Markets Reverse Early Gains To End In Red; Sensex Falls 417 Points, Nifty 41 Points Lower

Last Updated:September 03, 2026, 3:51 PM IST

The markets reverse early gains as supportive global cues and renewed FII inflows collided with lingering geopolitical tensions and elevated global yields.

Stock Market Today.

The domestic equity markets ended lower on Thursday, September 3, with the BSE Sensex declining 417.49 points, or 0.55%, to 76,152.86, while the NSE Nifty 50 fell 41 points, or 0.17%, to 23,873.45. The markets reversed early gains as supportive global cues and renewed FII inflows collided with lingering geopolitical tensions and elevated global yields.

The Sensex opened at 76,724.95 and touched an intraday high of 76,919.02 before slipping to a low of 76,724.95. The Nifty, which opened at 23,997.95, hit a high of 24,025.40 and a low of 23,873.45.

The broader market outperformed the benchmarks. The Nifty Midcap 100 gained 0.37%, while the Nifty Smallcap 100 rose 1.25%. The Nifty Smallcap 50 and Nifty Smallcap 250 advanced 1.23% and 1.06%, respectively. India VIX declined 1.87% to 11.38.

Sectorally, realty stocks led the gains, with the Nifty Realty index rising 2.70%. Media gained 1.66%, while chemicals, financial services and PSU banks also ended higher. On the other hand, Nifty IT fell 0.85%, FMCG declined 0.62%, auto shed 0.52% and pharma dropped 0.44%.

Among Sensex stocks, Adani Ports rose 1.50%, Axis Bank gained 1.20% and HDFC Bank advanced 1.08%. BEL, Asian Paints and Bharti Airtel also ended higher.

On the losing side, HCLTech fell 1.46%, Tech Mahindra declined 1.41%, Titan dropped 1.20% and M&M lost 1%. Trent, ITC and Bajaj Finance were among the other notable laggards.

Vinod Nair, head of research at Geojit Investments Ltd, said, “The market’s recovery attempt lost steam as supportive global cues and renewed FII inflows collided with lingering geopolitical tensions & elevated global yields. Banking and realty stocks provided leadership, while small-caps attracted investor interest, reflecting confidence in domestic growth prospects. Stubbornly high crude oil prices continue to act as key overhangs for the domestic market.”

He added that while India’s strong growth momentum and recent sovereign rating upgrade remain powerful structural positives, near-term market direction will largely depend on the evolution of global macro and geopolitical risks.

Ponmudi R, CEO of Enrich Money, a Sebi-registered online trading and wealth tech firm, said, “Indian equity markets ended little changed after a mildly positive start, as persistent Middle East tensions and elevated crude oil prices offset gains in financial stocks. Strong NRI deposit inflows, however, provided support to the banking sector, easing pressure on the rupee and tempering concerns over tighter domestic liquidity and interest rates.”

He added that the Nifty opened on a firm note but gradually surrendered its gains as weak global cues and elevated geopolitical risks kept investors in a cautious, risk-off mood despite an improving domestic backdrop. Market performance remained mixed, with gains in financials and small-cap stocks offset by broad-based weakness in FMCG, pharmaceuticals, auto and IT. Hexaware Technologies emerged as one of the biggest drags, falling nearly 3% after the resignation of its CEO raised concerns over the company’s near-term growth outlook.

“Financial stocks found support after FCNR(B) deposits rose sharply, taking banks’ total NRI deposits to around $136 billion, ahead of market expectations. The inflows are expected to improve system liquidity ahead of the festive season, support banks’ net interest margins and reduce pressure on domestic interest rates, helping financial stocks limit broader market losses. The accompanying dollar inflows also strengthened the rupee, with USD/INR easing toward the Rs 94.4 level, aided by continued RBI intervention,” Ponmudi said.

He added that energy markets remained firmly in focus, with domestic crude futures climbing above Rs 8,600 while international crude traded above $91.5 a barrel as hopes of normalising traffic through the Strait of Hormuz continued to fade. A sustained rise in oil prices would increase India’s import bill, widen the trade deficit and keep inflationary pressures elevated, leaving investors closely focused on further developments in the Middle East.

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Will geopolitical tensions continue to impact Indian markets?

Geopolitical risks and external macroeconomic factors are expected to continue dominating the near-term direction of Indian markets, keeping the broader outlook cautious. Domestic equities are likely to remain under pressure as escalating conflict in the Middle East, surging crude oil prices, and rising global bond yields continue to weigh on investor sentiment. However, India’s resilient domestic growth outlook is expected to provide an underlying cushion.

How might rising crude oil prices affect India’s economy?

Rising crude oil prices present several risks to India’s economy. Because India imports most of its crude oil, higher prices increase the demand for US dollars, putting downward pressure on the rupee. Manufacturers facing sustained input cost pressures may also be forced to pass these costs on to consumers. Additionally, elevated oil prices can weigh on investor sentiment, dragging down domestic stock markets, and negatively impact the profit margins of companies in sectors like FMCG, paint, and tyres.

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