Post Session: Quick Review

Indian equity benchmarks ended in negative territory on Monday, reversing the gains recorded in the previous session, amid escalating tensions in West Asia after the United States launched an attack on an Iranian island in the Strait of Hormuz. Sentiments remained cautious as investors awaited the release of India’s Q1 FY27 GDP data.

Both the Sensex and Nifty ended lower on Monday, weighed down by heavy selling pressure in heavyweight stocks. Persistent foreign fund outflows, coupled with renewed concerns over a potential interest rate hike by the US Federal Reserve, further dented investor sentiment. Meanwhile, Adani Group stocks were among the biggest laggards across both markets.

Some of the important factors in trade:

India’s industrial growth fell to 6.7% in July: Traders were 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.

FII selling intensifies: Some cautiousness came as foreign institutional investors (FIIs) sold Indian equities worth Rs 5,039.80 crore on August 28.

India aims to conclude CEPA negotiations with Chile within this year: Traders took note of the Ministry of Commerce & Industry’s notification stating that India remains committed to concluding the Comprehensive Economic Partnership Agreement (CEPA) negotiations with Chile within this year, with the aim of delivering a balanced and mutually beneficial framework that provides equitable and commercially meaningful outcomes for businesses on both sides.

On the global front: European markets were trading in red, amid escalating tensions between Washington and Tehran around the Strait of Hormuz. Asian markets ended mixed, as hawkish remarks from Fed Chair Kevin Warsh at Jackson Hole, amid mounting concerns over rising inflation risks, dampened investors’ appetite for risk.

The BSE Sensex ended at 76957.27, down by 307.24 points or 0.40% after trading in a range of 76751.32 and 77177.27. There were 7 stocks advancing against 23 stocks declining on the index. (Provisional)

The only gaining sectoral indices on the BSE were Bankex up by 0.36% and Auto up by 0.04% while, Utilities down by 2.64%, Metal down by 2.42%, Basic Materials down by 1.52%, TECK down by 1.41%, and Power down by 1.31% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were ICICI Bank up by 1.11%, Reliance Industries up by 0.75%, Bharat Electronics up by 0.62%, Mahindra & Mahindra up by 0.47% and Maruti Suzuki India up by 0.44%. On the flip side, Adani Ports and Special Economic Zone down by 2.94%, Tata Steel down by 2.47%, Eternal down by 2.35%, Infosys down by 1.49% and HDFC Bank down by 1.45% were the top losers. (Provisional)

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 ended at 24080.40, down by 95.25 points or 0.39% after trading in a range of 23993.60 and 24128.70. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were Sun Pharma up by 3.37%, Nestle India up by 2.88%, Axis Bank up by 2.77%, Max Healthcare Inst. up by 2.76% and Grasim Industries up by 2.46%. On the flip side, Adani Enterprises down by 9.76%, Adani Ports and Special Economic Zone down by 6.70%, ITC down by 3.95%, Bharti Airtel down by 3.75% and Tata Motors Passenger down by 3.30% were the top losers. (Provisional)

European markets were trading lower; France’s CAC fell 10.68 points or 0.13% to 8,390.50 and Germany’s DAX lost 221.49 points or 0.83% to 26,348.50.

Asian markets ended mixed on Monday amid renewed Middle East tensions after US forces struck Iranian rocket launchers on Larak Island in the Strait of Hormuz, triggering immediate Iranian attacks on American forces stationed in Jordan. Meanwhile, Federal Reserve Chair Kevin Warsh's hawkish Jackson Hole remarks in the face of rising inflation risks dampened investors' appetite for risk. Chinese market gained as the latest data showed China’s Manufacturing PMI ticked up to 49.8 in August, beating expectations of 49.7 and improving from July's 49.2, while the Non-Manufacturing PMI held steady at 49. South Korea’s Kospi surged on expectations of robust semiconductor export growth. Malaysian market remained closed on account of National Day holiday.