The Nifty 50 closed at 24,055.80, down 24.60 points (0.10%) while the Sensex ended at 76,944.28, down 12.99 points (0.02%) on September 1, 2026. According to latest market data, the Nifty Bank settled at 57,409.60, down 615.35 points (1.06%) - the worst performing sector. The mixed closing came after ITC rallied 4.34% to ₹266.60 on cigarette price-hike expectations, while Bharti Airtel gained 3.60% to ₹1,877.20 and HCL Technologies rose 2.99% to ₹1,351.40. However, Shriram Finance declined 4.58% to ₹1,059.10 and Maruti Suzuki fell 4.41% to ₹12,950 amid weak sales data and export concerns.
ITC emerged as the top performer with a 4.34% surge driven by media reports suggesting cigarette manufacturers may raise prices by up to 17% next month, reversing pressure from February's GST and excise duty overhaul on tobacco products. IT (+0.98%) and FMCG (+0.94%) emerged as key outperformers, with the Nifty FMCG index closing 0.94% higher as ITC led gains across the sector. However, Pharma (-1.45%) was the worst-performing sector, followed by Realty (-1.42%), Auto (-1.22%), PSU Banks (-1.21%), Financial Services Ex-Bank (-1.10%), and Private Banks (-0.87%) as investors booked profits amid elevated crude oil prices. Bank, auto, realty, and healthcare stocks bore the brunt of selling, with the Nifty Bank index slipping over 1% and Nifty Realty and Nifty Pharma declining more than 1% each.
ITC led the gainers with a 4.34% surge to ₹266.60, providing strong support from the FMCG sector amid cigarette price-hike expectations. Bharti Airtel gained 3.60% to ₹1,877.20 and HCL Technologies rose 2.99% to ₹1,351.40, with the IT sector's strong performance helping limit overall market losses. Adani Ports and Special Economic Zone advanced 3.41% to ₹1,647.50, while Reliance Industries closed at ₹1,309.00, up 2.51%. On the downside, Shriram Finance declined 4.58% to ₹1,059.10, Maruti Suzuki fell 4.41% to ₹12,950 due to weak August sales data showing a 10% sequential decline, and Nestle India dropped 3.90% to ₹1,438.20.
The market's mixed performance was driven by renewed US-Iran tensions and Brent crude rising above $91 a barrel, which dented investor risk appetite and weighed on sentiment. Fresh military exchanges between the US and Iran, including strikes reported near the Strait of Hormuz, revived fears of supply disruption and geopolitical instability. Elevated crude oil prices stoked concerns over India's import bill, inflation, and corporate input costs, adding to broader market caution. However, gains in ITC, IT, and telecom stocks helped cushion the downside, with the Nifty IT and Nifty FMCG indices supporting the market. Bargain buying in select heavyweights helped the market trim its intraday losses, though investor sentiment remained cautious amid geopolitical uncertainty.
Sebi's closing auction session (CAS) has significantly impacted derivatives trading volumes since its August 3 debut, with Bank Nifty futures volumes falling 41% to 14,484 contracts and traded value dropping 41% to ₹2,512.95 crore as of August 31. Nifty futures volumes declined 8% to 51,118 contracts while traded value dropped 9% to ₹8,056.79 crore. According to Mint analysis, brokerages may see their revenue decline by 15-20% due to lower F&O volumes, with brokerages having larger derivatives mix facing a 10% revenue hit. The concern extends beyond futures, as Nifty 50 weekly index options also saw lower participation with call-option purchases falling 16% following the CAS introduction. Market participants report uncertainty during the auction period, with sharp price movements causing volatility - on August 26, the Nifty slumped 271.4 points within 30 seconds after the auction opened, though it later recovered.
