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Middle East tensions, crude oil surge weigh markets lower for fifth straight week
Sep-11-2026

Indian markets ended over 2% lower, extending losses for fifth straight week as traders avoided risky bets amid escalating Middle East tensions, raising concerns over disruptions to oil supplies and shipping routes. Brent crude crossed $100/bbl, stoking fears of spiraling inflation hurting corporate earnings. Higher US bond yields and IPO-bound liquidity also weighed on sentiment.

Some of the major developments during the week are:

India-US trade deal nears finalization: India-US trade deal is nearing completion, with Commerce Secretary Rajesh Agrawal describing it as ‘more or less’ finalised. Both countries are now focusing on developing a framework for preferential market access before the agreement is signed at an appropriate time.

India’s merchandise exports surge 15% in April-August this fiscal: Commerce and Industry Minister Piyush Goyal said India’s merchandise exports grew by around 15 per cent during April-August this fiscal despite global uncertainties. 

CII Business Confidence Index strengthens to 66.0 in Q2FY27: Reflecting India’s strong economic growth and rising optimism across industries, the CII’s Business Confidence Index rose to 66.0 in Q2 of fiscal year 2026-27 (Q2FY27), its highest level in recent quarters, from 60.8 in the preceding quarter.

RBI mops up Rs 6.02 lakh crore thorough two VRRR auctions amid record banking system surplus: The Reserve Bank of India (RBI) has absorbed over Rs 6.02 lakh crore from the banking system through two variable rate reverse repo (VRRR) auctions as surplus liquidity remained at a record high.

Automobile retail sales grow 17.51% to record 24,23,201 units in August 2026: Federation of Automobile Dealers Associations (FADA) has said that the Automobile retail sales in India increased by 17.51% to a record 24,23,201 units in August 2026 from 20,62,038 units in the same period last year.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 1733.67 points or 2.27% to 74,781.76 during the week ended September 11, 2026. On the sectoral front, S&P BSE Realty was down by 463.61 points or 6.54% to 6,629.37, S&P BSE Information Technology was down by 1,577.62 points or 5.37% to 27,823.48 and S&P BSE TECK was down by 567.87 points or 3.71% to 14,750.96 were the top gainers, while S&P BSE Healthcare was up by 324.93 points or 0.64% to 51,238.13 and S&P BSE Power was up by 20.77 points or 0.28% to 7,496.57 only gainers on the BSE.

NSE movement for the week

The Nifty slipped 499.60 points or 2.09% to 23,398.10. On the National Stock Exchange (NSE), Nifty IT was down by 1773.60 points or 5.78% to 28,921.50, Nifty Mid Cap 100 decreased 881.85 points or 1.40% to 62,197.20, Bank Nifty was down by 763.10 points or 1.33% to 56,606.55 and Nifty Next 50 lost 797.20 points or 1.09% to 72,083.70.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 54,083.48 crore and gross sales of Rs 59,552.67 crore, leading to a net outflow of Rs 5,469.19 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 5,549.96 crore against gross sales of Rs 7,165.78 crore, resulting in a net outflow of Rs 1,615.82 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 226.72 crore and gross sales of Rs 140.64 crore, leading to a net inflow of Rs 86.08 crore. (Provisional)

Industry and Economy

Expressing optimism about India’s growth prospects, NITI Aayog Vice Chairman Ashok Kumar Lahiri said the Indian economy has been doing reasonably well and that Asia’s third-largest economy will regain its mojo and return to a current account surplus soon. He said the major challenge the Indian economy faces is the low share of manufacturing in India's overall Gross Domestic Product (GDP). India’s economy grew at a faster-than-expected 7.8 per cent in the April-June quarter, showing resilience despite concerns that the war in Iran and resulting global uncertainty could weigh on domestic economic momentum. On foreign investment in India, Lahiri said domestic savings, rather than foreign savings, must do most of the heavy lifting.

Outlook for the coming week

Benchmark indices ended lower in the passing week on soaring crude oil prices amid escalating tensions in West Asia. Foreign fund outflows also dented domestic sentiments. 

In the coming week, on the economic front, investors will be eyeing Retail inflation and WPI inflation data. Also, traders will be waiting for unemployment rate, passenger vehicles sales and balance of trade data to be out on September 15. Moreover, market participants will be eyeing Bank Loan and Deposit Growth and Foreign Exchange Reserves data on September 18.

Meanwhile, ICC Global Business Summit 2026 will be held between September 18-19, 2026. Moreover, Transform Tomorrow at SEMICON India 2026 will be held between September 17-19, 2026.

On the global front, investors would be eyeing economic data from United States (US) starting with Redbook on September 15, followed by API Crude Oil Stock, Retail Sales, Business Inventories, EIA Crude Oil Stocks, Fed Interest Rate Decision on September 16, Fed Press Conference, Housing Starts, Initial Jobless Claims on September 17, and Industrial Production, Baker Hughes Oil Rig Count on September 18.

