SGX Nifty September 2026 futures increased by 38 points, suggesting a favourable start for the Nifty 50.

Institutional Flows:

On 27 August 2026, foreign portfolio investors divested shares amounting to Rs 298.26 crore, whereas domestic institutional investors recorded net purchases totalling Rs 4,977.17 crore in the Indian equity market, as per provisional data. Foreign Portfolio Investors acquired shares valued at Rs 17,996.51 crore in August up to 27 August 2026. This follows net cash purchases of Rs 6,731.97 crore in July 2026, while they were net sellers of Rs 53,957.90 crore in June 2026.

Global Markets:

US stock futures were trading 102 points higher on Friday, indicating a favourable opening for Wall Street. Asian stocks experienced an uptick on Friday, reflecting the overnight advancements observed on Wall Street, bolstered by robust performance in technology and IT services sectors. Meanwhile, inflation in Tokyo, a leading indicator of nationwide price trends, remained near the Bank of Japan’s 2% target in August. Core consumer prices, excluding volatile fresh food prices, increased by 1.8% year-on-year, a modest rise from 1.7% in July and generally consistent with forecasts. A measure excluding both fresh food and fuel was approximately 2%, drawing focus to the Bank of Japan’s monetary policy outlook.

All three major US indices concluded the trading day on Thursday with gains, primarily driven by a significant surge in technology stocks in the wake of Nvidia’s results and a positive revenue forecast. The Dow Jones Industrial Average rose 0.20% to 53,569.00, while the S&P 500 gained 0.72% to 7,730.99 and the Nasdaq Composite advanced 1.57% to 26,541.00. Nvidia surged 8.7% following its robust results and forecast, which bolstered expectations for continued demand in AI infrastructure. Salesforce experienced a notable increase of 22.6%, whereas CrowdStrike saw a rise of 20.5%, contributing to the ongoing rally driven by the technology sector. US initial jobless claims decreased by 4,000 to 203,000 in the week ending August 22, contrasting with economists’ forecasts of 208,000, indicating ongoing strength in the labour market. The data could bolster the argument for the Federal Reserve to exercise caution regarding rate cuts, especially given that inflation continues to exceed its 2% target.

In a separate development, the US goods trade deficit expanded significantly to $118.8 billion in July compared to the prior month, marking the largest gap since March 2025. Exports decreased by 2.9%, whereas imports experienced a rise of 3.7%. This uptick in imports can be attributed to robust demand for capital goods associated with investments in artificial intelligence. The broader trade deficit may exert pressure on economic growth in the third quarter. Crude oil prices experienced an uptick on Thursday following media reports indicating that the Trump administration was disinclined to revert to the terms of a June memorandum of understanding with Iran. This development has cast uncertainty over the potential for alleviating supply disruptions in the Strait of Hormuz.

Brent crude concluded the trading session with an increase of 2.1%, reaching a price of $89.70 per barrel. Oil prices, however, softened in early Asian trading on Friday. Attention now turns to Warsh, who is poised to present his inaugural significant address as Federal Reserve chair at the annual Kansas City Fed economic symposium in Jackson Hole, Wyoming. Investors will meticulously analyse his remarks for insights into the Federal Reserve’s strategy regarding inflation and interest rates, especially given that inflation continues to exceed the central bank’s 2% target and long-term Treasury yields remain high.

Domestic Market:

Key benchmark indices extended their losses for the second consecutive session on Thursday, with the Nifty closing below the crucial 24,100 mark as selling in heavyweight stocks dragged the benchmarks lower. Domestic sentiment faced pressure due to profit booking, the monthly expiry of the Sensex, and apprehensions regarding high US inflation and geopolitical tensions. Oil prices softened amid optimism regarding negotiations that may alleviate supply disruptions in the Strait of Hormuz, providing a degree of relief. Concurrently, both foreign and domestic institutional investors continued to be net buyers on August 26.

Sectorally, the advancements in consumer durables and pharmaceuticals were counterbalanced by declines in the metals sector and public sector banks. The S&P BSE Sensex experienced a decrease of 539.35 points, reflecting a decline of 0.70%, closing at 76,933.59. The Nifty 50 index experienced a decline of 116.90 points, representing a decrease of 0.48%, closing at 24,090.85. In the course of two trading sessions, the Sensex has declined by 0.93%, while the Nifty has experienced a decrease of 1%.