Global markets are beginning the week on a relatively positive note despite continuing geopolitical tensions in Iran, Yemen and Ukraine. Crude oil prices have fallen again, Asian equities are mostly higher and US stock futures are trading in the green.
Markets are closely watching a series of high-level diplomatic engagements this week. The focus is particularly on the expected meeting between US President Donald Trump and Chinese President Xi Jinping, which could offer clues on the direction of trade relations between the world’s two largest economies.
Iranian President Masoud Pezeshkian is also in the US for the UN General Assembly, adding to expectations of increased diplomatic activity around the West Asian conflict.
GIFT Nifty, which closed at 23,300.50 on Thursday night, moved up to around 23,350.50 in early trade, indicating a cautious start for Indian equities.
Trump has indicated some willingness to meet Iranian President Masoud Pezeshkian during the UN General Assembly meetings in New York. Pakistan’s interior minister also visited Tehran as diplomatic efforts intensified amid continuing regional tensions.
Chinese President Xi Jinping is expected to meet Trump in Washington this week. Ahead of the meeting, Chinese Vice-Premier He Lifeng held talks with US Treasury Secretary Scott Bessent. Bessent described the discussions positively, raising hopes that the Trump-Xi meeting could result in progress on some trade and economic issues. Several Gulf leaders attending the UN meetings are also expected to meet Trump.
Markets are watching these diplomatic developments closely for any signs of easing in geopolitical and trade tensions.
US equities ended mixed on Friday. The Nasdaq and S&P 500 moved higher, while the Dow Jones Industrial Average closed lower.
Higher US Treasury yields continued to weigh on investor sentiment. Bond prices weakened and yields moved higher following the latest Federal Reserve rate action.
For the week, the Dow lost 1.7% and the S&P 500 declined 0.1%. The Nasdaq, however, gained 0.7%. The Dow Jones fell 94.40 points, or 0.18%, on Friday to close at 51,682.64.
The S&P 500 gained 12.74 points, or 0.17%, to finish at 7,650.50. The Nasdaq Composite climbed 104.25 points, or 0.40%, to 26,522.55.
US stock futures were trading firmly higher in early trade. Dow futures gained around 122 points, or 0.23%. S&P 500 futures were up 30 points, or 0.39%, while Nasdaq futures advanced about 202 points, or 0.67%.
Indian ADRs traded mixed in New York on Friday. HDFC Bank gained 2.21% during regular trading and added another 0.60% in extended trade to close around $23.30. ICICI Bank declined 0.11% during the regular session and slipped another 0.39% in after-hours trade to $28.04.
Infosys fell 2.26% during regular trading and remained largely unchanged in extended trade at $10.82. Wipro declined 1.19% during the regular session but recovered 0.60% later to $1.67.
European equities closed lower on Friday as concerns over energy supplies and inflation returned to the forefront. Investors fear that renewed disruptions to crude oil supplies could push inflation higher and keep interest rates elevated for longer.
Several major European indices fell more than 1%. Banking shares lost as much as 3%, while automobile majors including Mercedes-Benz, BMW and Volkswagen declined by up to 5%.
Asian markets are largely trading in positive territory. Japan’s Nikkei gained around 1.5%, while South Korea’s Kospi also advanced 1.5%. Hong Kong’s Hang Seng rose around 0.5%. Taiwan gained 0.85%, while the Shanghai Composite was up around 0.5%. Australia bucked the trend, slipping around 0.35%.
The Closing Auction Session once again significantly altered the final picture of the Indian market on Friday.
The impact was particularly visible in the Sensex. At around 3.15 pm, the benchmark was trading 245.38 points higher. Following the closing auction, however, it ended the session 19.63 points lower.
Information technology was the worst-performing sector, declining 1.03%. Consumer durables, FMCG and automobile stocks also ended lower. Tourism, metals, realty, capital markets, financial services, banking, media, oil and gas, healthcare and pharmaceutical stocks posted gains.
The broader market outperformed, with both mid-cap and small-cap indices recording strong gains.
Market breadth was positive. On the BSE, 2,630 stocks advanced while 1,703 declined. On the NSE, 2,373 shares gained and 1,145 ended lower.
Foreign institutional investors continue to withdraw money from Indian equities. Their net outflow so far in September stands at around ₹20,974 crore. Foreign investors have pulled nearly ₹2.5 lakh crore from Indian equities so far in 2026, compared with around ₹1.7 lakh crore during 2025. However, FIIs turned net buyers in the cash segment on Friday, purchasing shares worth a net ₹599.54 crore.
Domestic institutional investors were also net buyers, with purchases worth ₹1,019.69 crore.
The Sensex declined 19.63 points, or 0.03%, to close at 74,294.96. The Nifty 50 gained 75.80 points, or 0.33%, to finish at 23,346.40. Bank Nifty added 302.95 points, or 0.54%, to close at 56,358.70. The Nifty Midcap 100 jumped 759.15 points, or 1.24%, to 62,191.25. The Nifty Smallcap 100 rose 340 points, or 1.74%, to end at 19,875.70.
