Indian Markets Weak Start Ahead as Brent Oil Hits $96 Amid Global Risk-Off Sentiment

Indian markets are set for a weak start on September 2, 2026, as global risk-off sentiment takes hold. Rising Brent crude prices, currently near $96 per barrel, and a spike in US 10-year Treasury yields to 4.81% are weighing on investor sentiment.

The surge in energy costs is driven by geopolitical tensions between the US and Iran, which have heightened fears of potential supply chain disruptions. For India, a net importer of oil, sustained high energy prices are a major concern as they increase the import bill, putting pressure on the rupee and affecting inflation expectations.

Domestic institutional buying has provided some support to the market, with Foreign Institutional Investors (FIIs) net buyers of ₹1,143.38 crore on September 1, 2026, and Domestic Institutional Investors (DIIs) purchasing a net ₹1,846.94 crore in the cash segment.