The Indian stock market is expected to open lower on Wednesday, 2 September, amid weak global cues and escalating US-Iran tensions that have pushed oil prices to near-six-week highs. According to The Hindu BusinessLine, GIFT Nifty futures were at 24,033.5 points as of 7:38 AM IST, indicating a negative start for the Nifty 50 index, which closed at 24,055.8 on Tuesday. The domestic market benchmarks have already shown weakness, with Indian benchmarks Nifty and Sensex falling 0.5% and 0.4% respectively over the last two sessions, as global woes overpowered upbeat economic growth data.
Brent crude futures surged as much as 5.91% to hit an intraday high of $96.99 per barrel, triggering a drop in Asian markets and lifting global bond yields on worries of a near-term US rate hike, which could make emerging markets less attractive for global investors. As reported by The Hindu BusinessLine, the US said it had launched a series of airstrikes against targets in Iran overnight, prompting an Iranian response in a renewed escalation of tensions in West Asia. A prolonged disruption to energy flows through the region could keep oil prices elevated, sustain inflationary pressures and reinforce expectations of tighter global monetary conditions, weighing on risk assets. President Donald Trump said that he is not trying to force Iran back to the negotiating table, dismissing reports that Washington is seeking a new agreement with Tehran, stating "I like our position now much better, with almost total control of the Hormuz Strait, and their economy totally collapsing."
US markets extended their slide on Tuesday as the global bond selloff deepened and crude prices spiked amid fading hopes for a near-term solution to the US-Iran conflict. As reported by Reuters, all three major US stock indexes closed decisively lower, with the Dow Jones Industrial Average falling 418.97 points, or 0.79%, to 52,766.93, the S&P 500 dropping 54.67 points, or 0.71%, to 7,631.47, and the Nasdaq Composite crashing 271.11 points, or 1.03%, to 26,099.77. Japan's Nikkei and Korea's Kospi crashed up to 3% amid rising global bond yields, fresh tensions between the U.S. and Iran, and higher oil prices. The yield on the 10-year Treasury rose to 4.79% from 4.75% late Monday, up from as low as 4.20% at the beginning of 2026. The U.S. Labor Department's JOLTS report showed jobs market churn slowing, while Purchasing Managers' Index data suggested factory activity is losing momentum.
Bond yields are surging globally as investors jump into a bond-selling spree amid growing inflation concerns driven by higher energy prices and ballooning government debt. According to Mint, the US 10-year bond yield jumped to 4.81% to a multi-year high, while Japan's 10-year bond yield reached 3% for the first time since 1996. U.K. 10-year government bonds- Gilts- jumped to 5.23%, their highest level since June 2008. The US dollar index hovered near its two-week high of 99.73. Financial markets are pricing in about a 68.2% likelihood that the Fed will implement a 25-basis-point rate hike at the end of its September policy meeting, up from 39.6% a week ago, according to CME's FedWatch tool.
Among individual stocks, Gland Pharma will be in focus after the US drug regulator concluded its inspection at the drugmaker's Visakhapatnam facilities with zero observations. The Hindu BusinessLine reports that Coal India is selling a 10% stake in Mahanadi Coalfields through the fully owned subsidiary's initial public offering, with draft papers filed with the market regulator showing the details. Engineering firm EMS could move after securing an order worth ₹219 crore ($23 million). Shares of Ujjivan Small Finance Bank will be watched after the lender said its CEO Sanjeev Nautiyal stepped down from his role due to health issues, with the banking regulator approving the appointment of executive director Carol Furtado as interim CEO from September 1. Foreign institutional investors (FIIs) bought shares worth ₹1,143.38 crore on Tuesday while domestic institutional investors bought stocks worth ₹1,846.94 crore, as per NSE data.
