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Sensex and Nifty fall as oil prices rise and U.S.-Iran tensions grow

Indian stock markets dropped on September 1, 2026, with the Sensex down 121.48 points to 76,835.79. Rising oil prices and U.S.-Iran tensions weigh on investors, but India's Q1 FY27 GDP growth of 7.8% shows economic resilience.

BRIC Team
By BRIC Team · BRIC.TV
Published Sep 1, 2026 · 2 min read · 14 views
Sensex and Nifty fall as oil prices rise and U.S.-Iran tensions grow

Key Takeaways

  • Indian stock markets opened lower due to rising oil prices and US-Iran tensions
  • Investor sentiment is unsettled, impacting emerging markets and risk appetite
  • India's economy shows resilience with 7.8% GDP growth in Q1 FY27
  • Geopolitical tensions and tight US monetary policy remain concerns

On Tuesday, September 1, 2026, Indian stock markets began the day on a downbeat note. The BSE Sensex dipped 121.48 points, landing at 76,835.79, while the NSE Nifty dropped 52.6 points to settle at 24,027.80. The drop was largely due to climbing crude oil prices and increasing tensions between the United States and Iran, which have rattled investor nerves.

Among the 30 stocks in the Sensex, the big losers were Bajaj Finserv, InterGlobe Aviation, Titan, State Bank of India, Bajaj Finance, and Axis Bank. On the flip side, ITC, HCL Tech, Bharti Airtel, and Infosys managed to gain ground.

The global oil benchmark, Brent crude, climbed 0.76%, reaching $91.22 per barrel. This uptick in oil prices is partly blamed on renewed geopolitical tensions involving the U. S. and Iran. Market analysts point out that these issues, coupled with the anticipation of a prolonged tight monetary policy by the U. S. Federal Reserve, are making investors wary in emerging markets.

Ponmudi R, CEO of Enrich Money, weighed in on the situation, saying that Indian equity markets are likely to continue exercising caution due to these external pressures. However, he noted the resilience of the domestic economy, which could offer some relief. India's real GDP grew by 7.8% in the first quarter of FY27, beating both the Reserve Bank of India's 7% projection and market expectations.

Despite worries about the impact of global uncertainties, India's economic performance in the April-June quarter has shown strength. This growth rate highlights the country's capacity to withstand external shocks, though ongoing geopolitical tensions are still a concern.

Elsewhere in Asia, stock markets had mixed outcomes. South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng indices traded lower, while Shanghai's SSE Composite index saw gains. Meanwhile, U. S. markets closed lower on Monday, August 31, 2026, with Foreign Institutional Investors (FIIs) offloading equities worth ₹7,985.88 crore.

The previous trading day saw the Sensex fall by 307.24 points, or 0.40%, closing at 76,957.27, and the Nifty drop by 95.25 points, or 0.39%, ending at 24,080.40. These figures highlight the cautious mood in the markets amid the current global economic challenges.

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