Nifty Cautious Start Amid Oil Price Worries and Fed Rate Hike Expectations

The Nifty 50 index started September 2026 on a cautious note, as oil prices and Federal Reserve rate hike expectations weighed on sentiment. The GIFT Nifty September 2026 futures fell by 31 points.

Global growth optimism received a boost from the stronger-than-expected US jobs report, which also increased expectations of a Federal Reserve rate hike in September. However, rising oil prices and fresh US-Iran tensions kept investors cautious.

The European Central Bank is expected to raise its policy rate to 2.75% this week, while attention will shift to US inflation data due later in the week. The August consumer price index report could provide further clues on the Fed's policy path.