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NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%

Sensex Drops 396 Points Amid Global Inflation Risks

By ThePip DeskSensex Drops 396 Points Amid Global Inflation Risks

Indian equity benchmarks trade lower as the BSE Sensex drops 0.52% amid persistent global inflation fears, crude oil prices, and monsoon concerns.

Market Performance Update

Indian equity benchmarks recovered slightly from intraday lows but remained in the red during early afternoon deals. The market sentiment remains cautious as traders react to persistent crude oil prices and rising Middle East hostilities, which continue to heighten global inflation and rate-hike concerns.

  • BSE Sensex is currently trading at 75181.30, down 396.28 points or 0.52%.
  • The index traded within a range of 74914.79 to 75220.88.
  • Market breadth on the index shows 11 stocks advancing against 19 stocks declining.

Sectoral Trends and Movers

Sectoral performance on the BSE reflects a divergence between commodities and technology. While metal and power stocks saw gains, the IT and technology sectors faced significant selling pressure.

  • Top Gaining Sectors: Metal up 1.94%, Utilities up 1.71%, Power up 1.25%, Basic Materials up 0.84%, and Energy up 0.62%.
  • Top Losing Sectors: IT down 3.05%, TECK down 2.21%, Realty down 0.84%, FMCG down 0.84%, and Auto down 0.38%.
  • Sensex Top Gainers: Adani Ports & SEZ 3.29%, Tata Steel 2.72%, Trent 1.42%, NTPC 1.09%, and Axis Bank 0.85%.
  • Sensex Top Losers: Infosys 4.36%, HCL Technologies 4.14%, Tech Mahindra 3.19%, TCS 2.32%, and Hindustan Unilever 1.65%.

Macroeconomic Pressures

External factors continue to weigh on domestic sentiment, including domestic agricultural data and global economic indicators. Crisil Ratings noted that the Rainfall Distortion Index recorded a deficiency score of 14.4 as of September 4, 2026, marking the most spatially distorted monsoon in a decade, compared to a surplus score of 18.7 during the same period last year.

Asian markets are displaying mixed signals following data from China. Consumer price inflation in China rose 0.8% in August compared to the previous year, surpassing the 0.5% increase recorded in July.

Cement Sector Outlook

Looking ahead, ICRA expects green energy transition momentum within India’s cement sector. Major producers are projected to scale up green power capacity to 5.8-6.0 GW by March 2028 from 4.0 GW as of March 2026.

  • Investment Required: Rs 12,000 crore to Rs 13,000 crore over the next two years.
  • Projected Savings: Rs 6,200 crore to Rs 6,700 crore annually.
  • Payback Period: Estimated at 1.8 to 2.2 years.
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