Nifty Plunges Below 24K as Brent Crude Surges Past $97

The Nifty 50 index plunged below its key psychological support level of 24,000 on September 2, 2026, as global markets reacted to rising geopolitical tensions and higher energy prices. The benchmark opened at 23,858 following a sharp increase in Brent crude oil prices, which reached nearly $97 per barrel.

Higher energy costs pose a significant concern for the Indian economy, which imports a large portion of its oil. This may lead to increased raw material costs for various industries, including aviation, paints, tyre manufacturing, and automotive companies. These businesses may struggle to pass on these additional costs to consumers immediately, potentially impacting their profit margins.

The sell-off in domestic stocks is partly driven by the movement of funds from emerging markets like India into U.S. assets due to higher U.S. Treasury yields. This has led to an uneven impact across different sectors, with energy-related stocks showing relative strength while IT and automobile sectors have faced more pronounced selling.

The Indian economy reported strong GDP growth of 7.8% for the first quarter of the 2027 fiscal year, but global macroeconomic factors are currently overriding domestic growth indicators.