Indian equity indices ended lower for the fourth consecutive session on September 3, with the Sensex closing down 417.49 points or 0.55 percent at 76,152.86 and the Nifty declining 41 points or 0.17 percent at 23,873.45. According to CNBC TV18, the Nifty opened 83 points higher but failed to hold on to its gains, reversing sharply and falling more than 150 points from the day's high before settling in negative territory. The index slipped below 23,950 around noon and remained volatile through the afternoon, with the closing auction session adding to the drag as Nifty shed nearly 30 points in the final minutes. In four consecutive sessions, the Sensex and the Nifty declined 1.44% and 1.25% respectively. The NSE cash turnover slipped 3 percent from the previous session, while market breadth was positive with 2,545 shares rising and 1,778 shares falling on the BSE. As per Religare Broking's Ajit Mishra, markets failed to capitalize on early gains and ended lower on the weekly expiry day, with investor remaining cautious amid lingering geopolitical uncertainties and elevated crude oil prices.
Banks provided significant support to the market, with Axis Bank and HDFC Bank among the top Nifty gainers. As reported by CNBC TV18, RBL Bank and IDFC First Bank gained up to 5% after big FCNR deposits. The banking sector's strong performance helped offset some of the broader market weakness and contributed to the overall market resilience. Top gainers on Nifty included Adani Ports, Axis Bank, HDFC Bank, Bharat Electronics, and Asian Paints, while losers were Tech Mahindra, Cipla, Bajaj Auto, Cipla and M&M. On the sectoral front, PSU Bank and Private Bank rose 0.5% each, with the banking sector showing mixed performance across different segments. RBL Bank surged over 4.5%, while Bank Nifty bucked the broader weakness, ending 208 points higher.
The selloff was concentrated in IT, FMCG, and auto stocks, with Hexaware falling 2.4% after its CEO resigned, while Godrej Consumer lost around 3% following management's cautious near-term guidance for its domestic business. According to The Hindu BusinessLine, Bajaj Auto and Tech Mahindra were among the Nifty's top laggards on the day. In realty, Anant Raj, Oberoi Realty, DLF, and Lodha Developers all advanced, with analysts attributing the buying to value-seeking ahead of the festive demand season. Against this, financial stocks and realty provided pockets of strength, with RBL Bank surging over 4.5%, Adani Ports gaining 2%, and Axis Bank and HDFC Bank rising 0.9% and 0.4% respectively. Auto, FMCG, IT and Pharma sectors declined 0.5% each, with top losers including Tech Mahindra (-1%), HCL Tech (-0.90%), TCS (-0.71%), and Infosys (-0.65%). Sectoral performance was mixed, with Realty, Media and Chemicals emerging as the top gainers, while IT, FMCG and Auto stocks faced selling pressure.
The Indian rupee strengthened to its biggest single-day gain since July 27, appreciating 49 paise to close at 94.48 against the dollar, driven by massive capital inflows from the Reserve Bank of India's concessional foreign-currency swap scheme. As reported by The Hindu BusinessLine, Indian banks collectively mobilised $136.4 billion through the twin forex windows, well ahead of market expectations, pushing system liquidity surplus above ₹6 trillion. Dilip Parmar from HDFC Securities noted that the technical setup for spot USD/INR has turned weak, with the pair finding support at 84.10 and resistance at 84.95. A softer dollar and steady crude prices also provided support to the rupee's strength. The rupee posted its biggest single-day gain since July 27, appreciating 49 paise to ₹94.48, with the move supported by heavy capital inflows under the RBI's concessional swap scheme.
According to the latest technical analysis from multiple experts, Nifty 50 support levels are positioned at 23,850, 23,793, and 23,744, while resistance is expected at 24,100, 24,000, and 23,999. Nandish Shah of HDFC Securities noted that today's follow-through selling reinforces the near-term downtrend, with Nifty trading below all key moving averages, reflecting sustained selling pressure and weak sentiment. Shah said the index faces strong resistance in the 24,000-24,200 zone, which has now become a critical supply area for any recovery, with a decisive break below 23,800 potentially opening the way towards 23,600. Shrikant Chouhan of Kotak Securities said weak sentiment is likely to persist as long as the market trades below 24,000/76,700, with the index potentially slipping towards 23,800-23,750/76,000-75,700. On the upside, a sustained move above 24,000/76,700 could improve sentiment and trigger positive momentum towards 24,100-24,150/77,000-77,200. Nagaraj Shetti of HDFC Securities expects the underlying trend to remain weak amid choppy trading, with a sustained move below 23,800 potentially dragging the Nifty towards the next support at 23,600, which corresponds to the opening upside gap formed on June 15.
