Closing Bell: Nifty Slips to 24,055, ITC Rallies 4.3% on Price-Hike Buzz

1 Sep 2026 , 06:59 PM

Indian benchmark indices continued to be on the losing streak to a second straight session on September 1, 2026. The Nifty index slipped 24.60 points to 24,055.80 and the Sensex erased 12.99 points to 76,944.28 towards the end of the day. The drop in the indices come as renewed tension between the US and Iran pushed Brent crude above $91 a barrel denting the investor risk appetite. Bank, auto, realty, and healthcare stocks bore the brunt of the selling, dragging the Nifty Bank down over 1%, even as a sharp rally in ITC on cigarette price-hike expectations, along with gains in IT and telecom counters, helped cushion the downside.

Market Overview: Nifty, Sensex, and Bank Nifty Performance

• Nifty 50 closed at 24,055.80, down 24.60 points (0.10%)
• Sensex ended at 76,944.28, down 12.99 points (0.02%)
• Nifty Bank settled at 57,409.60, down 615.35 points (1.06%)

Top Gainers

1. ITC Limited — closing at 266.60, up by 4.34%
2. Bharti Airtel Limited — closing at 1,877.20, up by 3.60%
3. Adani Ports and Special Economic Zone — closing at 1,647.50, up by 3.41%
4. HCL Technologies Limited — closing at 1,351.40, up by 2.99%
5. Reliance Industries Limited — closing at 1,309.00, up by 2.51%

Top Losers

1. Shriram Finance Limited — closing at 1,059.10, down by 4.58%
2. Maruti Suzuki India Limited — closing at 12,950.00, down by 4.41%
3. Nestle India Limited — closing at 1,438.20, down by 3.90%
4. Max Healthcare Institute Limited — closing at 1,003.00, down by 3.75%
5. InterGlobe Aviation Limited (IndiGo) — closing at 5,052.00, down by 3.48%

Trending stocks

1. ITC Limited —

• Closed at ₹266.60, up 4.34%

⮚ Cigarette Price-Hike Reports Boosted Sentiment: Media reports suggested cigarette manufacturers, including ITC, may raise prices by up to 17% next month, reversing some of the pressure built up since February’s GST and excise duty overhaul on tobacco products.

⮚ Deep-Value Rebound After Tax-Led Correction: Analysts noted that ITC’s valuation had turned attractive following the sharp correction triggered by the 40% GST hike on cigarettes earlier this year, attracting bargain buying.

⮚ Strong FMCG Pack Buying Lifted the Counter: The Nifty FMCG index closed 0.94% higher, with ITC leading the gains across the pack and emerging as the top contributor to the index’s outperformance.

⮚ Heavy Volumes Signalled Renewed Investor Interest: The rally was accompanied by a sharp jump in traded volumes, adding over ₹16,000 crore to the stock’s market capitalisation during the session.

2. Maruti Suzuki India Limited —

• Closed at ₹12,950.00, down 4.41%

⮚ Weak August Sales Data Triggered Selling: Maruti Suzuki sold 219,220 vehicles in August 2026, a sequential decline of nearly 10% from July’s 241,421 units, unsettling investors despite healthy year-on-year growth.

⮚ Soft Export Numbers Added to the Pressure: The company’s exports fell over 7% on a yearly basis in August, weighing further on sentiment around the counter.

⮚ Technical Breakdown Reinforced Bearish Momentum: The stock broke below its supporting trendline and slipped under its 9-DMA, 20-DMA, and 50-DMA, with the MACD giving a bearish crossover, according to technical analysts.

⮚ Broader Auto Sector Stayed Under Pressure: The Nifty Auto index declined 1.44% as monthly sales updates across the sector kept sentiment cautious through the session.

Sectoral Performance Index

Indices	Change
Nifty Realty	-1.42%
Nifty Auto	-1.22%
Nifty Financial Services Ex-Bank	-1.10%
Nifty Pharma	-1.45%
Nifty India Defence	-0.73%
Nifty PSU Bank	-1.21%
Nifty Private Bank	-0.87%
Nifty IT	0.98%
Nifty FMCG	0.94%

Sectoral Performance & Key Reasons

Sectoral performance remained mixed on 1 September 2026, with IT (+0.98%) and FMCG (+0.94%) emerging as the key outperformers, supported by selective buying and comparative stronger investor interest in defensive and technology stocks. In contrast, Pharma (-1.45%) was the worst-performing sector, followed by Realty (-1.42%), Auto (-1.22%), PSU Banks (-1.21%), Financial Services Ex-Bank (-1.10%), and Private Banks (-0.87%), as investors booked profits and remained cautious amid elevated crude oil prices and weak market breadth. The broader market also remained under pressure, with banking, auto and realty stocks weighing on sentiment, while IT and FMCG gains provided some support.

Main Reasons for Stock Market Down Today

1. Renewed US-Iran Tensions Triggered a Risk-Off Mood

Fresh military exchanges between the US and Iran, including strikes reported near the Strait of Hormuz, revived fears of supply disruption and geopolitical instability, prompting investors to trim exposure to equities across bank, auto, realty, and healthcare stocks.

2. Elevated Crude Oil Prices Weighed on Sentiment

Brent crude climbed above $91 a barrel, its highest level in months, stoking concerns over India’s import bill, inflation, and corporate input costs, and adding to broader market caution.

3. Weak Auto and NBFC Counters Dragged the Indices

Soft monthly sales and export data from Maruti Suzuki and continued selling pressure in NBFC names such as Shriram Finance amid sector-wide risk-off sentiment kept the auto and financial services space under pressure through the session.

4. Broad-Based Selling in Bank, Realty, and Pharma Stocks

The Nifty Bank index slipped over 1%, while Nifty Realty and Nifty Pharma also declined more than 1% each, as investors booked profits and turned cautious ahead of further clarity on the geopolitical situation.

5. Gains in ITC, IT, and Telecom Stocks Capped the Downside

A sharp rally in ITC on cigarette price-hike expectations, along with gains in Bharti Airtel, HCL Tech, and Reliance Industries, supported by firm Nifty IT and Nifty FMCG indices, helped the benchmarks trim their intraday losses and end only marginally lower.

 

Summary-

Indian benchmark indices closed the day marginally lower on 1 September 2026, wherein the major indices continued to end in losses for a second consecutive session, as a result of renewed US-Iran tensions and elevated crude oil prices weighed on sentiment. However, losses were capped by a strong rally in ITC and gains in IT and telecom stocks.

• Bank, auto, realty, and pharma stocks led the decline, dragged down by weak sales data from Maruti Suzuki and continued selling pressure in NBFC counters such as Shriram Finance. FMCG bucked the trend on ITC’s rally, while IT also ended higher.

• Investor sentiment was remained cautious by renewed geopolitical tensions in West Asia and Brent crude rising above $91 a barrel. This was however supported by bargain buying in select heavyweights that helped the market trim its intraday losses.

With the Nifty 50 closing at 24,055.80, down 24.60 points (0.10%), the Sensex ending at 76,944.28, down 12.99 points (0.02%), and the Nifty Bank slipping 615.35 points (1.06%) to 57,409.60, the day’s trade reflected broad-based caution amid geopolitical uncertainty, with selective buying in ITC, IT, and telecom stocks helping the market limit its losses.

Disclaimer – The stock/s and indices mentioned in this article are discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.