Global Markets Today, September 29, 2026: Sensex, Nifty May See Weak Start as Asian Stocks Decline, Oil Surges

Mumbai, September 29: Indian markets could see a cautious to weak start on Tuesday, tracking losses across Asian equities and on Wall Street as a surge in crude oil prices, higher US Treasury yields and renewed uncertainty over the US-Iran peace process weighed on global risk appetite. Elevated oil prices are particularly significant for India, a major crude importer, while rising US yields could add pressure on emerging-market assets. 

Asian markets under pressure 

Asian equities traded mostly lower on Tuesday as rising oil prices and higher US Treasury yields weighed on sentiment. Japan’s Nikkei went down 0.9%, South Korea’s Kospi declined 0.5% and MSCI AC Asia Pacific ex-Japan slipped 0.3%, while China’s blue chip CSI 300 Index edged down 0.08% as investors also assessed fresh uncertainty around US restrictions on Chinese components used in data centres. 

The weakness in Asia followed a cautious session on Wall Street, where major US benchmarks ended lower overnight. Investors remained concerned that the renewed surge in crude prices could add to inflationary pressures and complicate the outlook for US interest rates. 

Wall Street ends lower 

US stocks declined on Monday after US President Donald Trump rejected an Iranian peace proposal, raising uncertainty over the prospects of a near-term de-escalation of the conflict. The Nasdaq fell 0.9%, while the broader market remained under pressure from the potential impact of higher energy costs and tighter financial conditions. 

US Treasury yields also climbed sharply. The 10-year yield moved above 5.27%, its highest level in 19 years, while the two-year yield approached 5%. Higher yields can weigh on emerging-market assets by increasing the relative attractiveness of US fixed-income investments. 

Nvidia gained, bucking the broader trend, after announcing a $150 billion increase in its share buyback authorisation. 

Oil prices remain key risk 

Crude oil remained the biggest concern for global markets, with Brent trading around $106.60 a barrel in Asian trade after rising above $108 on Monday. Prices jumped after Trump’s rejection of the Iranian proposal, keeping the geopolitical risk premium in crude elevated. 

For India, higher crude prices pose a particular risk because the country imports a large share of its oil requirements. A sustained rise in energy costs can put pressure on the trade balance, inflation, the rupee and corporate margins. 

The pressure on Indian refiners could also intensify as Russian crude supplies to India are expected to tighten in October and November amid stronger Chinese demand and disruptions to Russian exports. Indian refiners may therefore need to source more expensive barrels from the Middle East and West Africa. 

Indian markets in focus 

The combination of weak Asian equities, lower Wall Street benchmarks, elevated crude prices and rising US bond yields points to a cautious to weak opening for the Sensex and Nifty on Tuesday. 

Investors are likely to track crude oil and global bond yields through the session, along with developments around the US-Iran conflict. Indian equities crashed on Monday, with elevated oil prices weighing on sentiment. Against this backdrop, crude, geopolitics and global interest-rate expectations are likely to remain key drivers of market sentiment. 

Source

•  Exchanges