Indian Markets Slip for 4th Day Amid Oil Fears

Indian equity benchmarks concluded lower for the fourth consecutive session on September 3, 2026, with declines in IT and auto stocks offsetting gains in banking and realty. The Nifty 50 closed down 41 points at 23,873.45, while the BSE Sensex fell 417.49 points to 76,152.86.

Market sentiment was subdued due to escalating crude oil prices, with Brent crude nearing $96 a barrel, and persistent geopolitical tensions in the Middle East. These factors raised concerns about inflation and India's external balances.

Banking stocks, however, displayed strength, bolstered by over $60 billion mobilized through the RBI's special forex swap facility. Foreign portfolio investors also showed renewed interest, with substantial inflows recorded in August.

The broader market, including mid- and small-cap indices, exhibited relative resilience, adding 0.15% and 1.01% respectively. Investors closely monitored crude oil prices, global bond yields, and international developments for market direction.

Separately, foreign investor sentiment improved in August, with FPIs investing $3.1 billion in Indian equities, the highest monthly inflow in nearly two years. The Reserve Bank of India reported forex inflows under its special USD-INR forex swap facility reached $136.38 billion as of August 31, 2026.

In other economic news, India's HSBC Composite PMI was 54.3 in August 2026, indicating continued private-sector growth, albeit at a moderated pace. The HSBC Services PMI rose to 54.1, driven by increased demand and new business.

Stocks like RBL Bank, Titan Biotech, Welspun Corp, XTGlobal Infotech, Housing & Urban Development Corporation, and Inox Wind saw significant upward movements due to corporate announcements and positive brokerage reports. Conversely, Balu Forge Industries experienced a slight decline.

Initial Public Offerings (IPOs) for Rays of Belief and Deepa Jewellers saw strong subscription rates, indicating investor appetite for new listings.