Both the Nifty and the Sensex began the trading day on a flat note on September 1. The Nifty opened at 24,077.55 and the Sensex opened at 76,994.11. Most sectoral indices traded marginally lower in early trade. The Indian rupee opened at 95 to the dollar versus Monday’s close of 95.16 to the dollar. Crude oil prices remained firm and continued to trade over 91 dollars per barrel (at the time of filing this copy). following the fresh US-Iran escalation and US President Donald Trump stating that he has pledged to respond to Iranian strikes on US personnel in Jordan, stating “we’re going to hit them hard.”
G. Chokkalingam Head of Research at Equinomics Research told Times Now Digital, “domestic equity market is likely to be weak today as a majority of global markets saw some marginal falls. Oil prices also remain firm. IMD has predicted below-normal rainfall over country in September, which is final month of monsoon period. This doesn’t augur well as June to August period ended with cumulative rainfall deficit of 14%. Hence market is likely to remain weak in the short term. However, stock specific rally in the small and mid cap segment .
In the previous session, benchmark indices closed lower on Monday as fading hopes of a diplomatic breakthrough between the US and Iran kept investors cautious. The Nifty 50 closed at 24,080.40, down 95.25 points or 0.39 per cent, while the BSE Sensex ended at 76,957.27, declining 307.24 points or 0.40 per cent.
Escalating geopolitical tensions pushed crude oil prices higher and raised concerns over inflation and interest rates and weighed on investor sentiment. “Escalating tensions between the US and Iran have kept investors on edge, as fading prospects of a diplomatic breakthrough pushed crude oil prices and global bond yields higher,” Vinod Nair, Head of Research, Geojit Investments .