Mumbai, September 1, 2026: Indian equity markets are likely to begin Tuesday’s session on a cautious note, with GIFT Nifty indicating a weak opening amid negative global cues. GIFT Nifty was trading around 24,200 levels in early trade, pointing towards a flat-to-negative start for the Nifty 50 and Sensex. 

The cautious mood follows a weak session on Wall Street, where major US indices ended lower amid renewed geopolitical tensions between the US and Iran. Rising crude oil prices and higher US Treasury yields have also increased concerns over inflation and the possibility of tighter monetary policy. 

Asian markets mixed

Asian equities traded with a mixed bias on Tuesday. Japan’s Nikkei, South Korea’s Kospi and Australia’s ASX 200 were under pressure in early trade, while some other regional markets showed resilience. Investors remained focused on developments in the Middle East and their potential impact on energy prices and global inflation. 

Crude oil remains a key concern

Oil prices continued to rise as renewed US-Iran tensions raised concerns about possible disruptions to energy supplies through the Strait of Hormuz. Brent crude was trading around $91–92 per barrel, while WTI remained above $86. Higher crude prices could increase inflationary pressure for oil-importing economies such as India. 

FII selling weighs on sentiment

Foreign institutional investors (FIIs) intensified selling in Indian equities on August 31, offloading nearly ₹8,000 crore, while domestic institutional investors (DIIs) provided some support with purchases of around ₹4,588 crore. The divergence between FII and DII flows is likely to remain an important factor for market direction. 

What investors should watch

Market participants will track GIFT Nifty, crude oil prices, global bond yields, FII/DII flows and developments in the US-Iran conflict. On the domestic front, the Nifty’s 24,000 level remains an important psychological support, while sustained weakness below recent lows could increase selling pressure. 

Overall, the opening session is expected to remain volatile and cautious, with global geopolitical developments and movements in crude oil likely to dictate market sentiment.