Business & Finance

Sensex, Nifty Slip as Rising Crude Prices and U.S. Rate Hike Fears Dampen Investor Mood

By

Sensex, Nifty Slip as Rising Crude Prices and U.S. Rate Hike Fears Dampen Investor Mood
Photo: Among the 30 Sensex firms, Infosys, Tech Mahindra, HCL Tech, Tata Steel, Tata Consultancy Services, and UltraTech Cement were among the major laggards. | Photo Credit: PTI

Indian equity benchmarks Sensex and Nifty opened lower on Monday, September 7, 2026, as elevated crude oil prices, intensifying U.S.-Iran tensions, and fears of a possible U.S. interest rate hike dampened investor confidence. The BSE Sensex fell 172.77 points to 76,342.66 in early trade, while the NSE Nifty dropped 63.30 points to 23,832.60. Among the 30 Sensex constituents, Infosys, Tech Mahindra, HCL Tech, Tata Steel, Tata Consultancy Services, and UltraTech Cement were the top losers. Meanwhile, Eternal, Bharti Airtel, Bharat Electronics, and Larsen & Toubro posted gains. Brent crude, the global oil benchmark, rose 0.78% to trade at $97 per barrel. According to Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, a research analyst firm, Friday's stronger-than-expected U.S. jobs report reignited worries about a potential interest rate increase, while renewed hostilities in the U.S.-Iran conflict kept oil prices elevated, creating pressure on domestic market sentiment. He added that the upcoming U.S. inflation data, due Friday, September 4, would be a key factor influencing Federal Reserve rate expectations and broader global risk appetite. In Asian markets, South Korea's Kospi surged 3.36% and Japan's Nikkei 225 rose 1.83%, while Shanghai's SSE Composite and Hong Kong's Hang Seng index traded lower. U.S. markets closed in negative territory on Friday, September 4. Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, noted that crude oil remains the primary macroeconomic driver, with WTI crude trading around $91-92 per barrel amid escalating U.S.-Iran tensions near the Strait of Hormuz, raising concerns over potential supply disruptions. Foreign Institutional Investors (FIIs) sold equities worth ₹3,111.94 crore on Friday, September 4, according to exchange data. On that day, the Sensex had risen 362.57 points, or 0.48%, to close at 76,515.43, while the Nifty gained a modest 24.25 points, or 0.10%, to end at 23,897.70.

Related stories