The escalation in the US-Iran conflict is rattling global markets, with crude oil prices approaching $100 a barrel amid attacks on warships and oil tankers and disruptions to shipping through the Strait of Hormuz. US stocks tumbled on Tuesday, while Indian markets are set for another weak opening.
Iran fired a missile at a US destroyer, while the US attacked five Iranian oil tankers, according to reports. Iran also targeted a US base in Jordan. The Iran-aligned Houthi militia continues to carry out attacks in Yemen and Saudi Arabia, while retaliatory strikes are also intensifying.
The spike in crude prices comes alongside growing expectations of a US Federal Reserve rate hike next Wednesday, adding to pressure on risk assets.
Asian markets are mostly higher this morning, but Indian equities are signalling a weak opening. Indian banks and IT stocks also declined in the US ADR market.
Gold, which fell about 1 percent on Tuesday, recovered 0.45 percent this morning to $4,377 an ounce.
Gift Nifty, traded at GIFT City, closed at 23,630 on Tuesday night. It rose to 23,683 in early trading today before retreating.
The movement suggests that Indian markets could open with significant losses.
Rising crude prices and the worsening US-Iran conflict triggered a sharp sell-off in US equities on Tuesday. Expectations of a rate hike next week also weighed on sentiment.
The yield on 10-year US Treasury bonds crossed 4.8 percent. Concerns over the US-Canada trade dispute added to the pressure on the Dow Jones.
Dow Jones: 52,786.07, down 628.18 points or 1.18 percent
S&P 500: 7,673.52, down 45.08 points or 0.58 percent
Nasdaq Composite: 26,421.41, down 85.58 points or 0.32 percent
Gains in AI infrastructure-related stocks, including Intel, AMD, Qualcomm and Broadcom, limited the Nasdaq's decline. Intel surged 9.5 percent.
US stock futures were mixed this morning.
Dow futures: down 20 points or 0.04 percent
S&P 500 futures: up 6 points or 0.07 percent
Nasdaq futures: up 53 points or 0.18 percent
Indian stocks traded in the US ADR market came under pressure during regular trading on Tuesday, although some recovered in after-hours trading.
HDFC Bank fell 3.02 percent during regular trading and gained 0.04 percent after hours to close at $22.49.
ICICI Bank fell 2.54 percent and later gained 1.51 percent to close at $29.98.
Infosys plunged 4.87 percent before recovering 0.51 percent to close at $11.19.
Wipro declined 4.42 percent before gaining 1.12 percent to close at $1.749.
European equities were mixed on Tuesday.
Stoxx 600: lower
UK benchmark: lower
France: higher
Germany: largely unchanged
Rising fuel prices and the advance of the far right in Germany continued to weigh on investor sentiment.
Asian markets are mostly higher this morning.
Japan's Nikkei: up 0.75 percent
Australia's market: down 0.25 percent
South Korea's Kospi: up 1.40 percent
Hong Kong's Hang Seng: moved into positive territory after falling 0.60 percent earlier
Taiwan: up 0.80 percent
Shanghai: up 0.15 percent
The prospect of crude oil climbing towards $100 a barrel and a possible US rate hike are weighing on Indian equities. Concerns that higher crude prices could put further pressure on the rupee are also adding to market anxiety.
Foreign investors continued to sell, while domestic institutional investors remained buyers.
Banks, financial companies, IT stocks and oil companies declined on Tuesday. Defence stocks were the standout performers after the government accelerated the awarding of contracts worth ₹1.1 lakh crore for advanced defence equipment.
Mishra Dhatu Nigam surged 14 percent. Data Patterns, Hindustan Aeronautics, MTAR Technologies, Apollo Micro Systems and Axiscades Technologies also posted strong gains.
Foreign investors were net sellers of ₹123.19 crore in the cash market, while domestic institutional investors made net purchases worth ₹1,349.64 crore.
Sensex: 75,577.58, down 555.23 points or 0.73 percent
Nifty 50: 23,635.10, down 144.05 points or 0.61 percent
Bank Nifty: 56,777.55, down 310.75 points or 0.54 percent
Nifty Midcap 100: 62,915.80, up 129.65 points or 0.21 percent
Nifty Smallcap 100: 20,133.75, up 33.55 points or 0.17 percent
Market breadth remained weak.
BSE: 2,009 stocks advanced and 2,384 declined
NSE: 1,697 stocks advanced and 1,819 declined
IDBI Bank
The proposed sale of the government's and LIC's 30 percent stake each in IDBI Bank to Canadian investment firm Fairfax is moving towards the final stage, according to reports.
The reported offer price is ₹81 a share, significantly below the prevailing market price. IDBI Bank fell 10.5 percent on Tuesday to ₹81.22.
