India Stocks Outlook
Seen down; oil jumps as US, Iran retaliate fresh fires
This story was originally published at 08:32 IST on 2 September 2026
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By Adhithya Aji
MUMBAI – Benchmark indices are expected to kick off the day with losses as crude oil prices jumped sharply after the US carried out the latest round of attacks in Iran and reports said Tehran struck back as well. The November futures of Brent crude gained 2% to nearly $97 per barrel. The US treasury yields touched new highs Tuesday due to renewed tensions in the West Asia. Asian markets opened lower Wednesday and the US indices ended lower Tuesday.
US Central Command said its military forces began striking Islamic Revolutionary Guard Corps targets in Iran. "The strikes follow recent attempted attacks by the IRGC (Islamic Revolutionary Guard Corps) against commercial shipping in the Strait of Hormuz and against American service members deployed to the region," the US Central Command said in an X post. Following this, Iran reportedly attacked Kuwait, Jordan, and Bahrain with drones and missiles, Al-Jazeera reported. This added fuel to the tensions in the region, which pushed the crude oil prices higher.
Moreover, government bond yields jumped across major markets Tuesday following a surge in the 10-year US treasury notes. The 10-year US treasury yield rose to a 20-month high of 4.7880%, up 3 basis points. The higher US bond will have an impact on Indian equity because when the interest rate goes up, the debt money will not come, which will weaken the rupee and impact overseas inflows, a head of research at a domestic broking firm said. The higher bond yields across the global market have sparked negative sentiment globally.
On Tuesday, Federal Reserve Governor Michael Barr said he would support an interest rate hike if inflation shows no signs of easing. Barr said he was concerned about "broader price pressures taking hold", CNBC reported. There is around 68% possibility that the US Federal Reserve will hike the interest rates to around 3.75% to 4.00%, according to CME FedWatch tool.
At 0759 IST, the October futures of GIFT Nifty were 0.4% lower at 24081.50, indicating a gap-down opening for the Nifty 50 Wednesday. The support for the 50-stock-index is seen around 23950-23800 points, while a breach above 24200 could take the index towards 24380-24400 levels, according to Vipin Kumar, senior technical and derivatives analyst at Globe Capital Market. "Lack of fresh triggers are causing lackluster trading sessions in domestic markets; hence, we suggest traders to maintain stocks- and sector-specific trading approach for the time being," Kumar said.
Asian indices opened lower, with South Korea's Kospi falling around 3% to be worst hit market in the region. The sharp gain in crude oil prices weighed down on the markets of major oil importers. Wall Street indices ended lower. End
US$1 = INR 94.95
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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