India’s economy grew 7.8 per cent in the first quarter of FY27, beating expectations of 7.1 per cent, but the strong GDP print failed to lift equities, as rising crude prices and global risk-off sentiment weighed on the market.
The BSE Sensex closed at 76,944.28, down 12.99 points or 0.02 per cent, while the Nifty 50 slipped 24 points or 0.10 per cent to 24,055.80, extending losses for a second session. The Nifty swung between 24,143 and 23,952 during the day amid weekly options expiry before recovering in the closing auction session.
“September opened with India’s economy delivering exactly the kind of number the market needed to hear. And then refusing to rally on it,” said Sarvam Goel, Founder of Pocketful, pointing to crude at $91 and the US 10-year yield near 4.79 per cent. “The global backdrop is simply too heavy right now.”
The immediate pressure came from crude oil, with Brent rising about 1.7 per cent to around $92 a barrel and WTI gaining more than 2 per cent to near $88 on renewed US-Iran tensions. MCX crude futures settled above ₹8,300 a barrel. European equities also fell around 1 per cent as concerns over higher energy prices and inflation weighed on risk appetite.
Sectoral show
Sectoral performance was mixed. IT and FMCG gained around 1 per cent and 0.9 per cent, respectively, while Auto, Pharma, Realty, PSU Banks and Consumer Durables fell more than 1 per cent each. ITC rose 4.3 per cent following ITC Infotech’s acquisition of a 22.1 per cent stake in Happiest Minds, while Bharti Airtel and Adani Ports were among the other top gainers. Shriram Finance, Maruti and Nestle were the key laggards.
Despite foreign institutional investors pouring over $3.2 billion into Indian markets in August, large-caps remained range-bound. “Headline FII flows can be misleading,” said N. ArunaGiri, Founder and CEO of TrustLine Holdings, noting that a significant portion of recent inflows came through QIPs, IPOs and preferential allotments rather than secondary-market purchases.
Broader markets underperformed, with the Nifty Midcap 100 falling 1.39 per cent and the Nifty Smallcap 100 declining 0.23 per cent. Market breadth was weak, with the advance-decline ratio at 0.69.
Among stock-specific moves, TBZ surged 20 per cent to a record high after GRT Jewellers agreed to acquire a 74.12 per cent stake for up to ₹1,034 crore. UltraTech Cement’s commencement of commercial wire and cable production at its Gujarat plant weighed on Polycab, KEI and Havells.
Shining rupee
The rupee was a relative bright spot, gaining 21 paise to close at 84.95 against the US dollar, marking its third straight session of gains and its strongest level in two months. The currency was supported by dollar supplies from the Reserve Bank of India and the strong GDP print.
Gold, meanwhile, slipped, with MCX gold declining around ₹1,900 to ₹1,52,500, while COMEX gold fell nearly $75 to $4,370.
“The sharp rise in crude oil prices, driven by escalating tensions in West Asia and concerns over supply disruptions, pushed prices closer to the $92-mark, adding to the negative sentiment,” said Ajit Mishra, SVP Research at Religare Broking. He recommended a “sell on rise” approach on the Nifty.
Markets will now track US non-farm payroll data due later this week for cues on the Federal Reserve’s rate trajectory. Domestically, 24,000 remains a key support for the Nifty, while 24,200-24,250 is likely to act as resistance in the near term.