Markets edged lower in early trade due to higher oil prices and fresh tensions between the US and Iran
Among the 30 Sensex companies, Bajaj Finserv, InterGlobe Aviation, Titan, State Bank of India, Bajaj Finance and Axis Bank were among the major laggards. Winners included ITC, HCL Tech, Bharti Airtel and Infosys. File | Photo credit: PTI
Market benchmarks Sensex and Nifty edged lower in early trade on Tuesday (Sep 1, 2026) as higher oil prices and fresh tensions between the US and Iran weighed on investor sentiment.
Growing expectations that the U.S. central bank could keep monetary policy tighter for longer are also weighing on risk appetite in emerging markets, the expert said.
The 30-share BSE Sensex was down 121.48 points at 76,835.79 in early trade. The 50-share NSE Nifty was down 52.6 points at 24,027.80.
Among the 30 Sensex companies, Bajaj Finserv, InterGlobe Aviation, Titan, State Bank of India, Bajaj Finance and Axis Bank were among the major laggards. Winners included ITC, HCL Tech, Bharti Airtel and Infosys.
Brent crude, the global oil benchmark, traded 0.76% higher at $91.22 a barrel.
“Indian equity markets are expected to remain cautious as renewed tensions between the US and Iran and the resulting rise in oil prices continue to cloud investor sentiment. Adding to the cautious backdrop is growing expectations that the US Federal Reserve may keep monetary policy tighter for longer, adding to risk appetite in emerging markets,” said Ponmudi R, CEO of Enrich Money, an online trading and investment firm.
Some of these external headwinds are offset by the resilience of the domestic economy. India’s real GDP grew by 7.8% in Q1FY27, comfortably beating RBI’s 7% projection as well as market expectations, he added.
India’s economy grew by a faster-than-expected 7.8% in April-June, showing resilience against concerns that the war in Iran and resulting global uncertainty could weigh on domestic economic momentum.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 and Hong Kong’s Hang Seng all traded lower, while Shanghai’s SSE Composite was higher.
US markets ended lower on Monday (August 31, 2026).
Foreign institutional investors (FIIs) folded shares worth ₹ 7,985.88 crore on Monday (August 31, 2026), according to stock exchange data.
On Monday (August 31, 2026), the Sensex fell 307.24 points, or 0.40%, to settle at 76,957.27. The Nifty fell 95.25 points or 0.39% to end at 24,080.40.
Published – 01 Sep 2026 10:56 IST