Global markets remain under pressure amid growing concerns that the US-Iran war could intensify and spread further. Expectations of a US Federal Reserve rate hike on September 16 have also strengthened. Crude oil is trading above $97 a barrel, while US futures are pointing lower.
Gift Nifty, traded at GIFT City, closed at 23,797 on Monday night and slipped to 23,786 in morning trade before recovering slightly. The signals point to a weak opening for Indian markets today.
Canada is set to double tariffs on US products today and impose duties on several items that currently face no tariffs.
The move follows the failure of US-Canada trade talks last month. On August 22, US President Donald Trump imposed a 50 percent tariff on $20 billion worth of Canadian imports. In response, the government of Canadian Prime Minister Mark Carney raised tariffs on a similar value of US imports. The latest tariff increases will come on top of those measures.
US markets were closed on Monday for Labour Day.
On Friday, the Dow Jones Industrial Average fell 271.86 points, or 0.51 percent, to close at 53,414.25. The S&P 500 declined 29.11 points, or 0.38 percent, to 7,718.60, while the Nasdaq Composite fell 77.07 points, or 0.29 percent, to 26,506.99.
US stock futures moved lower today. Dow Jones futures were down 348 points, or 0.65 percent, while S&P 500 futures fell 13 points, or 0.17 percent. Nasdaq futures, however, gained 92 points, or 0.31 percent.
European markets moved in different directions on Monday. Germany and the UK closed lower, while the Stoxx 600 and French benchmark index posted marginal gains. Rising fuel prices remain a concern for investors.
Asian markets are trading mixed today. Japan's Nikkei rose 0.32 percent, while Australia's market fell 1 percent. South Korea's Kospi gained 1.25 percent.
Hong Kong's Hang Seng declined 0.65 percent and Taiwan's benchmark index fell 0.20 percent. Shanghai gained 0.15 percent.
After gaining on Friday, Indian markets declined again on Monday, weighed down by crude oil prices above $97 and growing expectations of a US rate hike.
IT, media, realty, metal and oil stocks led the decline. IT stocks fell more than 3 percent amid concerns that higher US interest rates could lead companies to cut technology spending. Pharma and healthcare were the only sectors to close higher.
Foreign investors turned buyers on Monday, making net purchases worth ₹280.13 crore in the cash market. Domestic institutional investors also remained buyers, with net purchases of ₹566.76 crore. Foreign funds had been net sellers last week.
The Sensex fell 382.62 points, or 0.50 percent, to close at 76,132.81. The Nifty 50 declined 118.55 points, or 0.50 percent, to 23,779.15. Bank Nifty fell 281.35 points, or 0.49 percent, to 57,088.30.
The Nifty Midcap 100 declined 292.90 points, or 0.46 percent, to 62,786.15, while the Nifty Smallcap 100 edged up 4.75 points, or 0.02 percent, to 20,100.20.
Market breadth remained weak. On the BSE, 1,925 stocks advanced while 2,571 declined. On the NSE, 1,490 stocks gained and 2,074 fell.
Adani Power has received approval to acquire GVK Energy, which operates a 330 MW hydropower project in Uttarakhand. GVK Energy was undergoing insolvency proceedings.
Pharmaceutical manufacturer Neuland Laboratories has initiated steps to acquire 200 acres at Aura Industrial City in Kakinada, Andhra Pradesh, to set up a new manufacturing unit.
LIC's first-year premium rose 45.3 percent in August to ₹23,275 crore. HDFC Life reported an 17.8 percent increase, while ICICI Prudential Life and SBI Life posted growth of 9.9 percent and 2.8 percent, respectively.
Gold fell to $4,385 an ounce on Monday amid concerns over interest rates before recovering to close above $4,400. It ended the day down 0.5 percent at $4,407.10 an ounce. The metal rose to $4,437 in morning trade today before easing slightly.
In Keralam, 22-carat gold fell ₹480 per sovereign on Monday to ₹1,13,040.
Silver closed at $66.26 an ounce on Monday and rose to $66.50 in morning trade today.
Platinum was at $1,834, palladium at $1,387 and rhodium at $8,925.
International rubber prices continued to rise. In Bangkok, RSS 1 rose to $283.70 per quintal and RSS 3 to $280.20.
The price in Keralam remained at ₹27,200 per quintal. The Association of Natural Rubber Producing Countries expects global rubber production at 15.28 million tonnes this year, against consumption of 15.36 million tonnes.
Major industrial metals, except nickel, gained on Monday.
Copper rose 1.17 percent to $14,539.65 a tonne, while aluminium gained 0.46 percent to $3,307.50. Lead, zinc and tin also advanced, while nickel declined.
Cocoa prices fell 0.21 percent to $6,175.18 a tonne.
Production in Ivory Coast and Ghana is expected to decline by 20 percent and 13 percent, respectively, in the 2026-27 season. However, Ivory Coast's cocoa exports rose 19 percent in August, while inventories on the ICE exchange also increased.
Arabica coffee fell 0.92 percent to $2.929 a pound.
Palm oil rose 0.99 percent to 4,978 Malaysian ringgit a tonne.
The US Dollar Index fell 0.35 percent to 98.83.
The euro strengthened to $1.1627 and the pound to $1.3543. The Japanese yen stood at 153.71 to the dollar, while the Chinese yuan remained at 6.71 to the dollar.
The yield on 10-year US Treasury bonds rose to 4.79 percent.
The rupee ended Monday largely unchanged after a period of mild volatility. The dollar closed at ₹94.49.
In the overseas forward market, the dollar was also quoted at ₹94.49 this morning.
The Chinese yuan stood at ₹14.07 and the euro at ₹109.74.
Crude oil prices rose but remained around $97 a barrel.
Brent crude closed at $97.00 a barrel and rose to $97.06 in morning trade. WTI crude was at $92.38.
Cryptocurrencies remained volatile. Bitcoin slipped below $79,300, while Ether fell below $2,500 and Solana below $104.
Sensex 76,132.81 -0.50%
Nifty 50 23,779.15 -0.50%
Bank Nifty 57,088.30 -0.49%
Midcap 100 62,786.15 -0.46%
Smallcap 100 20,100.20 +0.02%
Dow Jones 53,414.25 0.00%
S&P 7,718.60 0.00%
Nasdaq 26,506.99 0.00%
Dollar ₹94.49 ₹0.00
Gold (ounce) $4,407.10 -$24.00
Gold (sovereign) ₹1,13,040 -₹480
Brent crude $97.00 +0.72%
