Sensex, Nifty Open Lower as IPO Rush, Middle East Tensions Weigh on Sentiment

September 7, 2026

Mumbai: Domestic equity benchmarks Sensex and Nifty opened marginally lower on Monday as investors remained cautious amid a busy initial public offering (IPO) calendar and continued tensions in the Middle East. Rising crude oil prices, driven by concerns over possible supply disruptions, also weighed on market sentiment.

The Nifty 50 opened 14.55 points, or 0.06 per cent, lower at 23,883.15, while the Sensex declined 69.38 points, or 0.09 per cent, to open at 76,446.05.

IT, Media Stocks Lead Early Sectoral Losses

In early trading, the Nifty Media index fell 1.26 per cent, while the Nifty IT index declined 1.15 per cent, making them the biggest sectoral losers.

Nifty Auto, Nifty Chemicals, Nifty Private Bank, Nifty FMCG and Nifty Cement indices also traded in the red.

On the other hand, the Nifty Oil & Gas index gained 0.06 per cent. Nifty Metal, Nifty PSU Bank and Nifty Realty also advanced, with gains of up to 0.38 per cent.

IPO Rush Raises Liquidity Concerns

Market analysts said domestic equities have been drifting lower for the past four weeks despite positive economic indicators and corporate earnings.

Elevated crude oil prices and the ongoing IPO boom have emerged as major headwinds for the secondary market. Analysts noted that 11 mainboard IPOs are scheduled to hit the market this week, while several large offerings are also expected later this month.

The heavy IPO pipeline could absorb a significant amount of market liquidity and divert investor attention and funds away from the secondary market.

Nifty Support at 23,800, Resistance Near 23,960

From a technical perspective, analysts said the Nifty’s downside marker at 23,860 remains important, while resistance is seen around 23,960.

The 23,800 level is considered a key support zone. A decisive break below this level could push the index towards the low 23,000s, with 23,570 seen as an initial downside objective.

On the upside, the 24,150–24,215 zone remains a crucial hurdle. A sustained move above this range would be needed to confirm a return of strength, analysts said.

Middle East Tensions Keep Crude Prices Elevated

Crude oil prices traded higher on Monday as escalating tensions between the United States and Iran around the Strait of Hormuz raised concerns about potential disruptions to global oil supplies.

Higher crude prices remain a key concern for Indian equities because India imports a large share of its crude oil requirements. Any prolonged rise in oil prices could increase pressure on inflation and corporate costs while also affecting investor sentiment.

For the domestic market, investors are likely to closely track crude oil prices, developments in the Middle East, IPO subscriptions and institutional flows for further direction.