Markets relinquish all gains to trade below neutral lines in late trade

Indian equity markets have relinquished all gains to trade below the neutral lines in late afternoon session. Spike in crude oil prices has sparked caution among investors with Brent crude oil prices surging past $92 a barrel amid lingering West Asia tensions. Market sentiments worsened by weaker India Manufacturing PMI data which indicated that India’s manufacturing sector continued expansion but at its slowest pace in five years in August 2026 amid softer demand conditions, which subsequently led to weaker increases in buying levels and stocks, as well as a mild decline in employment. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) eased from 53.5 in July to 52.8 in August. 

Sensex was trading with cut of three tenth of a percent as ICICI Bank, State bank of India, Maruti Suzuki and Mahindra & Mahindra faced selling pressure, while gains in Reliance Industries, Bharti Airtel and ITC has capped the losses. Meanwhile, Nifty underperformed Sensex with cut of around half a percent ahead of weekly expiry of its F&O contracts.

On the global front, Asian equity markets were trading mixed amid escalating tensions in Middle East. European equity markets were trading lower as rising oil prices and bond yields stoked worries about inflation and interest-rate hikes.

The BSE Sensex is currently trading at 76700.67, down by 256.60 points or 0.33% after trading in a range of 76656.12 and 77231.87. There were 8 stocks advancing against 22 stocks declining on the index.

The top gaining sectoral indices on the BSE were TECK up by 0.98%, IT up by 0.74%, Oil & Gas up by 0.70%, Energy up by 0.65% and FMCG up by 0.18%, while Auto down by 1.63%, Consumer Durables down by 1.35%, Telecom down by 1.21%, Realty down by 1.20% and Consumer Discretionary down by 1.10% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 4.21%, HCL Technologies up by 3.64%, Bharti Airtel up by 1.97%, Infosys up by 1.77% and Kotak Mahindra Bank up by 1.58%. On the flip side, Maruti Suzuki India down by 4.31%, Interglobe Aviation down by 3.16%, State Bank of India down by 2.76%, Mahindra & Mahindra down by 2.73% and Bajaj Finserv down by 2.62% were the top losers.

Meanwhile, in a bid to boost chip manufacturing ecosystem in the country, the government has notified Semicon 2.0 programme with an outlay of Rs 1.27 lakh crore, offering fiscal support across the semiconductor value chain, including 40 per cent funding for large silicon wafer fabs, as the country steps up efforts to attract global chipmakers and build a domestic design and manufacturing ecosystem. The programme provides central fiscal support of 40 per cent of eligible capital expenditure for silicon semiconductor wafer fabs, with a minimum investment threshold pegged at Rs 20,000 crore. 

The scheme also offers incentives for chip design, advanced packaging, semiconductor equipment and materials, research and development and talent creation. India’s bold pitch to woo global investors and foster startups working on cutting-edge chip design comes at a time when semiconductors have emerged as a critical strategic resource globally, with the AI boom driving unprecedented demand for advanced chips and memory. At the same time, growing concerns over supply-chain vulnerabilities and shifting geopolitics have pushed global players to expand semiconductor capacities and reduce dependence on concentrated production hubs.

The programme was approved by the Union Cabinet in July 2026. Semicon 2.0 covers six pillars and 10 categories in all, spanning chip design, semiconductor equipment and materials, fabrication, packaging, research and development, and talent creation. 

The CNX Nifty is currently trading at 23969.65, down by 110.75 points or 0.46% after trading in a range of 23952.55 and 24143.15. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were ITC up by 4.36%, Adani Ports & SEZ up by 3.26%, Bharti Airtel up by 3.00%, HCL Technologies up by 2.93% and Reliance Industries up by 2.00%. On the flip side, Shriram Finance down by 5.17%, Maruti Suzuki India down by 4.72%, Interglobe Aviation down by 3.75%, Nestle India down by 3.70% and Asian Paints down by 3.21% were the top losers.

Asian equity markets were trading mixed; Nikkei 225 surged 184.07 points or 0.28% to 66,496.00, Jakarta Composite gained 69.97 points or 1.06% to 6,595.45, KOSPI increased 15.78 points or 0.23% to 6,835.80 and Taiwan Weighted added 820.25 points or 1.75% to 46,948.72, while Hang Seng declined 267.99 points or 1.06% to 25,299.00, Straits Times fell 58.93 points or 1.03% to 5,696.43 and Shanghai Composite weakened 6.41 points or 0.16% to 3,979.89.

European equity markets were trading lower; UK’s FTSE 100 decreased 125.21 points or 1.17% to 10,699.05, France’s CAC fell 31.7 points or 0.38% to 8,302.80 and Germany’s DAX lost 288.01 points or 1.1% to 25,970.10.