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Below the Quote on Daily Market Commentary for September 2nd 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Markets are likely to remain under pressure as concerns over rising crude oil prices, bond yields and dollar index keep investor sentiments cautious. Brent crude surged above US$95/bbl, following the escalation in the West Asian conflict. Further, global bond yields surging to multi-year highs amid concerns over a near-term US rate hike and a firmer dollar index, inching towards the 100-mark, is adding to pressure on global equities. On Wednesday, the Nifty declined for the third consecutive session, closing 0.6% lower at 23,914. India VIX rose over 5% indicating rise in domestic volatility. Broader markets underperformed, with the Nifty Midcap 100 down 0.5% and Smallcap 100 falling 0.4%. Auto, Media and IT were among the key laggards, while Energy and PSE stocks outperformed. India and Uzbekistan elevated ties to a Comprehensive Strategic Partnership and agreed on a long-term uranium supply arrangement to support India’s nuclear energy programme. The countries also targeted US$5bn in annual bilateral trade by 2030 and signed agreements across trade, investment, infrastructure, critical minerals, defence and technology. The development is positive for India’s long-term energy security and the nuclear power and allied capital goods ecosystem. Japan Credit Rating Agency upgraded India’s sovereign rating to A- from BBB+ with a stable outlook, citing strong growth and improving fiscal metrics. The upgrade is positive for India’s standing among global investors. Investors will track India Services PMI, US ISM Services PMI and US Initial Jobless Claims for further cues on domestic and global economic activity.

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