besides, China's manufacturing activity remained in contraction for a second consecutive month in August, although the pace of decline eased.

The BSE Sensex is currently trading at 76876.70, down by 387.81 points or 0.50% after trading in a range of 76870.55 and 77177.27. There were 3 stocks advancing against 27 stocks declining on the index.

The only gaining sectoral index on the BSE was Telecom up by 0.24%, while Metal down by 2.18%, IT down by 1.92%, Realty down by 1.83%, Basic Materials down by 1.61% and Capital Goods down by 1.25% were the top losing indices on BSE.

The few gainers on the Sensex were HDFC Bank up by 2.20%, Kotak Mahindra Bank up by 0.08% and Bharti Airtel up by 0.07%. On the flip side, Infosys down by 2.75%, Tata Steel down by 2.12%, TCS down by 1.41%, Titan Company down by 1.35% and Interglobe Aviation down by 1.34% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman said India has remained resilient amid global uncertainties by continuously monitoring developments abroad while keeping the country’s own requirements in focus. Addressing the Indian diaspora in Chicago, she saidn“As a result, Indian farmers, Indian households and Indian logistics did not suffer.” She said several countries had seen their economic calculations go haywire amid the uncertainties, but India, despite its limitations, had managed to protect its citizens in the challenging environment. She emphasised that India has sustained growth of more than 7 per cent since the COVID-19 pandemic and said the country’s growth would remain in that range this year as well. She said this growth had come against the backdrop of the COVID-19 pandemic, the Russia-Ukraine war, tariff uncertainties and the Iran-US conflict. 

She also said India’s ability to track global developments while simultaneously understanding domestic requirements had helped the country navigate the uncertain environment with resilience. On fiscal prudence, she said, “We have set ourselves a certain target, which is to bring the borrowing down to the 50 per cent level of GDP by 2030. Therefore, I will be working on that path.” Observing that there are advanced economies whose debt is well over 200 per cent of their GDP even now, she said, “We have given ourselves a fiscal discipline path on the fiscal deficit as well. We have fulfilled the trajectory. The last mile that had to be reached by 2025-26, we have reached.” 

On India’s credit rating, she said it was improving, and that the improvement was not being achieved by cutting corners or stopping resources meant for social welfare, but through proper management of the economy. Referring to the goal of Viksit Bharat by 2047, she said it was hardly 20 years away. She said the speed and scale at which reforms were taking place required much more support, adding, “Lots more support from people who are talented and have exposure. Lots more support from people who can give ideas for us to carry it forward.” “And, above all, support in terms of capital, which is so required for a country to meet all its aspirations.” On the trade deal with the US, she said final negotiations were under way.

The CNX Nifty is currently trading at 24024.60, down by 151.05 points or 0.62% after trading in a range of 24024.25 and 24128.70. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 1.87%, Coal India up by 0.70%, ONGC up by 0.48%, Bajaj Auto up by 0.45% and Apollo Hospital up by 0.12%. On the flip side, Adani Enterprises down by 2.67%, Infosys down by 2.60%, Hindalco Industries down by 2.51%, Tata Steel down by 2.47% and Shriram Finance down by 2.19% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted slipped 649.28 points or 1.4% to 45,682.17, Nikkei 225 lost 564.56 points or 0.85% to 65,841.00, Hang Seng declined 186.79 points or 0.74% to 25,398.00, KOSPI dropped 101.04 points or 1.49% to 6,687.84, Jakarta Composite weakened 28.05 points or 0.43% to 6,490.07 and Shanghai Composite was down by 7.72 points or 0.2% to 3,944.46, while Straits Times rose 29.86 points or 0.52% to 5,729.79.