Stock market benchmark indices Sensex and Nifty drifted lower in early trade on Monday (September 7, 2026) as elevated crude oil prices, escalation in U.S.-Iran hostilities and concerns over a possible U.S. interest rate hike weighed on investors' sentiment.
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Among the 30 Sensex firms, Infosys, Tech Mahindra, HCL Tech, Tata Steel, Tata Consultancy Services, and UltraTech Cement were among the major laggards.
Eternal, Bharti Airtel, Bharat Electronics, and Larsen & Toubro were among the winners.
Brent crude, the global oil benchmark, traded 0.78% higher at $97 per barrel.
"Friday's U.S. jobs report came in far stronger than expected, reviving concerns over a possible interest-rate hike, while fresh attacks in the U.S.-Iran conflict are keeping oil prices at elevated levels, posing a key overhang for domestic investor sentiment," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.
The next major catalyst comes on Friday (September 4) with the release of U.S. inflation data, which is expected to influence Federal Reserve rate expectations and, consequently, global risk sentiment, he added.
In Asian markets, South Korea's Kospi jumped 3.36%, Japan's Nikkei 225 index climbed 1.83%. Shanghai's SSE Composite index and Hong Kong's Hang Seng index was trading lower.
U.S. markets ended in negative territory on Friday (September 4).
"Crude oil remains the dominant macro driver. WTI continues to trade at elevated levels around $91–92 per barrel as the latest escalation in U.S.-Iran hostilities around the Strait of Hormuz keeps concerns over potential supply disruptions firmly in focus," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,111.94 crore on Friday (September 4), according to exchange data.
On Friday (September 4), the Sensex climbed 362.57 points, or 0.48%, to settle at 76,515.43. The Nifty, however, saw a modest rise of 24.25 points, or 0.10%, to end at 23,897.70.
