The Indian stock market is expected to start on a slightly weaker note on Wednesday (September 2) and extend its decline, as indicated by GIFT Nifty and negative sentiment across Asian markets. According to Reuters, GIFT Nifty futures were at 24,033.5 points as of 7:38 a.m. IST, indicating a negative start for the Nifty 50 index, which closed at 24,055.80 on Tuesday. The Nifty Oil and Gas sector is showing positive momentum with the index closing at 12,960.00 (+0.86%) on Tuesday, as reported by Univest. The latest Gulf flare-up has pushed oil prices up around 2.5-2.7% and reminded markets how quickly supply routes can be disrupted, putting energy giants like Reliance Industries and Saudi Arabian Oil in focus. However, Brent crude jumped 2% to $96.6 a barrel, triggering a drop in Asian markets and lifting global bond yields on worries of a near-term U.S. rate hike.
The escalation of tensions in the Middle East has intensified significantly as the U.S. launched a series of airstrikes against targets in Iran overnight, prompting an Iranian response in a renewed escalation of tensions. According to Reuters, 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. Two analysts noted that this could make emerging markets less attractive for global investors. The latest Gulf flare-up has pushed oil prices up around 2.5-2.7% and reminded markets how quickly supply routes can be disrupted, putting energy giants like Reliance Industries and Saudi Arabian Oil in focus. November Brent crude futures contract rose nearly 3% from Monday's lows to more than $91 per barrel, as reported by Informist Media, adding to the upward pressure on energy prices.
The Indian equity markets showed mixed performance on Tuesday with Nifty 50 closing at 24,128.75 (+0.2%) and BSE Sensex rising 0.3% to 77,217.05. According to Informist Media, IT majors HCL Technologies and Infosys rose nearly 4% and over 1% respectively, while Reliance Industries gained further and lent support to the 50-stock index. FMCG major ITC was the top gainer, up nearly 4%, carrying positive sentiment after the announcement of the merger of Happiest Minds Technologies with its arm. However, financial services companies put downward pressure on the Nifty 50, with Shriram Finance falling nearly 4% and other major financial service companies like Axis Bank, Bajaj Finserv, and State Bank of India down 1-3%. Automobile companies performed well with Bajaj Auto and Tata Motors Passenger Vehicles up around 2%, while Mahindra & Mahindra posted a 42% on-year growth in August vehicle sales. Broader market indices were mixed as mid-cap indices fell nearly 1% and small-cap indices were down 0.3-0.5%.
Ahead of the trading session, SEBI-registered research analyst Deepak Pal and an analyst at Anand Rathi have recommended several stocks that could potentially be bought during Wednesday's trading session. As reported by ET Now, the analysts have provided specific target prices and stop-loss levels for these recommendations. According to Univest, Ankit Jaiswal recommends tracking the first 15-minute candle of Wednesday's session before committing to directional trades based on the Nifty Oil and Gas prediction for tomorrow. The analyst recommendations come amid heightened volatility in oil markets due to Gulf supply disruption concerns and the latest Iran-US conflict escalation. The oil and gas Wednesday forecast becomes bullish above 13,010.00 and bearish below 12,820.00 on a 15-minute NSE chart close for Wednesday.
According to the analyst recommendations, the top picks for September 2 include PG Electroplast with a target price of ₹580 and stop loss at ₹555, Oil India with a target of ₹505 and stop loss at ₹480, Reliance Industries with a target of ₹1,365 and stop loss at ₹1,280, and ONGC with a target of ₹250 and stop loss at ₹228. As reported by ET Now, these recommendations come amid weak Asian market sentiment and current Gulf supply disruption fears. According to Univest, key stocks to watch for tomorrow driving the oil and gas outlook include Reliance Industries, ONGC, GAIL India, Bharat Petroleum, and HDFC Bank, whose individual performance will determine whether the oil and gas sector outperforms the broader market. The Nifty Oil and Gas outlook for September 2, 2026 is positive with immediate support at 12,820.00 and resistance at 13,010.00, as reported by Univest, with the VIX standing at 11.32 indicating moderate volatility levels.
The GDP growth for the June quarter stood at 7.8%, according to government data, which was higher than expectations of 7.2%, according to an Informist Poll. As reported by Informist Media, "GDP growth has remained resilient despite geopolitical tensions, while high-frequency indicators suggest that domestic growth momentum continues to hold up." This evidence of broad-based inflation should allow the Reserve Bank of India to keep interest rates unchanged in the near term. However, with emerging signs of inflation broadening, February 2027 could emerge as the key risk window for a potential rate hike, according to Nirmal Bang Institutional Equities. The Nifty 50 remained rangebound for 11 consecutive sessions with technical analysts noting that sustained trading below 23,980 could drag it toward 23,900 levels, followed by 23,750, while a sustained rise above 24,200 could take the Nifty 50 to 24,380. The Nifty Oil and Gas sector continues to show positive momentum despite global market volatility, supported by ongoing supply disruption concerns and geopolitical tensions in the Middle East.
