Weekly Market Update — 6th Sep 2026

Indian Markets

Nifty 50 fell by more than a percent and closed at 23,897 (-1.15%).

The worst performing sector was Nifty Auto which fell by over 4%. The US-Iran conflict resumed mid week which led to USOIL rising to $91.23 per barrel. This increases the input cost for the Auto sector and a sector which is so sensitive to input costs reacts violently. This coupled with slowing auto sales and continued rainfall deficit, rural sales are also expected to be low this festive season. Passenger vehicles are discretionary spend of a consumer, and a slow economy due to lower economic activity and lower rainfall affects the spending of a consumer. If a consumer has lesser money to spend, he will cut down on his discretionary spending, meaning he'll decide to not buy a car rather than deciding to not buy food. This has led to lower expectations for vehicle sales this festive season.

The best performing sector was Nifty Oil and Gas, which rose by 1.08% over the week due to increased oil prices. The higher oil prices which are a problem for the auto industry are actually a benefit for oil and gas companies. Higher oil prices increase realised margins for these companies and hence they saw a minimal upmove.

Broader Markets

Nifty Next 50 and Nifty Midcap underperformed the Nifty 50, but Nifty Small Cap and Micro Cap remained flat throughout the week. Small cap and micro cap have consistently outperformed the headline indexes this year and are actually having a great year. If we look at the last 6 months returns, Nifty Micro Cap is up around 29% and Small Cap is up around 19%.

Gold

Gold fell by 2.25% over the week and ended at ₹1,52,767 per 10 grams on Friday. US jobs data released this week turned out to be quite strong. Strong jobs data releases pressure from the US Fed to decrease interest rates. If people are confident that there are not going to be any rate cuts, the US Dollar and Treasuries gain strength and people are comfortable parking their money in Treasuries as compared to gold, as they have certainty of getting higher interest rates.

USOIL

Oil rose by 9.32% this week and the reason remains the same, increased conflict in the Middle East and no certainty about the Strait of Hormuz. This pendulum keeps swinging and impacts every asset class in this world.

Fed Interest Rate Outlook

Comments from Fed Governor Christopher Waller leaned toward holding rates unchanged in September. The strong jobs data hurt the expectations of people who were expecting aggressive rate cuts in the coming months.