loading
loading
Listen to this article in summarized format Sensex dropped nearly 430 points to fall below 76,100 while Nifty 50 lost 132 points to 23,766, as seen at 11.20 am on Monday. This comes as a fresh escalation in the US-Iran conflict pushed oil prices higher, along with other factors that weighed on investor sentiment. IT stocks were the top losers on the Sensex, with Infosys shares crashing over 3% to lead losses. Broader markets remained mixed, with Nifty Smallcap 100 trading marginally higher while the midcap index traded in the red. The overall market breadth turned negative, with NSE seeing 1,908 declines against 1,462 advances, while 118 stocks remained unchanged. IT stocks were the top losers on Sensex, with Infosys shares crashing over 3% to lead losses. Broader markets remained mixed, with Nifty Smallcap 100 trading marginally higher while the midcap index traded in the red. The overall market breadth turned negative, with NSE seeing 1,908 declines against 1,462 advances, while 118 stocks remained unchanged. 1) Iran-US conflict escalates The conflict between Iran and US sharply escalated over the weekend. US forces struck three Iranian oil tankers on Saturday, including one off the coast of Kharg Island, near Iran's key oil export hub, the country’s Central Command said. Meanwhile, the navy of Iran's Islamic Revolutionary Guard Corps said it targeted three oil tankers that were travelling through unauthorised routes in the Strait of Hormuz as well as three additional US vessels in other areas. Following the attacks, Iran's Parliament Speaker Mohammad Baqer Qalibaf said on Sunday that the US should understand that the rules of the game in the war against Iran have changed "before it is too late". "From now on, any attack against Iran's interests and security will receive a faster, heavier and more painful response," he said in a speech published on his Telegram channel. 2) Oil prices head towards $100/barrel As a result of the fresh escalations in the conflict between Iran and US, oil prices soared close to the critical $100 per barrel mark. Brent crude futures were trading at around $98 per barrel while WTI Crude futures were trading near $93 per barrel. Calling the latest tensions in the Iran-US war a "major escalation in the maritime conflict", maritime intelligence firm Marisks was quoted by Reuters as saying, “Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping”. 3) Fed rate hike bets rise US job growth accelerated sharply in August while the unemployment rate remained steady at 4.1%, implying an improvement in the labour market after recent struggles and keeping a rate increase this month on the table, data released on Friday showed. US nonfarm payrolls increased by 1.62 lakh in August, well above economists' expectations of a gain of 56,000. The sharp growth boosted hopes for a rate hike by the Federal Reserve in September, with traders now pricing in roughly a 57% chance of a rate increase this month. Higher US rates could curb client spending, weighing on Indian IT firms that generate a significant share of their revenue from the United States. This has led to Infosys, TCS, and other heavyweight IT stocks falling up to 3% today. Metal stocks too are bearing the brunt. Also read | Infosys, HCLTech, TCS, other IT stocks drop up to 3% as Fed rate hike worries return. Here's why 4) Bond yields rise Rising bond yields kept investors on the edge. The US 10-year yield continues to hover around 4.8%. The 30-year bond yield rose above 5.24%. Rising bond yields in developed markets typically make bonds more attractive to investors, which in turn can lead to a downtrend in emerging equity markets. 5) FII selling Foreign investors remained net sellers of Indian equities on Friday, selling shares worth Rs 3,112 crore, according to NSE provisional data. This marks the third consecutive session of sale by foreign investors. Overall, FIIs have remained net sellers of Indian equities in five of six consecutive sessions. Persistent selloff by foreign investors dampens sentiment on Dalal Street. What lies ahead for Dalal Street? The Indian stock market has been falling for four weeks now, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted. A relevant question is why this downtrend is continuing despite positive fundamental news regarding the economy and corporate earnings. The analyst said that one explanation can be that worsening tensions in the Middle East and the consequent elevated crude prices are weighing on the market. While it's relevant, there is another domestic factor which is impacting the market, he said. “This is the ongoing IPO boom and the spate of big IPOs expected to hit the market this month. Eleven mainboard IPOs are hitting the market this week. The mega IPOs from NSE and Jio are also expected this month. These mega IPOs are expected to absorb humongous liquidity from the market. Investors are looking for listing gains from these IPOs. In brief, the present focus is on the IPO market rather than the secondary market. This is likely to continue throughout September,” according to the analyst. The better-than-expected jobs data in the U.S. has raised the prospects of a rate hike by the Fed in September, and this also will weigh on equity and bond markets globally, Vijayakumar concluded. Technical view on Nifty Nifty’s downside marker placed at 23,860 remained intact, while also resisting upside at 23,960 on anticipated lines, said Anand James, Chief Market Strategist at Geojit Investments. He advised investors to expect renewed upswing attempts above 23,800, but the 24,150-24,215 region will continue to be the hurdle to cross before strength is confirmed. “Nifty’s inability to float above 23,800 could raise fears of a drop to the low 23,000s, with an initial objective of 23,570,” the analyst further said. Disclosure: This article has been written by Debaroti Adhikary, who is not a Sebi-registered Research Analyst or an investment advisor. Debaroti Adhikary does not hold any financial interest in the company named in the article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-09-07 07:35