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Indian Market
Weekly Business
Brief
Brief
18 SEPTEMBER 2026
1
Market Recap
Nifty 5023,346.40▼ −0.22%
Sensex74,294.96▼ −0.65%
Bank Nifty56,426.55▼ ~−0.32%
NSE and BSE were closed on Monday, September 14, for Ganesh Chaturthi, leaving four trading sessions during the week. Indian equities fell sharply on Tuesday, with Nifty 50 closing at a five-month low of 23,118.60, before paring losses over the remainder of the week, according to exchange data. For the week overall, Nifty 50 eased 0.22% to close at 23,346.40, Sensex declined 0.65% to 74,294.96, and Bank Nifty eased about 0.32% to 56,426.55. Broader mid-cap and small-cap indices ended the week higher, according to exchange data.
Why it matters:
- Brent crude traded above $107 a barrel on Tuesday following reported attacks on Saudi energy infrastructure, coinciding with the US 10-year Treasury yield moving above 5%, according to market reports.
- The US Federal Reserve raised its benchmark rate by 25 basis points on Wednesday, its first increase since 2023, coinciding with India's 10-year G-Sec yield extending its rise above 7%, according to market reports.
2
US Federal Reserve Raises Rates to 3.75–4%, First Increase Since 2023
The US Federal Reserve raised its benchmark interest rate by 25 basis points to a target range of 3.75–4% on September 16, its first increase since 2023, according to the central bank's post-meeting statement. The Federal Open Market Committee approved the move unanimously, with the statement noting that inflation remains elevated. The US 10-year Treasury yield moved above 5% during the week, coinciding with the decision, according to market reports.
Fed Funds Rate3.75–4%▲ +25bp
US 10-yr Treasury>5% (wk)
Why it matters:
- The rate increase coincided with continued pressure on the rupee and a further rise in India's 10-year G-Sec yield during the week, according to market reports.
- The Fed's updated projections point to the possibility of a further rate increase later in the year, according to the post-meeting statement.
3
Global AI Slowdown Call Triggers Selloff; Nifty IT Bucks the Trend
Global equity markets, including the Nasdaq Composite, declined this week after a group of artificial intelligence industry leaders called for a deliberate slowdown in AI model development, according to media reports. Indian benchmark indices fell sharply on Tuesday to a five-month low amid this global selloff along with rising crude oil prices and bond yields, according to exchange data, though the Nifty IT index was among the few sectoral gainers that session. Market commentary attributed the divergence to reduced near-term disruption concerns for traditional IT services companies relative to AI-linked technology stocks.
Nifty IT (Sep 15 session)▲ gainer
Nasdaq Composite (wk)▼ declined
Why it matters:
- Nifty IT was one of the few sectoral gainers during the broader market's five-month-low session on Tuesday, according to exchange data, contrasting with declines in global technology indices.
- The divergence highlighted differing investor reactions between AI-linked technology stocks globally and India's IT services companies, according to market commentary.
4
Tata Group Stocks Fall as Tata Sons Governance Dispute Deepens
Shares of several Tata Group companies declined on Friday, with the group's combined market value falling by an estimated ₹31,000 crore, according to market reports. The decline followed a Tata Sons board meeting at which directors voted to reappoint N. Chandrasekaran as executive chairman for a further five-year term, a resolution that Tata Trusts subsequently characterised as invalid, according to company disclosures and media reports. Tata Chemicals declined about 8.89%, Tata Investment Corporation fell about 5%, and TCS declined about 3.64%, according to exchange data.
Tata Group m-cap (day)▼ ~−₹31,000 cr
Tata Chemicals (day)▼ −8.89%
Why it matters:
- The dispute reportedly involves differences between Tata Sons chairman N. Chandrasekaran and Tata Trusts chairman Noel Tata, according to media reports, and touches on the group holding company's future structure.
- Media reports described it as the group's most serious boardroom dispute since a previous chairman's departure in 2016, in a similarly contested exit.
