SGX Nifty September 2026 futures declined by 11 points, suggesting a prudent opening for the Nifty 50.
SEBI has relaxed compliance obligations for foreign portfolio investors focusing solely on investments in Indian government securities. Such FPIs will no longer be required to disclose details of their investor group, regardless of whether they invest through the Fully Accessible Route or General Route. The action comes in response to the RBI’s choice to eliminate concentration limits for FPIs investing in government securities via the General Route, with the objective of alleviating compliance burdens and encouraging increased foreign engagement in India’s government bond market.
Institutional Flows:
On 7 September 2026, foreign portfolio investors acquired shares valued at Rs 280.13 crore, whereas domestic institutional investors recorded net purchases amounting to Rs 566.76 crore in the Indian equity market, as per provisional data. Foreign Portfolio Investors divested shares amounting to Rs 15,116.06 crore in September up to 7 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:
The US stock market was poised for a measured reopening on Tuesday following the Labour Day holiday, as Dow futures declined by approximately 323 points in response to escalating tensions in the Middle East. Most Asian markets experienced an upward trajectory; however, the extent of these gains was moderated by apprehensions regarding escalating oil prices. Brent crude ascended past $97 a barrel amid escalating tensions in the Strait of Hormuz, driven by military confrontations between the US and Iran. Iran has indicated intentions to impose stricter regulations on the strategic waterway, prompting apprehensions regarding potential interruptions to global oil supplies.
The increase in crude oil prices has further intensified inflation apprehensions and complicated the policy perspective of the Federal Reserve. Markets are assigning a probability exceeding 60% to a 25-basis-point increase in the Fed’s rate at the upcoming September meeting. US inflation data scheduled for release later this week may significantly impact those expectations. Investors are closely monitoring the resurgence of trade tensions between the US and Canada. Canada is poised to implement retaliatory tariffs on approximately $20 billion worth of US goods, as President Donald Trump has issued a warning to Bombardier, stating that the company may face restrictions on selling aircraft in the US unless it shifts production to domestic facilities.
Domestic Market:
The key equity indices concluded the day with slight declines on Monday, influenced by heightened tensions between the US and Iran, alongside robust crude oil prices. Robust employment figures in the United States have rekindled anticipation for a potential interest rate increase by the Federal Reserve in September, while escalating US bond yields have exerted additional pressure on equities in emerging markets. Ongoing sales by foreign institutional investors have further dampened market sentiment. The market is currently experiencing liquidity pressure due to a robust IPO pipeline, as several significant issues are anticipated to draw funds away from the secondary market.
The Nifty concluded its trading session beneath the 23,800 threshold, primarily influenced by declines in the IT and metal sectors. However, shares in the pharmaceutical and consumer durables sectors experienced heightened demand. The S&P BSE Sensex experienced a decrease of 382.62 points, reflecting a decline of 0.50%, closing at 76,132.81. The Nifty 50 index experienced a decline of 118.55 points, reflecting a decrease of 0.50%, closing at 23,779.15.
