More Stories

Informist, Thursday, Sept. 3, 2026

 

By Adhithya Aji

 

MUMBAI – Benchmark indices are expected to extend losses in the near term as elevated crude oil prices, developments in West Asia, and higher global bond yields provide negative cues for investors. The August futures of Brent crude oil were nearly $97 per barrel as the West Asia war continued to create supply worries. 

 

Most analysts are of the view that markets are highly volatile with the trajectory of crude oil prices to determine the short term direction. The broader market indices are seeing more buying interest than benchmark peers. Foreign institutional investors are showing more buying interest in small- and mid-cap indices, and they are avoiding some large-cap constituents. "So that is why market is not moving even though FIIs are buying," Rupak De, senior technical analyst at LKP Securities said. 

 

The Reserve Bank of India's mobilisation of better-than-expected foreign funds through various facilities is expected to aid the equity markets. The RBI said the special foreign exchange swap window attracted total foreign exchange inflows of $136.38 billion as of Monday. The FCNR(B) deposits garnered $127.23 billion. Inflows into the schemes were sharply higher than expectations. The inflows support the rupee as the RBI uses it to intervene in the foreign exchange market. Foreign investors are likely to opt for Indian markets amid an appreciating rupee as they will get more returns on their investments, according to Amish Shah, an independent research analyst. He said it is a win-win for both the domestic market and foreign investors.

 

The RBI's incentivising higher overseas borrowings and FCNR(B) deposits, coupled with taxation benefits on capital gains in debt markets and opening up of more debt instruments for FII investments has led to a net inflow of $4.8 billion in the past two months, according to Motilal Oswal. Along with this rupee depreciation halted as well, the brokerage added. The brokerage said the inflow of $127.83 billion through FCNR (B) has provided a temporary relief in deposit mobilisation, improved systemic liquidity, and strong forex reserves. "These inflows shall further support credit growth for the banking sector," Motilal Oswal said. 

         

On Thursday, the Nifty 50 ended 0.2% lower at 23873.45 points. The index ended lower after opening higher. The index failed to sustain above 24000. "Nifty (50) needs to move above 24,000 to witness...a meaningful recovery," Rupak De, senior technical analyst at LKP Securities, said. De expects the index to fall to 23700 in the short term. "We are suggesting our clients to do a sell-on-rise kind of thing till the time Nifty (50) is remaining below 24000," the analyst added. Technical analysts peg the support for the 50-stock index at 23600-23700, and the resistance around 24000-24100. End

 

US$1 = INR 94.49

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.