The Indian stock market ended Thursday’s trading session, September 3, with losses amid fears that global central banks, led by the US Federal Reserve, could raise interest rates to combat rising price pressures.
The sell-off in global bonds was another area of concern, as investors demanded higher compensation for holding government debt amid persistent inflation and rising debt levels following years of heavy government spending.
However, one positive trigger for the domestic market emerged as overseas investors turned net buyers, purchasing ₹6,688 crore worth of Indian equities on Wednesday even as the benchmark indices declined.
Analysts suggested that the sharp gap-down decline could present a buying opportunity rather than a reason for investors to reduce their exposure.
Indian stock market today
The Nifty ended the session with a decline of 0.17% at 23,873, while the Sensex finished 0.55% lower at 76,152. Both key indices have extended their losing streak to a fourth consecutive session.
The broader markets, however, recovered from their earlier losses, with the Nifty Smallcap 100 index surging 1.40%, while the Nifty Midcap 100 index gained 0.27%.
Sectorally, buying emerged in realty, media, chemicals, and private bank stocks, although these gains were partly offset by selling pressure in IT, FMCG, auto, and pharma stocks.
Meanwhile, in the commodity market, crude oil prices halted their three-day rally, falling 1.5% to $94.20 a barrel after US President Donald Trump said renewed attacks on Iran would likely be short-lived and reiterated his claim that the US controls the Strait of Hormuz.
The pullback in crude prices also eased pressure on Treasuries, which held on to gains from the previous session. The yield on the US 10-year Treasury fell to around 4.77% after reaching its highest level since late November.
The conflict in the region resumed over the weekend after the American military reportedly struck Iranian rocket launchers on an island in the Strait of Hormuz, while Tehran retaliated by targeting US military bases in the UAE and Jordan.
Asian markets trade mixed
Among other regional markets, Tokyo’s Nikkei 225 fell 0.2% to 64,214.48. South Korea’s Kospi, meanwhile, rose 0.3% to 6,579.48. Samsung Electronics slipped 0.2%, while memory chipmaker SK Hynix declined 1.1%.
In Hong Kong, the Hang Seng edged 0.6% lower to 25,167.96, while mainland China’s Shanghai Composite index gained less than 0.1% to 3,942.09.
Elsewhere, Australia’s S&P/ASX 200 gained 0.5% to 9,020.10. Taiwan’s Taiex fell 0.7%.