5
India's Forex Reserves Rise to Record $785.7 Billion
India's foreign exchange reserves rose by $44.9 billion during the week ended September 4 to a record $785.7 billion, according to Reserve Bank of India data released this week. The increase was linked to inflows under a special RBI swap window for deposits from non-resident Indians, according to central bank data. The rise placed India among the world's largest holders of foreign exchange reserves, according to RBI and market reports.
Forex Reserves$785.7 bn
Weekly increase▲ +$44.9 bn
Why it matters:
- Higher reserves provide the Reserve Bank of India with greater capacity to manage currency volatility, according to market commentary, at a time when the rupee has faced pressure from rising crude oil prices.
- The RBI's special deposit scheme for overseas Indians has drawn cumulative inflows of over $136 billion since inception, according to central bank data.
6
NSE IPO Opens for Bidding, Oversubscribed on Day 2
The National Stock Exchange of India's initial public offering opened for public bidding on September 17 and was oversubscribed on the second day of bidding, according to exchange data. The issue, entirely an offer for sale sized at about ₹22,569 crore with a price band of ₹1,700–1,785 per share, is scheduled to close on September 21, according to regulatory filings. The qualified institutional buyer portion was subscribed above its full quota, while the retail portion remained below full subscription as of Day 2, according to exchange data.
Overall Subscription (Day 2)~1.1x
QIB Portion (Day 2)~1.43x
Why it matters:
- The offer-for-sale structure means all proceeds go to selling shareholders including State Bank of India, according to regulatory filings, with no fresh capital raised by NSE itself.
- Listing is scheduled for September 24, according to exchange disclosures, which would make it among the largest IPOs in Indian market history by issue size.
7
Bond Market Update
India's 10-year G-Sec yield rose further to around 7.06% this week, according to exchange data, extending its rise above the 7% mark reached the previous week. Market commentary linked the rise to the US Federal Reserve's interest rate increase and a broad bond selloff driven by elevated crude oil prices and higher US Treasury yields. The US 10-year Treasury yield moved above 5% during the week, according to market reports.
10-yr G-Sec7.06%▲ rose (wk)
Why it matters:
- Rising yields make equities relatively less attractive and increase financing costs across the economy, according to market commentary.
- Yield movements during the week coincided with the US Federal Reserve's rate increase and continued elevated crude oil prices, according to market reports.
8
Commodities
Gold prices on MCX rose to around ₹154,000 per 10 grams this week, up by approximately ₹1,900, or about 1.3%, according to exchange data, recovering after three consecutive weekly declines. Silver prices on MCX rose to around ₹240,700 per kilogram, up by approximately ₹7,300, or about 3%, for the week, according to exchange data. Market commentary linked the gains in both metals during the week to a pullback in crude oil prices and continued global bullion demand.
Gold (10g)~₹154,000▲ ~+₹1,900 (wk)
Silver (kg)~₹240,700▲ ~+₹7,300 (wk)
Why it matters:
- Both gold and silver posted weekly gains after three consecutive weekly declines, according to exchange data, reflecting a shift in precious metals sentiment.
- Price moves in both metals during the week were linked to fluctuations in crude oil prices and the US dollar, according to market commentary.
9
Currency Update
The Indian Rupee closed the week near ₹95.89 per US dollar, compared with around ₹95.57 the previous Friday, according to exchange data. The rupee weakened by approximately 32 paise during the week, a slower pace of decline than the previous week's 108-paise fall, according to market commentary, as the US Federal Reserve's rate increase and elevated crude oil prices weighed on the currency. The rupee touched an intra-week high of 96.11 on September 16, according to exchange data.
USD/INR₹95.89▼ −32 paise (wk)
Why it matters:
- The rupee's decline this week coincided with the US Federal Reserve's interest rate increase and continued elevated crude oil prices, according to market commentary.
- The currency held within a comparatively narrower range this week than the previous week, according to exchange data, despite briefly touching a weaker level of 96.11 on September 16.