SGX Nifty September 2026 futures declined by 1 point, suggesting a stable opening for the Nifty 50.
Real GDP increased 7.8% year over year in Q1 FY27 (April-June 2026), demonstrating the resilience of India’s economic growth. The growth surpassed the Reserve Bank of India’s projection of 7%. However, it moderated from the revised 8.6% growth recorded in Q4 FY26. India’s fiscal deficit reached Rs 4.55 lakh crore in the period from April to July, representing 26.8% of the annual target of Rs 16.96 lakh crore for the fiscal year 2027. The government has set its fiscal-deficit target for FY27 at 4.3% of GDP.
During their meeting on the sidelines of the Shanghai Cooperation Organization summit on Monday, Prime Minister Narendra Modi urged Russian President Vladimir Putin to take steps toward concluding the Ukraine war and advocated for a cessation of hostilities. Modi stated that India endorses all initiatives aimed at fostering peace and emphasised that the ongoing conflict represents a regression for humanity. The appeal emerged as Russia cautioned about intended “massive strikes” on Ukraine’s energy infrastructure, heightening apprehensions regarding a potential resurgence of winter offensives. A recent Russian strike on an ammunition warehouse has reportedly resulted in the deaths of 38 individuals.
Institutional Flows:
On 31 August 2026, foreign portfolio investors divested shares amounting to Rs 7,985.88 crore, whereas domestic institutional investors recorded net purchases totalling Rs 4,588.88 crore in the Indian equity market, as per provisional data. Foreign Portfolio Investors acquired shares valued at Rs 17,366 crore in August up to the 31st, 2026. This comes after they made net cash purchases of Rs 6,731.97 crore in July 2026 and net sales of Rs 53,957.90 crore in June of the same year.
Global Markets:
Most Asian stocks experienced a downturn on Tuesday, as escalating tensions between the US and Iran led to an increase in oil prices, reigniting worries regarding inflation and interest rates. Investors were evaluating the likelihood of additional rate increases by the Federal Reserve in light of the hawkish remarks made by Fed Chair Kevin Warsh. Wall Street concluded the trading session on Monday with a decline, as increasing Treasury yields and elevated oil prices exerted pressure on risk assets. The S&P 500 experienced a decline of 0.33%, the Nasdaq Composite saw a reduction of 0.12%, while the Dow Jones Industrial Average fell by 0.70%.
The market is also anticipating the US nonfarm payrolls report scheduled for Friday, which may offer new insights into the Federal Reserve’s policy trajectory. Oil prices surged past $90 a barrel as military strikes between the US and Iran resumed, marking a departure from a previously stable period. US forces targeted Iranian rocket launchers located on Larak Island in the Strait of Hormuz, prompting Iran to respond with assaults on US military installations in Jordan. The escalation has heightened apprehensions regarding extended supply interruptions along the crucial oil shipping corridor. Brent crude settled at $90.49 a barrel on Monday, reflecting an increase of 2.71%, while the US 10-year Treasury yield ascended to approximately 4.75%.
Elevated oil prices have reignited apprehensions regarding enduring inflation, potentially bolstering the argument for more stringent monetary policy. The renewed conflict has heightened uncertainty regarding the outlook for the Strait of Hormuz, a critical passage for a substantial portion of global oil shipments. Shipping activity has declined significantly in light of the ongoing hostilities, heightening apprehensions regarding potential additional supply disruptions.
Domestic Market:
Key equity benchmarks concluded the trading session on a downward trajectory on Monday, with the Nifty falling beneath 24,100. This decline was influenced by escalating US-Iran tensions, rising crude oil prices, and lacklustre global indicators, which collectively dampened market sentiment. The selloff was widespread; however, private banking and healthcare equities offered a degree of support. Media and metal stocks experienced significant declines. Crude oil persisted as a significant macroeconomic risk, with the resurgence of military tensions between the US and Iran heightening worries about possible disruptions to supplies via the Strait of Hormuz.
The session also marked the implementation of MSCI’s latest index changes under the new closing-auction mechanism, resulting in significant stock-specific flows. The S&P BSE Sensex experienced a decrease of 307.24 points, representing a decline of 0.40%, closing at 76,957.27. The Nifty 50 index experienced a decline of 95.25 points, representing a decrease of 0.39%, closing at 24,080.40.