Top Gainers 

  • Adani Enterprises up by 5.48% was the top gainer on Nifty for the week - Adani Enterprises traded with traction after its arm Adani Airport Holdings (AAHL) entered into binding agreements to raise Rs 9,825 crore (around $1 billion) of primary equity capital from a consortium of leading domestic and global investors. The transaction values AAHL at a pre-money equity valuation of around $18 billion. 
  • Max Healthcare Institute up by 4.30% was another top gainer on Nifty for the week - Max Healthcare Institute traded higher after the company hiked its shareholding in its subsidiary -- Kalinga Hospital to around 66.15% from around 58.28%. The company has acquired the stake for a consideration of around Rs 87.87 crore.

Top Losers 

  • HCL Technologies down by 8.56% was the top loser of the week on Nifty - HCL Technologies came under pressure along with other IT sector stocks as rising expectations of interest rate hike in US and concern around newly proposed H-1B fee hikes, sparked caution among investors. Meanwhile, the company has launched its Advanced Semiconductor Lab in Bengaluru. This facility plays a key role in the company’s commitment to advancing semiconductor innovation.
  • Infosys down by 8.19% was another top loser of the week on Nifty - Infosys traded lower amid rising fears of interest rate hike by the US Fed. The majority of clients of Indian IT companies are based in US, and a higher interest rate environment may lead to decline in discretionary IT spending. Investors worry that this may weigh on earnings of IT companies in coming quarters. Besides, fears around the newly proposed H-1B fee hikes weighed on sentiment.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 24,005.75 on September 7 and lowest level of 23,231.40 on September 11. On the last trading day, the Nifty closed at 23,398.10 with weekly loss of 499.60 points or 2.09 percent. For the coming week, 23,084.42 followed by 22,770.73 are likely to be good support levels for the Nifty, while the index may face resistance at 23,858.77 and further at 24,319.43 levels.

US Market

The U.S. markets traded lower during the week after producer price data for August and surging oil prices stoked concerns that the Federal Reserve could raise interest rates at its meeting next week.

Some of the major developments during the week are:  

U.S. wholesale inventories jump 1.3% in July: Wholesale inventories shot up by 1.3 percent in July after climbing by 0.4 percent in June. 

Producer prices in U.S. increase in August: The Labor Department said its producer price index for final demand rose by 0.4 percent in August following a revised 0.1 percent uptick in July.

U.S. weekly jobless claims edge down in week ended September 5: Initial jobless claims edged down to 206,000, a decrease of 1,000 from the previous week's revised level of 207,000.

Existing home sales in U.S. drop in August: Existing home sales dove by 2.0 percent to an annual rate of 3.98 million in August after tumbling by 1.7 percent to an annual rate of 4.06 million in July. 

Crude oil inventories in U.S. edge down less than expected: Crude oil inventories edged down by 0.4 million barrels in the week ended September 4. Street had expected crude oil inventories to shrink by 1.6 million barrels.

European Market

European stocks markets remained subdued during the passing week, after the European Central Bank raised interest rates by 25 basis points to 2.5% and increased inflation forecasts.

Some of the major developments during the week are:

German inflation confirmed at 4-month high: Consumer prices rose 2.9 percent year-on-year in August after a 2.8 percent gain in July. A similar higher rate was last seen in April.

French industrial production falls unexpectedly: Industrial output dropped 0.4 percent in July, confounding expectations for an increase of 0.2 percent. July's drop followed a 0.1 percent decrease in June.

Eurozone economic growth revised up to 0.6% in the second quarter: Gross domestic product grew 0.6 percent sequentially after remaining flat in the first quarter. The second quarter growth was revised up from 0.4 percent estimated previously.

German exports fall for first time in 6 months: Exports decreased 0.8 percent on a monthly basis in July, in contrast to the 0.9 percent increase in June. This was the first decrease since January. 

French trade gap widens in July: The trade deficit rose to EUR 6.67 billion in July from EUR 5.75 billion in June. In the same period last year, the shortfall was EUR 4.99 billion.

Asian Market

Asian markets traded mixed during week as inflation and interest rate worries weighed on markets after Brent crude prices jumped to their highest level since May on escalating Middle East tensions.

Some of the major developments during the week are:

Japan GDP grows at annualized 1.4% in Q2: Japan’s economy expanded at an annualized rate of 1.4% in Q2 2026, revised up from the preliminary reading and market estimates of 1.1%. It marked the third consecutive quarter of growth.

Japan producer prices rise more than estimated: Japan’s producer prices rose 7.6% year-on-year in August 2026, following an upwardly revised 7.7% increase in the prior month, which had been the fastest pace since February 2023.

Japan machine tool orders surge in August: Japan’s machine tool orders surged by 65.4% year-on-year to JPY 197,880 million in August 2026, marking the strongest growth since October 2021 and following a 50.4% rise in the previous month.

China inflation rises to 0.8% in August: China’s annual inflation climbed to 0.8% in August 2026 from July’s six-month low of 0.5%, in line with market estimates.   

China's exports jump 25% in August: China’s exports jumped 25% Y-o-Y to $401.44 billion in August 2026, remaining close to June’s record high as global AI infrastructure buildout continued to fuel trade across Asia.
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