Stock Market Opens Cautiously, Sensex And Nifty Slip As Crude Oil, US-Iran Tensions Weigh

Mumbai: Indian equity benchmarks opened on a cautious note on Tuesday, September 1, as strong domestic economic growth failed to fully offset concerns over rising crude oil prices and escalating US-Iran tensions.

In early trade, the BSE Sensex was down around 0.1% at 76,884.91, while the NSE Nifty 50 slipped 0.17% to 24,039.75. Both benchmarks remained close to the flat line as investors weighed domestic growth against weak global cues.

Strong GDP Data Offers Support

India's real GDP expanded 7.8% year-on-year during the April-June quarter of FY27, supported by investment, manufacturing and consumer demand. The growth figure was stronger than expectations and provided some support to equities.

However, the positive domestic data was overshadowed by renewed geopolitical concerns. Rising tensions between the US and Iran have pushed crude oil prices above $90 per barrel, raising fresh worries for oil-importing India.

Broader Market Under Pressure

Selling pressure was visible across most sectors, with 12 of the 16 major sectoral indices trading lower in early deals. Banking stocks fell around 1%, while mid-cap and small-cap indices also remained under pressure.

Gainers and Losers

Among broader-market gainers in early trade, Gabriel India, Balrampur Chini, Cyient, Indegene and Ola Electric were trading higher.

On the losing side, Adani Energy Solutions and Adani Enterprises witnessed sharp declines, while Mastek, Alok Industries and Zee Entertainment were also among the notable laggards.

Overall, trading on both the BSE and NSE began on a cautious footing, with geopolitical risks and elevated crude prices limiting the positive impact of India's stronger GDP growth.