Indian equity markets witnessed significant volatility on September 3, with the NSE Nifty closing at 23,873.45, down 41 points or 0.17% after recovering from intraday lows. The BSE Sensex dropped 417.49 points or 0.55% to settle at 76,152.86. During intraday trading, the Sensex tumbled as much as 808.56 points, or 1.05% to 76,135.72, before recovering to close at the day's high. The sharp drop in the stock market wiped off nearly ₹5 lakh crore from the total market capitalisation of BSE within minutes from opening, dragging it down to ₹488 lakh crore. As per latest reports, GIFT Nifty September 2026 futures were down 36 points, indicating a negative opening for the Nifty 50. However, from the intraday low, the index recovered 127.65 points and closed at 23,914.45, showing some resilience despite ending below the crucial 24,000 psychological mark.
From a technical perspective, the RSI stands at 39.82, below the neutral 50 mark and its RSI-based moving average of 46.45, indicating continued weakness in momentum. The PCR at 1.17 suggests relatively supportive derivatives positioning which could aid stability near the current support zone. The 20-Day EMA is positioned at 24,195.56, while the 50-Day EMA stands at 24,172.72. The 100-Day EMA is at 24,193.65 and the 200-Day EMA is at 24,357.48. For Thursday's session, the immediate hurdle for the Nifty is placed near the previous session's low of 23,952.55, with the 100-DMA near 24,029 being the next important resistance level. A sustained move above 24,029 could improve sentiment and support a short-term recovery towards higher levels, while until the index reclaims this zone convincingly, any upside move is likely to face selling pressure. Latest technical analysis indicates Nifty remains vulnerable below 24,150, with a break of 23,950 potentially triggering further weakness toward 23,800.
On the outlook for Bank Nifty, Vaishali Parekh noted that the key benchmark index indicated a dip in the morning session, breaching below the 50-EMA level at 57,300 zone and the important support of 57,000 level, but witnessed some recovery to sustain above the 57,000 level. According to LiveMint reports, the Bank Nifty index would have the 100-period MA at the 56,500 zone as the major support from the current rate, which needs to be sustained to maintain the trend intact. The recovery was seen near a significant support zone where multiple technical factors came together, with the index taking support near the 38.2% Fibonacci retracement level of the recent upmove from the April 2 low, along with the July 29 gap area.
The decline was attributed to escalating US-Iran tensions, soaring crude prices and global bond stress that battered investor sentiment. According to Geojit Investments, the deepening global bond rout, amid escalating West Asia tensions and bets that central banks will need to tighten monetary policy, has gripped investor sentiment in fear. The latest strikes have pushed geopolitical tensions front and center, ending the uneasy calm of recent weeks and reviving inflation concerns, as the biggest U.S.-Iran exchange of fire since July fueled fears of a broader regional conflict. Brent crude was around $95.7 a barrel on Friday and is headed for a weekly gain of about 7%, as continued US-Iran tensions raised concerns over disruptions to energy supplies through the Strait of Hormuz. Tracking negative global cues, domestic equities saw volatile trade, with mid-caps bearing the brunt, while sectorally, auto and IT stocks dragged markets down, though gains in upstream oil & gas and value buying in banking stocks helped recovery from intraday lows.
Foreign portfolio investors (FPIs) sold shares worth ₹2,345.87 crore, while domestic institutional investors (DIIs) were net buyers to the tune of ₹4,977.46 crore in the Indian equity market on September 3, 2026, according to provisional data. This follows FPIs selling shares worth ₹5,532.96 crore in September so far through September 2, 2026, following net cash purchases of ₹17,366 crore in August 2026. SEBI announced it will review the methodology for determining settlement prices of derivative contracts following feedback received after the introduction of the Closing Auction Session (CAS) in the equity cash segment from August 3, 2026. The regulator plans to issue a consultation paper in about a week after monitoring the mechanism during its first month. Asian stocks traded mostly higher on Friday, 4 September 2026, following a strong rally on Wall Street as US Treasury yields eased and expectations of a September Federal Reserve rate hike moderated. US equities rallied sharply on Thursday, with the Dow Jones rising 1.18% to 53,686.11, the S&P 500 gaining 1.06% to 7,747.71 and the Nasdaq advancing 1.40% to 26,584.06.
