SGX Nifty September 2026 futures declined by 36 points, suggesting a bearish start for the Nifty 50.
SEBI announced its intention to reassess the methodology employed for establishing settlement prices of derivative contracts upon expiry. This decision comes in response to feedback gathered after the implementation of the Closing Auction Session in the equity cash segment, effective from 3 August 2026. The regulator indicated that the closing price determined by the CAS also functions as the foundation for settling derivative contracts upon expiry.
Following a month of observation and feedback collection from stock exchanges, brokers, traders, mutual funds, FPIs, and other market participants, SEBI indicated that it might suggest modifications to the settlement-price methodology and intends to release a consultation paper in approximately one week.
Institutional Flows:
On 3 September 2026, foreign portfolio investors divested shares amounting to Rs 2,345.87 crore, whereas domestic institutional investors recorded net purchases totalling Rs 4,977.46 crore in the Indian equity market, as per provisional data. Foreign Portfolio Investors divested shares amounting to Rs 5532.96 crore in September up to the 2nd of September 2026. This follows net cash purchases of Rs 17,366 crore in August 2026, while they were net buyers of Rs 6,731.97 crore in July 2026.
Global Markets:
Asian stocks exhibited a predominantly positive trend on Friday, 4 September 2026, buoyed by a robust rally on Wall Street. This movement was influenced by a decline in US Treasury yields and a tempering of expectations regarding a potential rate hike by the Federal Reserve in September. Chinese artificial intelligence stocks experienced an uptick on Friday following the launch of OpenAI’s latest model, GPT-6 Astra. Investors interpreted this development as a favourable signal for the nation’s AI developers. MiniMax experienced an increase of 6.5%, followed by Baidu at 4.6%, Kuaishou Technology at 4.2%, JD.com at 4.1%, and Xiaomi at 3.9%, with Z.AI also showing a slight upward movement. The gains extended a recent rally in Chinese AI stocks as investors evaluated the commercial potential of accelerated advancements in large language models and increasingly autonomous AI-agent services.
US equities experienced a significant uptick on Thursday, as the Dow Jones Industrial Average increased by 1.18% to 53,686.11, the S&P 500 rose by 1.06% to 7,747.71, and the Nasdaq Composite climbed by 1.40% to 26,584.06. Technology stocks spearheaded the upward movement, with Microsoft, Meta Platforms, and Nvidia standing out as significant contributors. Snowflake experienced a remarkable increase of 16.6% following its earnings report, thereby bolstering the overall software sector. Market sentiment improved following remarks from Federal Reserve Governor Christopher Waller, who indicated his support for maintaining the federal funds rate at its current level, contingent upon forthcoming data that suggests a reduction in inflationary pressures. Following his comments, the probability of a September rate hike decreased to approximately 50% from 63.2% on Wednesday, as indicated by CME FedWatch.
The US 10-year Treasury yield has experienced a decline for the second consecutive session. Attention has now shifted to the US nonfarm payrolls report scheduled for release later on Friday. The data may impact anticipations regarding the Federal Reserve’s policy meeting scheduled for September 15-16. Oil prices continue to pose a significant risk to global markets. Brent crude was around $95.7 a barrel on Friday and is poised for a weekly gain of approximately 7%, as ongoing tensions between the US and Iran have heightened concerns regarding potential disruptions to energy supplies via the Strait of Hormuz.
Domestic Market:
Indian equity benchmarks concluded the trading session on 3 September 2026 with a decline for the fourth consecutive day. The Sensex decreased by 417.49 points, or 0.55%, settling at 76,152.86, while the Nifty 50 fell by 41 points, or 0.17%, to reach 23,873.45. This downturn was primarily driven by selling pressure in the IT, auto, and other sectors, which overshadowed the gains observed in banking and realty stocks.
Elevated Brent crude near $96 a barrel and tensions in the Middle East have contributed to a cautious sentiment in the market. However, mid- and small-cap stocks have demonstrated resilience, bolstered by stronger foreign inflows and liquidity within the banking sector, which provided some support. Over the course of four sessions, the Sensex has experienced a decline of 1.44%, while the Nifty has decreased by 1.25%.
