Post Session: Quick Review

Indian equity benchmarks reversed intraday gains and ended lower on Tuesday, pressured by a surge in crude oil prices amid renewed escalation in West Asia tensions. The decline came despite stronger-than-expected domestic growth data, with investors assessing the latest PMI data for cues on economic growth and business activity.

Both the Sensex and Nifty settled marginally lower, as late-session sell-off erased market gains. Selling pressure was seen across financials, autos and select heavyweight stocks, while ITC, HCL Technologies, Bharti Airtel and Infosys outperformed and provided some support.

Some of the important factors in trade:

FIIs remain net sellers: Sentiments remained subdued as Foreign Institutional Investors (FIIs) continued their selling spree on August 31, 2026, offloading equities worth Rs 7,985.88 crore.

India manufacturing activity slips to five-year low at 52.8 in August: Traders remained cautious as HSBC India Manufacturing Purchasing Managers' Index (PMI) survey released showed India's manufacturing activity expanded at its weakest pace in five years in August as growth in output and new orders slowed amid softer demand conditions. The seasonally adjusted index fell to 52.8 in August from 53.5 in July, marking its third consecutive monthly decline.

India's economy grew 7.8% in the April-June quarter: Traders overlooked that India's economy grew 7.8% in the April-June quarter of 2026-27, beating the RBI's 7% projection. 

On the global front: European markets were trading in red, amid rising concerns over Fed policy and escalating U.S.-Iran tensions. Asian markets ended mostly in red, following the broadly negative cues from Wall Street overnight.

The BSE Sensex ended at 76944.28, down by 12.99 points or 0.02% after trading in a range of 76656.12 and 77231.87. There were 9 stocks advancing against 21 stocks declining on the index. (Provisional)

The gaining sectoral indices on the BSE were TECK up by 1.44%, IT up by 1.24%, Energy up by 0.94%, Oil & Gas up by 0.87% and FMCG up by 0.37%, while auto down by 1.41%, Consumer Durables down by 1.25%, Telecom down by 1.06%, Realty down by 1.03% and Capital Goods down by 0.95% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were ITC up by 4.16%, HCL Technologies up by 3.41%, Bharti Airtel up by 2.13%, Infosys up by 1.70% and Kotak Mahindra Bank up by 1.60%. On the flip side, Maruti Suzuki India down by 4.19%, State Bank of India down by 2.91%, Interglobe Aviation down by 2.68%, Bajaj Finserv down by 2.68% and Mahindra & Mahindra down by 2.29% were the top losers. (Provisional)

Meanwhile, the Controller General of Accounts (CGA) in its latest data has showed that India's fiscal deficit touched 26.8 per cent of the current financial year (FY27) budget target at the end of July 2026. The deficit was at 29.9 per cent of Budget Estimates (BE) of 2025-26 in April-July of FY26. In value terms, the fiscal deficit, or gap between the government’s expenditure and revenue, was Rs 4.55 lakh crore in the April-July period of FY27. The government has pegged its fiscal deficit target for FY27 at 4.3% of Gross Domestic Product (GDP), or Rs 16.96 lakh crore.  

According to the CGA, the Centre's net tax revenue was about Rs 8.45 lakh crore, or 29.5 per cent of the corresponding BE of 2026-27 of total receipts, up to July 2026. In the corresponding period of the previous fiscal year, the net tax revenue was at 23.3 per cent of that year's BE.

The data on monthly accounts showed that the government’s total expenditure during the first four months of FY27 stood at about Rs 17.62 lakh crore, or 32.9 per cent of BE. In the year-ago period, it was at 30.9 per cent of BE. The Centre transferred Rs 3,72,354 crore to state governments as devolution of share of taxes during the period, which is Rs 56,190 crore lower than the previous year.  

The CNX Nifty ended at 24055.80, down by 24.60 points or 0.10% after trading in a range of 23952.55 and 24143.15. There were 20 stocks advancing against 30 stocks declining on the index. (Provisional)

The top gainers on Nifty were ITC up by 4.34%, Bharti Airtel up by 3.60%, Adani Ports and Special Economic Zone up by 3.41%, HCL Technologies up by 2.99% and Reliance Industries up by 2.51%. On the flip side, Shriram Finance down by 4.58%, Maruti Suzuki India down by 4.41%, Nestle India down by 3.90%, Max Healthcare down by 3.75% and Interglobe Aviation down by 3.48% were the top losers. (Provisional)

European markets were trading lower; Germany’s DAX lost 286.01 points or 1.1% to 25,972.10, UK’s FTSE 100 decreased 109.71 points or 1.02% to 10,714.55, and France’s CAC fell 34.2 points or 0.41% to 8,300.30.

Asian markets settled mostly lower on Tuesday as renewed US-Iran tensions and attacks near the Strait of Hormuz pushed Brent crude prices above $92 per barrel, and raised concerns about inflation and interest rates hike. Chinese and Hong Kong markets declined, even as investors anticipated more substantive economic stimulus and policy support from Beijing following recent soft data. However, South Korea's Kospi gained as stronger-than-expected exports and robust semiconductor demand linked to the artificial intelligence boom supported technology stocks.