Tata Group
The dispute within the Tata Group is moving towards a legal battle. Tata Trusts is expected to challenge decisions taken by the Tata Sons board in court. The legal and governance tussle could add to uncertainty surrounding the group and may keep listed Tata companies in focus.
Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders has signed a memorandum of understanding with National Shipbuilding and Heavy Industries Park AP for setting up a shipbuilding facility at Dugarajapatnam in Andhra Pradesh.
The proposed project could involve an investment of around ₹15,000 crore.
Lenskart Solutions
Platinum Jasmine Trust, an anchor investor in Lenskart Solutions, is expected to sell shares worth around ₹2,047.4 crore at an average price of ₹685.42 per share.
Welspun Enterprises
Welspun Enterprises has secured a pollution-control project worth ₹351.24 crore in Ahmedabad.
Nestlé India
Food safety authorities have initiated legal proceedings in connection with Nestlé India’s NAN PRO and LACTOGEN PRO products.
RVNL
Rail Vikas Nigam Ltd has received a railway construction contract worth around ₹405 crore from East Coast Railway.
Gold continues to remain firm despite higher interest rates in major economies. Prices eased initially in early trade before recovering. Investors appear to believe that higher interest rates may not be sufficient to significantly slow government borrowing.
Expectations that central banks will continue accumulating gold as a safe-haven asset are also supporting prices. French bank Société Générale expects gold to reach $4,750 an ounce by the end of 2026, $5,000 by April 2027 and $5,250 by June 2027.
Gold rose $36.30, or 0.84%, on Friday to close at $4,379 an ounce.
In early trade, prices slipped towards $4,365 before recovering to around $4,384.
In Kerala, the price of 22-carat gold rose ₹1,160 per sovereign on Friday to ₹1,13,240. On Saturday, the price increased another ₹1,040 to ₹1,14,280 per sovereign.
Silver gained 1.60% on Friday to close at $66.38 an ounce and moved up to around $66.44 in early trade.
Platinum was quoted around $1,795, palladium at $1,286 and rhodium at $8,500.
A stronger US dollar pushed international rubber prices lower on Friday. In Bangkok, RSS-1 was quoted at $278.80 per quintal and RSS-3 at $277. In Kerala, rubber prices remained around ₹27,400 per quintal.
Copper prices surged on Friday, recovering losses recorded over the previous few sessions. Stronger Chinese demand supported the rally. Copper jumped 3.77% to $14,528.75 a tonne. Aluminium slipped 0.08% to $3,281.55 a tonne.
Lead, zinc and tin moved higher, while nickel declined.
Cocoa prices fell another 7.71% to $5,327 a tonne, the lowest level since mid-August. Exports from Ivory Coast increased 18% last month to 2.14 million tonnes. Stocks on the ICE exchange climbed to a two-year high of 3.42 million bags.
Arabica coffee gained 1.45% to $2.805 a pound. Palm oil rose 1.70% to 4,898 Malaysian ringgit a tonne.
The US Dollar Index ended Friday broadly unchanged at 100.22 after strengthening following the latest interest-rate move. The index briefly moved up to around 100.30 in early trade before easing.
The euro strengthened to around $1.1482 and the British pound to $1.3388. The Japanese yen weakened to around 156.74 against the dollar. The Chinese yuan remained around 6.71 to the dollar.
The yield on the benchmark 10-year US Treasury climbed to around 5.007%.
The Indian rupee ended Friday marginally higher following a volatile session. The dollar declined six paise to close at ₹95.87. In the offshore forward market, the dollar was trading around ₹95.92 in early trade.
The Chinese yuan was quoted around ₹14.29, while the euro strengthened to ₹110.41.
Crude oil prices are declining despite continued geopolitical tensions in West Asia. Yemen’s Houthis have intensified attacks against Saudi Arabia, while Iran has also issued fresh warnings.
There are concerns that Europe may struggle to secure adequate crude oil and natural gas supplies for the coming winter. Damage to Russian refining infrastructure has also resulted in Russia sourcing diesel and petrol from countries including India.
Despite these supply concerns, crude oil prices continue to move lower. Brent crude fell $0.95 on Friday to close at $103.87 a barrel. In early trade, Brent dropped another 2% to around $101.54.
West Texas Intermediate crude was trading around $98.09 a barrel.
Cryptocurrencies strengthened over the weekend. Bitcoin moved above $81,750. Ether was trading above $2,680, while Solana climbed above $112.50.
(September 18, Friday)
Sensex: 74,294.96 | -0.03%
Nifty 50: 23,346.40 | +0.33%
Bank Nifty: 56,358.76 | +0.54%
Nifty Midcap 100: 62,191.25 | +1.24%
Nifty Smallcap 100: 19,875.70 | +1.74%
Dow Jones: 51,682.64 | -0.18%
S&P 500: 7,650.50 | +0.17%
Nasdaq: 26,522.55 | +0.40%
US dollar: ₹95.87 | -₹0.06
Gold: $4,379 an ounce | +$36.30
Kerala gold: ₹1,13,240 per sovereign | +₹1,160
September 19: ₹1,14,280 | +₹1,040
Brent crude: $103.87 a barrel | -$0.95