Nifty falls 1.2% as oil and yields overwhelm IT rally

Indian equities ended lower after an early IT-led rise failed to offset pressure from energy-sensitive and economically cyclical shares. Traders attributed the reversal to Brent crude remaining above $100 a barrel, the US 10-year yield briefly moving above 5%, and caution ahead of the Federal Reserve’s policy decision.

HCL Technologies, Infosys, TCS and Tech Mahindra led the technology rebound. Market reports linked the move to comments from prominent artificial-intelligence executives calling for a slower pace of AI development, which eased some concerns about the technology cycle and supported Indian IT names.

Bharat Electronics, Shriram Finance, Adani Enterprises, InterGlobe Aviation and Grasim Industries were among the reported laggards. The weakness in defence shares was sharpened by Solar Industries’ proposed Omnia acquisition; market participants focused on the size and financing of the all-cash transaction. The broader inference was that high oil, higher yields and company-specific funding concerns were outweighing selective buying in IT.

The session’s main macro transmission channel was imported inflation. Higher crude raises India’s import bill and can pressure the rupee, while also creating margin concerns for transport, aviation, chemicals and other energy-dependent businesses. Reports attributed the selling in infrastructure, industrial and materials names to this combination of cost pressure and higher discount rates.

The bond market added to the equity strain. India’s 10-year government bond yield rose to 7.09% after the RBI announced plans to sell government securities to absorb surplus liquidity. The RBI also absorbed Rs 3,93,352 crore through a variable-rate reverse repo auction at a 5.24% cut-off and weighted-average rate. The reported policy action matters because tighter liquidity and higher domestic yields can raise the financing hurdle for rate-sensitive sectors.

The RBI’s liquidity operation was the clearest domestic market action. The central bank accepted Rs 3,93,352 crore in its variable-rate reverse repo auction against a notified amount of Rs 5 lakh crore, with the first tranche to be held on September 17 and later tranches on September 21 and September 28. The RBI also said it planned open-market sales of government securities.

The Finance Ministry notified that banks and system providers cannot impose direct or indirect charges on UPI transactions up to Rs 2,000 or on RuPay-powered debit-card payments. The measure protects small-value digital payments; the treatment of charges on larger UPI transactions remains undecided.

August CPI inflation rose to 4.82% from 4.45% in July, according to government data cited in market reports. WPI inflation was reported at 9.92% for August, up from 9.78% in July. The figures sharpened attention on the October 5 to 7 MPC meeting, although no RBI rate decision was announced on Tuesday.

US equities ended lower overnight as investors weighed concerns about the pace of artificial-intelligence development, higher oil prices and rising Treasury yields. Asian markets were mixed, with Japan higher while Hong Kong and Shanghai were lower in morning trading. Participants were also cautious ahead of the Federal Reserve meeting.

Brent crude settled at $105.68 a barrel after supply concerns linked to attacks on Saudi energy infrastructure kept the market elevated. The rupee ended at Rs 95.96 per US dollar, according to market reports, while the Indian 10-year yield rose to 7.09%. These moves point to the same pressure mix for Indian assets: a cost shock from oil, a weaker currency channel and a narrower relative valuation cushion as global yields rise.

The latest reported institutional-flow data was for September 11 because Indian markets were closed on September 14. Foreign portfolio investors sold Rs 930.90 crore of Indian equities while domestic institutional investors bought Rs 1,968.17 crore. FPIs had sold Rs 14,474.82 crore in September through September 11. The data suggests domestic buying was providing some support, but it had not removed the pressure from foreign outflows and global risk repricing.

Corporate news was concentrated in leadership, acquisitions and orders rather than quarterly results. HDFC Bank said its board had submitted two candidates to the RBI for the next managing director and chief executive and approved the reappointment of V Srinivasa Rangan and Jimmy Tata as executive directors. The reported development advances the succession process but does not identify the preferred candidate or provide an RBI approval date.

Solar Industries’ subsidiary agreed to acquire all outstanding shares of Omnia Holdings for $1.355 billion, or Rs 12,951 crore, in cash, subject to regulatory and shareholder approvals. Solar Industries’ chief executive Manish Nuwal said the transaction would be funded through internal accruals and long-term debt, with no equity dilution planned. He said the combined business could generate revenue of Rs 30,000 crore to Rs 32,000 crore and EBITDA of Rs 6,800 crore to Rs 7,000 crore in the next two years; those are management projections, not reported results.

KEC International announced Rs 1,303 crore of new orders across transmission and distribution, cables and conductors. Raymond’s aerospace subsidiary disclosed new business with annual potential of about Rs 33 crore, covering more than 300 parts and over 37,000 components, with production beginning progressively in 2026 and 2027. No major quarterly result with a reported consensus comparison was available in the material.

The primary-market calendar remained active. Vama Wovenfab, Shakti Polytarp and Quanto Agroworld opened SME issues on September 15, each with bidding scheduled through September 17. Veegaland Developers and several SME issues were due to close on Tuesday, while Pranav Constructions and Apana Logistics listed.

The NSE IPO is scheduled to open on September 17 and close on September 21. The material reviewed did not provide a verified block or bulk deal for the September 15 session, nor did it provide a complete list of notable results due on the next trading day.