India’s key benchmark indices are likely to remain under pressure as high crude oil prices and rising US Treasury yields continue to weigh on the overnight global economic outlook amid ongoing geopolitical tensions.

Asian markets also traded in the red, while US stock futures witnessed a sharp decline.

Indian equities remained under pressure on Wednesday, 9 September, as escalating tensions in the Middle East pushed oil prices to a six-week high and raised concerns about a fresh rise in global inflation.

Domestic Market Recap

On Wednesday, Indian indices ended red:

• Sensex slipped by 813.35 points (1.08%) to close at 75,764.23.
• Nifty 50 moved down by 0.86% to settle at 23,431.50.

Gift Nifty

Gift Nifty was trading near 23,461, around 91 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

• The Dow Jones Industrial Average slumped by 405.41 points (0.77%) to close at 52,380.66.
• S&P 500 was down by 37.16 points (0.48%), ending at 7.636.36.
• The Nasdaq Composite was lower by 168.07 points (0.64%), finishing at 26,253.34.

Crude Oil Prices

• Brent crude gained by 0.10% to $101.34/barrel
• US West Texas Intermediate (WTI) crude was trading 0.50% higher at $96.55/barrel

Overnight Major Global Events Driving Sentiment

1. Brent crude stays above $100: Brent crude is holding above $100 a barrel, after escalating US-Iran tensions and attacks on oil tankers near the Strait of Hormuz raised concerns about disruptions to global energy supplies. Brent was around $101.4 in early Asian trade.
2. US inflation data and the Fed’s September rate decision: Markets are waiting for upcoming US inflation data, particularly CPI and PPI, because it could influence the Federal Reserve’s decision at its September meeting. At the same time, the US 10-year Treasury yield is around 4.84%, close to its highest level since 2023.

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