India Market Recap

Indian equity markets witnessed a sharp sell-off on Monday, with the Sensex and Nifty falling to six-month lows. The BSE Sensex declined 1,124.02 points (1.52%) to close at 72,771.72, while the NSE Nifty 50 dropped 360.25 points (1.56%) to 22,780.25. The sharp correction erased approximately Rs. 7.4 lakh cr in market capitalisation in a single session. On the technical front, Nifty support is placed at 22,700–22,500, while resistance is seen at 23,000–23,100.

US Market Recap

US equities ended the previous session lower, with the Dow Jones declining 0.67%, the S&P 500 falling 0.77% and the Nasdaq Composite losing 0.92%. Meanwhile, US Treasury yields continued to rise as persistent inflation concerns increased uncertainty over the Federal Reserve’s interest-rate outlook. The 10-year Treasury yield ended above 5.2%, near levels last seen in 2007, while the 30-year yield crossed 5.56%, around levels last seen in 2004. Investors will monitor Tuesday’s September consumer confidence reading and August job openings data for further clues on the Fed’s policy path.

Asian Market Update:

Asian markets mostly traded lower on Tuesday, tracking weakness on Wall Street amid uncertainty surrounding the ongoing US-Iran conflict. Japan’s Nikkei 225 declined 0.73%, South Korea’s Kospi fell 0.35%, Australia’s ASX 200 slipped 0.1%, and New Zealand’s NZX 50 dropped 0.72%. Geopolitical developments and concerns over energy prices continued to weigh on regional sentiment.

Commodity Check

Crude oil prices extended gains for a second consecutive session, with Brent holding above $106 per barrel and WTI approaching $94. Uncertainty surrounding US-Iran negotiations outweighed the partial restoration of flows through Saudi Arabia’s East-West pipeline. Markets are balancing the possibility of additional supply returning against continued risks to shipments through the Strait of Hormuz. Reports indicate that Iranian officials remain pessimistic about reaching an agreement with Washington to end hostilities and reopen the waterway before the US midterm elections. President Donald Trump has also rejected an Iranian proposal linked to reopening the strait within seven days. However, diplomatic efforts remain ongoing, with Reuters reporting that both sides are separately engaging with mediators to explore a possible resolution.

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