The New Indian Express ·
Weekly Review| Indian equities under pressure; global headwinds overshadow resilient domestic fundamentals
The Indian equity market remained volatile and under pressure during the week from 31 August to 4 September 2026. The Nifty 50 and Sensex extended their recent weakness, with both benchmarks ending the week lower as global concerns continued to influence investor sentiment.
The main source of pressure was the sharp rise in crude oil prices amid heightened geopolitical tensions. Higher oil prices raised concerns over inflation, corporate costs and the potential impact on India's external balances. Rising global bond yields and uncertainty over the direction of international interest rates also encouraged a cautious approach among foreign investors.
Domestic economic indicators remained relatively supportive, with healthy growth and tax-collection trends providing some stability. However, these positive factors were not strong enough to fully offset the impact of global uncertainties. Foreign institutional selling remained a significant headwind, although strong buying by domestic institutional investors helped limit the downside.
