Indian equity markets ended lower on Monday, September 7, 2026, with Nifty 50 closing at 23,779.15, declining 118.55 points (0.50%) and hitting its lowest closing level in nearly two months. The index opened 14 points lower and remained under pressure throughout the session, hitting an intraday low of 23,633 before recovering around 20 points during the closing auction. According to Business Standard, this latest fall takes the Nifty more than 1,000 points below its early-August swing high of 24,774, marking a significant correction from recent highs. The Sensex closed at 76,132.81, declining 382.62 points (0.50%). Among broader market indices, the Nifty Midcap 100 declined 0.46% while the Nifty Smallcap 100 edged up 0.02%, indicating selective buying in the broader market. Market breadth remained negative with 2,082 stocks ending lower and 2,084 stocks in the red out of 3,698 stocks traded on the NSE, while 105 stocks remained unchanged. The Nifty is now 3.2% lower than it was on August 7 and 9.8% below its 52-week high of 26,373.2.
Sectorally, all indices ended in the red except pharma and healthcare, with IT and media stocks witnessing the sharpest selling pressure, with Nifty IT and Nifty Media indices declining 2.3% and 3% respectively. According to Business Standard, the Nifty IT index took the brunt of the selloff, closing 2.28% lower at 29,995.2, while Infosys fell 3.76% to ₹1,087.5, wiping out about ₹17,243 crore of market value in a single day. Infosys accounts for 27% of the IT index, making it a major drag on the sector. Tech Mahindra, Mphasis, and Wipro were down around 2% each, while Tata Consultancy Services (TCS) fell 1.5%. The Nifty IT index has fallen 4.9% in a month and 13.4% year-on-year (Y-o-Y), making it the weakest major sector on a 12-month basis after fast-moving consumer goods, which is down 19% over the same period. The sector currently accounts for 8.5% of the Nifty 50 index, making it particularly sensitive to geopolitical tensions and crude oil price movements.
Upstream oil producers like ONGC and Oil India could benefit from higher crude realisations, while oil marketing companies including Indian Oil, BPCL, and HPCL may face margin pressure if elevated crude prices are not fully passed on to consumers. As reported by Upstox, higher fuel costs are also negative for paints and tyre companies, including Asian Paints, Berger Paints, Apollo Tyres and MRF, as crude-linked inputs account for a significant portion of their costs. Aviation stocks such as IndiGo and SpiceJet could remain under pressure as sustained rise in crude prices increases aviation turbine fuel (ATF) costs. According to CNBC TV18, Brent crude rose towards $97.5 a barrel on Monday as the latest escalation between the US and Iran heightened concerns around oil supplies through the key shipping route. The rise follows escalating tensions between the US and Iran, with Iran's Islamic Revolutionary Guard Corps indicating plans to establish a restricted zone outside the Strait of Hormuz, raising concerns over possible disruptions to oil shipments through this critical energy route. Brent and WTI had already gained around 8% and 10% respectively last week, marking their strongest weekly gains since July. Gold and silver also eased, with spot gold declining around 0.5% to nearly $4,410 an ounce and silver slipping to $65.7.
The breach of 23,800 assumes significant technical significance, with analysts now watching the 23,600-23,700 zone for the next potential support. According to CNBC TV18, Nagaraj Shetti of HDFC Securities sees the underlying trend remaining negative, with the Nifty showing lacklustre movement. He recommends the 23,600 zone as the next downside level to watch, while 24,000 remains the immediate resistance. Osho Krishan of Angel One sees potential support in the 23,650-23,600 zone, followed by the more crucial 23,500 mark, recommending a cautious approach. Nandish Shah of HDFC Securities noted that the Nifty has breached its previous swing low of 23,786, opening the way towards the next support around 23,600. On the upside, 23,900 is likely to act as the first resistance, followed by the 24,000-24,050 zone. Rupak De of LKP Securities expects the index to remain under pressure in the near term, with 23,700-23,620 emerging as the next potential downside zone. The market is worried that the Nifty's close below 23,800 could open the door to a new trading range below 23,750, with near-term direction remaining heavily dependent on crude prices, US yields, Federal Reserve commentary, and the upcoming mega IPOs of Reliance Jio and the National Stock Exchange (NSE).
The banking benchmark also ended lower on Monday, though Bank Nifty has remained range-bound over the past 24 trading sessions, moving within a roughly 1,254-point range and lacking a clear directional trend. According to SBI Securities, the 57,500-57,600 zone is likely to act as immediate resistance, while 56,800-56,700 remains an important support area. Among Nifty 50 stocks, Apollo Hospitals, Larsen & Toubro and Coal India were the top gainers, while Infosys, SBI Life and HDFC Life emerged as the biggest laggards. The primary market remains active with 12 IPOs set to open this week, collectively targeting around ₹7,000 crore, making it a busy week for the primary market despite the cautious tone in the secondary market. The 57th GST Council meeting has been rescheduled to October 7 from September 12, with the change coming amid the scheduling clash with the BRICS Leaders' Summit in New Delhi. According to V K Vijayakumar, chief investment strategist at Geojit Investments, "Apart from the elevated crude prices and geopolitical tensions, the ongoing IPO boom in India has impacted the stock market. The focus is now on the booming primary market. With two mega IPOs — NSE and Jio — expected to hit the market this month, all attention is on the primary market."
According to reports from Upstox, JSW Steel saw its consolidated crude steel production rising 3% year-on-year (YoY) to stand at 24.65 lakh tonnes in August 2026, compared with production of 23.82 lakh tonnes in the same month of the preceding year. The company's capacity utilisation for its Indian operations stood at 88% in August of the current calendar year. NMDC alone caters to the country's 20% need of iron ore as a key raw material for steel production, with the company drawing a roadmap up to 2030 to diversify mining operations under the Ministry of Steel. NMDC will start commercial production of thermal coal by October-December period and looks to sell around 1 MT of the dry fuel within FY27, as confirmed by Chairman Amitava Mukherjee. Steel Authority of India Ltd (SAIL) reported that its crude steel output rose by 8% year-on-year to 1.68 million tonnes in August 2026. BEML has entered into a strategic MoU with Universal MEP Projects and Engineering Services Limited to jointly pursue productivity-driven Fleet Management Contracts across India's coalfields.
