SGX Nifty September 2026 futures declined by 21.50 points, suggesting a bearish start for the Nifty 50. Global markets exhibited weakness, reflecting caution surrounding elevated crude oil prices and rising bond yields. These factors have intensified inflation concerns, particularly in the context of the escalating US-Iran conflict in the Middle East.

Institutional Flows:

Foreign portfolio investors acquired shares valued at Rs 1,143.38 crore, whereas domestic institutional investors recorded net purchases amounting to Rs 1,846.94 crore in the Indian equity market on 1 September 2026, as per provisional data. Foreign Portfolio Investors acquired shares valued at Rs 17,366 crore in 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:

Asian markets experienced a significant decline on Wednesday, reflecting the overnight downturn on Wall Street. The resurgence of tensions between the US and Iran has led to an increase in crude oil prices, raising apprehensions regarding inflation, interest rates, and global economic growth. Wall Street continued its downward trajectory on Tuesday, as the Dow Jones Industrial Average decreased by 418.97 points, representing a 0.79% decline, settling at 52,766.93. The S&P 500 experienced a decrease of 54.67 points, representing a decline of 0.71%, settling at 7,631.47. Meanwhile, the Nasdaq Composite fell by 271.11 points, equivalent to a 1.03% drop, closing at 26,099.77.

The selloff ensued after a notable increase in oil prices, prompted by renewed military engagement between the US and Iran, which heightened apprehensions regarding potential supply disruptions via the Strait of Hormuz. Brent crude increased to approximately $95 a barrel on Wednesday, marking its highest point in five weeks, following a second consecutive session of gains. Rising energy prices have exacerbated inflation worries and played a role in a worldwide bond market decline. The US 10-year Treasury yield rose to approximately 4.80%, while Japan’s 10-year government bond yield neared 3%, contributing to the strain on equity valuations.

Markets are currently reevaluating the Federal Reserve’s perspective on interest rates. The likelihood of a 25-basis-point rate increase at the Federal Reserve’s meeting on 16 September has increased to approximately 67%, up from 39.6% the previous week, in light of hawkish remarks from Fed officials. The economic data from the United States released overnight revealed a varied landscape. The ISM Manufacturing PMI declined to 54.6 in August, down from 55.6 in July, suggesting that while manufacturing activity remains in expansion territory, the rate of growth has moderated. The New Orders Index decreased to 53.7 from 56.7, while the Employment Index decreased to 51.2 from 52.8. The Prices Index remained elevated at 71.1, indicating persistent input-cost pressures. The US labour market exhibited a degree of resilience, as JOLTS job openings increased by 89,000, reaching 7.271 million in July.

However, hiring decreased by 278,000 to 5.054 million, while the hires rate fell to 3.2%, indicating a degree of moderation in labor-market momentum despite ongoing demand for workers. US construction spending exhibited a decline, decreasing by 0.5% in July to a seasonally adjusted annual rate of $2.158 trillion. The decline contributed to indications of diminished activity in certain sectors of the US economy. Investors will now monitor forthcoming US labor-market data, including the nonfarm payrolls report scheduled for Friday, for additional insights into the Federal Reserve’s policy trajectory. The interplay of high oil prices, ongoing inflationary pressures, and indications of a decelerating economic landscape is expected to maintain volatility in the markets.

Domestic Market:

The key equity indices concluded the trading day with a slight decrease on Tuesday, marking a continuation of their downward trajectory for the second consecutive session. Renewed tensions in the Middle East have led to an increase in crude oil prices and global bond yields, resulting in a cautious stance among investors. The Nifty concluded the trading session beneath the 24,100 threshold, as stocks in the banking, financial services, automotive, and pharmaceutical sectors faced downward pressure. However, gains in IT and FMCG stocks contributed to mitigating the broader market’s losses.

Crude oil continued to be the primary macroeconomic concern as renewed hostilities between the US and Iran heightened fears of extended supply disruptions via the Strait of Hormuz. The increase in global bond yields has intensified the pressure on equities. The S&P BSE Sensex experienced a decrease of 12.99 points, reflecting a decline of 0.02%, settling at 76,944.28. The Nifty 50 index experienced a decline of 24.60 points, reflecting a decrease of 0.01%, closing at 24,055.80.