7 September 2026 Punjab Khabarnama Bureau : Indian benchmark indices Sensex and Nifty are likely to open on a mildly weak note, with GIFT Nifty trading lower in early Monday trade. While a strong rally across Asian markets is offering some support, elevated crude oil prices and rising expectations of a US Federal Reserve rate hike are keeping investors cautious.
GIFT Nifty Points to Weak Opening
GIFT Nifty was trading at around 23,963, down 47 points, or 0.2%, around 8 am, signalling a mildly negative start for domestic equities.
The Indian market had ended higher in the previous session, with the Sensex gaining 362.57 points, or 0.48%, to 76,515.43, while the Nifty rose 24.25 points, or 0.10%, to 23,897.70.
Asian Markets Rally
Asian equities provided a positive global cue on Monday.
Japan’s Nikkei rebounded around 2%, while South Korea’s Kospi jumped about 3%. MSCI’s broadest index of Asia-Pacific shares outside Japan also gained around 0.9%.
The rally followed stronger-than-expected US employment data, which boosted expectations for global economic growth.
Oil Prices Remain a Major Concern
The gains in Asian markets are being tempered by elevated crude prices.
Brent crude was trading around $96.45 a barrel, after rising nearly 10% last week, while West Texas Intermediate was around $91.85. The rise has been linked to renewed tensions involving the US and Iran and disruptions around the Gulf region.
For India, higher crude prices are particularly important because the country remains heavily dependent on imported oil. Sustained elevated prices can increase inflationary pressure, widen the import bill and put pressure on the rupee.
Fed Rate-Hike Expectations Rise
Another factor weighing on sentiment is the US Federal Reserve outlook.
A strong US jobs report has increased expectations that the Fed could raise interest rates at its September 16 meeting. Markets were pricing in a 58% probability of a September rate hike, according to Reuters-linked data cited by Moneycontrol.
Higher US interest rates can make emerging-market assets relatively less attractive and may encourage foreign investors to remain cautious.
Domestic Institutional Buying Offers Support
Despite the mixed global backdrop, domestic institutional investors have continued to provide support to Indian equities.
Domestic institutional investors bought equities worth ₹8,930 crore on September 4, extending their buying streak to a 19th consecutive session.
Foreign institutional investors, however, remained net sellers for a second consecutive session, selling equities worth ₹3,111 crore.
Nifty Technical Levels to Watch
Market analyst Ponmudi R, CEO of Enrich Money, identified 23,800 as an important support level for the Nifty.
On the upside, 24,000–24,200 is seen as an immediate resistance zone. A sustained move above 24,200 could improve the near-term market structure, while a break below 23,800 could expose the index to further weakness toward 23,600.
Wall Street Ends Lower
US equities closed lower in the previous session after the strong jobs report pushed expectations of a Fed rate hike higher.
The Dow Jones Industrial Average fell 0.51%, the S&P 500 declined 0.38%, and the Nasdaq Composite slipped 0.29%.
The contrasting signals leave Indian markets balancing strong Asian cues against higher oil prices, Fed uncertainty and continued foreign selling.