IIFL Finance
Fairfax is reportedly considering selling its investment in IIFL Finance, with private equity firm Blackstone said to be interested in acquiring the stake.
IIFL Finance fell about 4.5 percent.
CSB Bank
Fairfax has a significant stake in CSB Bank. It remains unclear whether the stake will be sold or whether CSB Bank could be merged with IDBI Bank.
CSB Bank fell 2.54 percent on Tuesday and has declined about 6 percent in the past week.
NSE IPO
The IPO of the National Stock Exchange is expected to take place this month. General Insurance Corporation of India, which holds a significant stake in NSE, is also expected to sell shares in the offering.
Shares of New India Assurance and IFCI, which had gained sharply in recent sessions on expectations surrounding the NSE IPO, fell by up to 12 percent on Tuesday as investors booked profits.
Raymond
Raymond Ltd surged 11 percent as the company prepares for a major fund-raising exercise aimed at expanding its presence in defence and aerospace.
Following the separation of its lifestyle and real estate businesses, Raymond is focusing on precision technology engineering, auto components, aerospace and defence.
Gold prices remain under pressure amid concerns over higher interest rates.
Gold fell more than 1 percent on Tuesday and remained volatile this morning. Markets are likely to remain choppy until the release of US retail inflation data on Friday and the Federal Reserve's interest-rate decision next Wednesday.
The market currently sees a 58 percent probability of a Fed rate hike.
Gold: $4,356.70 an ounce, down $50.40 on Tuesday
Early Wednesday price: $4,377
22-carat gold in Keralam: ₹1,13,920 a sovereign, up ₹880
Silver: $65.90 an ounce; early Wednesday $66.20
Platinum: $1,823
Palladium: $1,334
Rhodium: $9,050
International rubber prices edged lower.
Bangkok RSS 1: $282.90 per quintal
Bangkok RSS 3: $279.40 per quintal
Keralam: ₹27,200 per quintal
The Association of Natural Rubber Producing Countries expects global natural rubber production to reach 15.28 million tonnes in 2026, against consumption of 15.36 million tonnes.
Most major industrial metals gained on Tuesday, except zinc and lead.
Copper jumped 1.35 percent to $14,736.65 a tonne. Its record price is $14,851, reached in August.
Fear of higher US tariffs has prompted American companies and stockists to build inventories, supporting copper prices. Expectations of strong growth in copper demand in the coming years are also supporting the market.
Aluminium gained 0.35 percent to $3,319 a tonne. Nickel and tin advanced, while lead and zinc declined.
Cocoa prices fell 4.22 percent to $5,927 a tonne.
Production in the 2026-27 season is expected to decline by 20 percent in Ivory Coast and 13 percent in Ghana. However, Ivory Coast's exports rose 19 percent in August, while stocks on the ICE exchange also increased.
Arabica coffee: down 1.91 percent to $2.899 a pound
Palm oil: down 0.04 percent to 4,976 Malaysian ringgit a tonne
The US Dollar Index declined again to 98.79.
Euro: $1.1628
Pound: $1.3542
Japanese yen: 153.79 per dollar
Chinese yuan: 6.71 per dollar
US 10-year Treasury yield: 4.79 percent
The rupee fell sharply against the dollar on Tuesday, with higher crude prices emerging as a major threat.
The dollar gained 33 paise to close at ₹94.82.
Dollar: ₹94.82
Chinese yuan: ₹14.13
Euro: ₹110.28
The dollar was also quoted at ₹94.82 in offshore forward trading this morning.
The intensifying US-Iran conflict and disruption to shipping through the Strait of Hormuz have pushed crude oil prices close to $100 a barrel.
Brent crude: $97.92 a barrel at Tuesday's close, up $0.92
Brent crude early Wednesday: $99.39
WTI crude: $94.42
Cryptocurrencies continued to move lower.
Bitcoin: below $78,700
Ether: below $2,500
Solana: below $103.50
(September 8, Tuesday)
Sensex: 75,577.58 | -0.73%
Nifty 50: 23,635.10 | -0.61%
Bank Nifty: 56,777.55 | -0.54%
Nifty Midcap 100: 62,915.80 | +0.21%
Nifty Smallcap 100: 20,133.75 | +0.17%
Dow Jones: 52,786.07 | -1.18%
S&P 500: 7,673.52 | -0.58%
Nasdaq: 26,421.41 | -0.32%
Dollar: ₹94.82 | +₹0.33
Gold (ounce): $4,356.70 | -$50.40
Gold (sovereign): ₹1,13,920 | +₹880
Brent crude: $97.92 | +$0.92