Last Updated on September 1, 2026 9:16 pm by INDIAN AWAAZ
By Our Business Correspondent
Key domestic equity indices closed marginally lower on Tuesday, extending their downward trajectory for the second consecutive trading session. Investor sentiment remained cautious as renewed geopolitical tensions in the Middle East drove crude oil prices and global bond yields higher, dampening risk appetite worldwide. Consequently, the benchmark Nifty slipped below the psychological 24,100 threshold, weighed down by heavy selling pressure across banking, financial services, auto, and pharmaceutical counters. However, selective buying and resilience in Information Technology (IT) and Fast-Moving Consumer Goods (FMCG) heavyweights cushioned the broader market from steeper losses.
At the closing bell, the 30-share S&P BSE Sensex declined by 12.99 points, or 0.02%, to settle at 76,944.28. Similarly, the broader NSE Nifty 50 index lost 24.60 points, or 0.01%, ending the day at 24,055.80. Major drags on the Nifty index included heavyweights such as Axis Bank, which dropped 3.23%, State Bank of India (SBI), which fell 2.41%, and ICICI Bank, which shed 1.10%. In the broader market segments, performance remained mixed; the BSE 150 MidCap Index retreated by 0.74%, whereas the BSE 250 SmallCap Index managed a marginal gain of 0.04%. Market breadth tilted decidedly toward the negative side, with 1,760 stocks advancing, 2,563 declining, and 243 remaining unchanged on the BSE.
Macroeconomic Indicators: Manufacturing PMI Cools
On the macroeconomic front, India’s economic pulse showed signs of moderation. India’s HSBC Manufacturing Purchasing Managers’ Index (PMI) eased to 52.8 in August 2026, down from 53.5 in July and revised downward from the preliminary estimate of 52.9. This reading indicates the softest improvement in the manufacturing sector’s overall health in five years. Although output and new orders continued to expand, the pace of growth for both decelerated to their weakest levels since August 2021, constrained by softer overall demand and challenging market conditions. International sales and export orders also witnessed growth, though the momentum moderated compared to July.
The softer demand environment directly impacted purchasing activity and inventory accumulation. Notably, manufacturing employment contracted for the first time in two-and-a-half years. Input buying expanded for the 62nd consecutive month, albeit at its weakest pace over that span. On the price front, input cost inflation softened to a six-month low, while output price inflation remained marginal, registering its slowest pace in 45 months. Despite these headwinds, overall business confidence crawled up to its highest level since May, though it remains historically subdued.
Global Cues and Commodities Market
Global markets offered little comfort to domestic investors. European shares declined and most Asian markets finished lower on Tuesday, pressured by an intensifying global bond market rout and escalating military hostilities in the Middle East. Wall Street closed lower on Monday, with the S&P 500 falling 0.33%, the Nasdaq Composite dipping 0.12%, and the Dow Jones Industrial Average dropping 0.70%. U.S. stock index futures pointed toward a negative opening, with Dow Jones futures sliding 295 points. Investors are also closely tracking upcoming economic milestones, notably the U.S. nonfarm payrolls report due on Friday, which is expected to offer crucial clues regarding the Federal Reserve’s future policy trajectory. Furthermore, market participants are weighing potential further rate hikes following hawkish remarks from Fed Chair Kevin Warsh.
Crude oil remained a dominant macroeconomic concern following renewed U.S.-Iran hostilities that revived fears of prolonged supply bottlenecks through the vital Strait of Hormuz. U.S. forces recently struck Iranian rocket launchers on Larak Island, prompting retaliatory strikes by Iran on U.S. military targets in Jordan. Brent crude for October 2026 settlement jumped $1.50, or 1.66%, to $91.99 a barrel, hovering well above the $90 threshold. In foreign exchange and debt markets, the partially convertible Indian rupee depreciated against the U.S. dollar, hovering at 95.9350 compared to its previous close of 95.2200. The yield on India’s 10-year benchmark federal paper ticked up 0.13% to 6.956, up from 6.947 previously, while the U.S. 10-year Treasury yield climbed 0.55% to 4.782. MCX Gold futures for the October 5, 2026 settlement fell 1.16% to Rs 1,52,635, and the U.S. Dollar Index (DXY) advanced 0.18% to 99.61.
Corporate Highlights, Auto Sales, and Block Deals
Corporate developments saw major activity across sectors, particularly in the auto and manufacturing domains. Steel Strips Wheels surged 14.94% after posting its second consecutive record monthly turnover in August 2026, with net turnover soaring 53.6% year-on-year to Rs 592.92 crore. Bajaj Auto rallied 1.90% after reporting a 28% increase in total vehicle sales to 5,35,764 units for August 2026. SML Mahindra climbed 6.05% on a 40% growth in monthly sales, touching 1,175 units. Conversely, Maruti Suzuki India fell 4.41% despite reporting a 21.3% growth in total sales at 219,220 units, driven primarily by domestic passenger vehicles. Tata Motors declined 1.50% despite a 49% surge in commercial vehicle sales to 44,411 units, while Escorts Kubota gained 0.60% following a 19.1% increase in tractor sales to 10,072 units.
In other corporate spotlights, Jindal Worldwide jumped 9.58% after its electric vehicle subsidiary, Jindal Mobilitric, announced plans to expand its retail footprint to roughly 100 showrooms by the end of FY28. Milky Mist Dairy Food was locked in a 5% upper circuit, reporting a phenomenal net profit of Rs 64.68 crore for Q1 FY27—nearly 9.91 times higher than the previous year—alongside a 43.6% surge in operational revenue to Rs 973.45 crore. Texmaco Rail & Engineering added 4.27% following a $135 million project award issued by Tsiko Africa Logistics and Barberry Holdings. Religare Enterprises rose 3.38% after prominent investor Ashish Dhawan hiked his stake by acquiring 36,00,238 shares worth approximately Rs 85.33 crore, elevating his total voting share capital holding to 7.41%. E2E Networks edged up 0.20% after signing a binding term sheet worth roughly Rs 1,000 crore with an Indian sovereign AI company to supply NVIDIA Blackwell cloud GPUs through June 2029.
Primary Market: New Listings and Ongoing IPOs
The primary market witnessed intense action with multiple debuts and active subscription phases. Symbiotec Pharmalab made a stellar debut, ending at Rs 1,095.95 on the BSE—a 10.93% premium over its issue price of Rs 988, after hitting an intraday high of Rs 1,173.80. Hy-Tech Engineers staged an even stronger listing, surging 42.62% to close at Rs 75.59 against its issue price of Rs 53. However, Skyways Air Services faced headwinds, listing at a discount and closing at Rs 125.65, down 8.95% from its issue price of Rs 138.
Several ongoing Initial Public Offerings (IPOs) saw robust investor demand by the close of September 1, 2026. EDS Software Solution witnessed massive traction, registering a subscription rate of 135.80 times for its issue priced between Rs 408 and Rs 429. Priority Jewels similarly sailed through, booked 100.25 times within a price band of Rs 190 to Rs 200. Other issues saw moderate progress: Rays of Belief was subscribed 1.15 times, Deepa Jewellers achieved 0.84 times subscription, and Purple Style Labs recorded a subscription of 0.24 times.
Disclaimer: This article is a journalistic rehash prepared for business reporting purposes. It is not investment advice. Readers are advised to consult certified financial professionals before making investment decisions.