Overview
- Indian benchmarks stayed under pressure on Wednesday as Sensex opened sharply lower and closed at multi‑week lows the previous session, with Nifty slipping below 23,600.
- Brent crude climbed toward $100 a barrel after a fresh round of US–Iran skirmishes, Houthi strikes and threats around the Strait of Hormuz, lifting the oil risk premium for importers.
- Information‑technology stocks and banks led selling on Dalal Street because their earnings or currency exposure make them sensitive to higher US rates and a stronger dollar.
- Foreign institutional investors were net sellers in early September while a heavy IPO calendar has been diverting local liquidity away from the secondary market, intensifying downward pressure on prices.
- A sustained run of high oil prices could raise India’s inflation and current‑account deficit, weaken the rupee, and complicate the outlook for corporate margins and the Reserve Bank’s policy choices.