Sensex, Nifty End Lower for Second Day as Geopolitical Risks Weigh on Sentiment; Nifty Closes at 24,056

TEN NEWS NETWORK

National News (01/09/2026): Indian equity benchmarks extended their decline for a second consecutive session on Tuesday, as renewed geopolitical tensions between the US and Iran, elevated US bond yields and concerns over foreign fund outflows kept investors cautious.

The BSE Sensex ended marginally lower at 76,944.28, falling 12.99 points, or 0.02 per cent. The NSE Nifty50 settled at 24,055.80, down 24.60 points, or 0.10 per cent. The market remained volatile through the session, with investors weighing strong domestic economic indicators against increasing global uncertainties.

Broader market indices under pressure

The broader market also witnessed selling pressure. The Nifty Midcap 100 index declined 1.39 per cent, while the Nifty Smallcap 100 index slipped 0.23 per cent by the close. Sector-wise, most NSE sectoral indices finished in the red. Nifty Pharma and Nifty Realty emerged among the biggest laggards, reflecting continued risk aversion across several pockets of the market.

Global tensions keep investors cautious

Market sentiment remained fragile as renewed tensions between the US and Iran added to concerns over global economic stability. Investors are also monitoring the direction of crude oil prices, US monetary policy and international capital flows.

According to Vinod Nair, Head of Research at Geojit Investments, domestic growth remains a key positive factor, with India’s stronger-than-expected GDP performance highlighting resilient demand. However, geopolitical uncertainty, expectations of a more hawkish US Federal Reserve, higher US bond yields and continued foreign capital outflows are creating pressure on equities.

Financial stocks remained particularly vulnerable, while FMCG and IT stocks witnessed comparatively stronger defensive buying.

Nifty support seen around 23,950

Technical analysts believe the 24,000-23,950 zone will remain important for the Nifty in the near term.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said a sustained break below 23,950 could weaken the index’s near-term structure and potentially push the Nifty towards 23,800.

On the upside, the 24,170-24,200 zone, corresponding to the 50-day EMA band, is expected to act as a major resistance area. A decisive move above this range could improve market sentiment and support a stronger recovery.

Sensex and Nifty see sharper losses during the session

The benchmarks came under greater pressure during the final stages of regular trading. Around 3 PM, the Sensex was down 210.70 points, or 0.27 per cent, at 76,746.57, while the Nifty was lower by 93.50 points, or 0.39 per cent, at 23,986.90. During the closing auction session, the Sensex had slipped as much as 231 points, while the Nifty briefly moved below the 24,000 mark. However, both indices recovered substantially before the final settlement.

Banking stocks among major drags

Within the banking space, Yes Bank, IndusInd Bank and Axis Bank were among the notable laggards in the Nifty Bank index. The weakness in financial stocks added to the pressure on the benchmark indices, although selective buying in defensive sectors helped limit the overall decline.

Reliance Industries gains brokerage attention

Reliance Industries remained in focus after global brokerage Jefferies retained its ‘Buy’ recommendation on the stock and raised its target price to ₹1,710.
The revised target represents an estimated 33 per cent upside from the stock’s previous closing level. Jefferies expects growth in Reliance’s retail business to provide a potential catalyst for a future re-rating.

HEG touches 52-week high

In individual stocks, HEG attracted investor attention after its shares touched a fresh 52-week high during Tuesday’s trading session.

The stock opened at ₹728.80 and climbed to an intraday high of ₹753.90 on the NSE.

Hyundai Motor India shares decline despite sales growth

Hyundai Motor India reported an 8.8 per cent year-on-year increase in total sales for August, reaching 65,796 units.

Despite the reported sales growth, the company’s shares remained under pressure. The stock declined around 2.04 per cent to ₹2,160 during Tuesday’s session.

What investors will watch next

Going forward, market participants are likely to closely track global geopolitical developments, crude oil prices, US Federal Reserve policy expectations, bond yields and foreign institutional flows.
Domestically, India’s economic growth remains a supportive factor, but analysts believe the market needs a sustained move above key technical resistance levels before a broader recovery can gain momentum. Conversely, a decisive breach of the 23,950 Nifty support level could increase selling pressure in the near term.