Nifty ends four-session decline as metals and financials support a cautious rebound

Indian equities recovered after four sessions of declines, but the rebound remained selective. Buying in metals, oil and gas, private banks and selected large-cap financial stocks provided support, while foreign selling and higher energy costs kept the broader tone restrained.

Domestic institutional investors bought equities for a 19th consecutive session on September 4, according to market data cited by Moneycontrol. The available material does not establish that this buying alone drove the close, but it helped offset continued foreign outflows.

Tata Steel, APL Apollo and Hindustan Zinc were identified as leading metal names. Market reports linked the strength in metals to expectations around the US payrolls data and improved global risk sentiment before the release. The sector’s advance was therefore more closely tied to global macro positioning than to a new domestic metals policy announcement in the available material.

Reliance Industries, Bajaj Finance, Trent, Adani Ports, HDFC Bank, Kotak Mahindra Bank, UltraTech Cement, Titan, Mahindra & Mahindra and Hindustan Unilever were among the major gainers cited in reports. SBI Life and HDFC Life were also identified as notable gainers. Reports attributed the financial-sector support to selective buying rather than to a single new earnings catalyst.

The recorded sector readings show IT, pharma and health, and telecom and internet among the laggards. Available reports do not identify a specific company announcement explaining those declines. One possible market interpretation is that higher US yields and renewed uncertainty over the Federal Reserve’s rate path weighed on rate-sensitive technology and growth exposures, but that remains an inference rather than an established cause.

The market is entering the week with a new trading-process change. Exchanges revised the pre-open auction schedule from September 7 to align it with the closing auction framework. Order entry is scheduled from 9:00 a.m. to 9:05 a.m., followed by a limit-order-only window until 9:10 a.m.; matching is scheduled between 9:10 a.m. and 9:12 a.m., with unmatched orders moving into continuous trading by 9:15 a.m.

SEBI has also said it will review the settlement-price methodology for derivative contracts on expiry after the closing auction session became operative on August 3. Reports said a formal consultation paper was expected within about a week. The review matters for brokers, exchanges and derivatives participants because any change could affect expiry-day price formation and capital-market infrastructure revenues.

US equities closed lower on September 4 after a stronger-than-expected August jobs report increased concern that the Federal Reserve could raise interest rates at its September meeting. Asian shares opened with a firmer bias on Monday, while oil rose after reported US-Iran attacks on ships in the Gulf. The combination leaves Indian equities balancing support from global growth expectations against a renewed energy-supply and geopolitical risk premium.

The US 10-year Treasury yield remained near 4.78% after the jobs data, while the dollar index was near 99.14 in the available market reports. Higher US yields can pressure foreign flows into emerging markets and raise the discount rate applied to long-duration equities. For India, the risk is amplified if higher crude worsens the trade balance and inflation outlook.

Foreign portfolio investors sold Rs 8,731.33 crore of Indian equities in the week ended September 4, according to NSDL data cited by BusinessLine. Domestic institutional investors bought Rs 8,930 crore on September 4, according to Moneycontrol. The opposing flow pattern explains why domestic liquidity has been cushioning the indices even as overseas selling remains a constraint.

The latest macro material available for the session shows real GDP growth of 7.8% year-on-year in the first quarter of financial year 2026-27, against 6.9% in the year-ago quarter. The same material reported a wider current-account deficit of $4.2 billion, or 0.5% of GDP, and a merchandise trade deficit of $86.1 billion in the quarter.

August manufacturing PMI fell to 52.8 from 53.5 in July, the weakest expansion in five years, while services PMI rose to 54.1 from 53.3. July consumer-price inflation was reported at 4.45%, with food inflation at 5.52%. August GST collections rose 14.8% to Rs 2 lakh crore.

The RBI’s liquidity management is a key domestic watchpoint. The central bank is expected to use a 30-day variable-rate reverse repo auction to absorb Rs 7 lakh crore of liquidity generated by the FCNR(B) scheme, against reported banking-system excess liquidity of Rs 10.5 lakh crore. The implication for markets is that surplus liquidity may support financial conditions, but sterilisation could influence short-term money-market rates and bond demand.

Tata Motors’ subsidiary TML CV Holdings B.V. launched a recommended all-cash tender offer for Iveco Group at EUR 14.10 per share, valuing the Italian commercial-vehicle maker at approximately EUR 3.82 billion. The offer opens on September 7 and closes on October 26. Iveco’s board unanimously recommended the offer. The transaction gives Tata Motors a significant corporate event to absorb as investors assess financing and integration considerations; the available material does not provide an earnings impact estimate.

JSW Steel reported consolidated crude-steel production of 24.65 lakh tonnes in August 2026, up 3% year-on-year. Indian operations produced 23.87 lakh tonnes, up 4% year-on-year, with capacity utilisation at 88%. SAIL separately reported August crude-steel output of 1.68 million tonnes, up 8% year-on-year.

The RBI approved LIC’s acquisition of up to 9.99% of ICICI Bank’s paid-up share capital or voting rights within one year. The approval is a regulatory development for the two financial institutions; the available material does not state whether LIC has begun purchases or provide a transaction value.

Lupin’s formulation plant in Shamshabad, Telangana, was inspected by the US Food and Drug Administration from August 27 to September 4. The inspection ended with a Form FDA 483 containing four observations. The material does not say whether the observations will lead to enforcement action or quantify any financial effect.

The primary-market calendar is busy. Pranav Constructions will open its main-board issue on September 7, with a reported price band of Rs 118 to Rs 124 a share; the issue comprises fresh capital of Rs 315.6 crore and an offer for sale of Rs 35.43 crore. Apana Logistics will open a Rs 34.14 crore fixed-price issue.

Block activity includes purchases of Swiggy shares by BNP Paribas Financial Markets and Goldman Sachs Investments Mauritius I. Other reported transactions include Ohana India Growth Fund’s additional 1.64% stake in Shankara Buildpro, the sale of a 0.85% stake in ESDS Software Solution by Anchorage Capital, and the sale of shares in CARE Ratings by TenCore Partners Master.

The available material does not provide a complete list of Monday’s listings or all IPOs closing on the day. It does, however, indicate that India’s main-board IPO pipeline includes 11 companies seeking a combined Rs 7,055 crore between September 7 and September 15.