Global Markets Today, September 7, 2026: Asia Rises, Oil Near $97; Indian Equities Seen Opening Cautiously Higher

Mumbai, September 7: Indian equity benchmarks are likely to open on a cautious note on Monday, with gains in Asian markets offering some support, although a sharp rise in crude oil prices and growing expectations of higher U.S. interest rates could limit the upside. 

Asian equities advanced in early trade, with Japan’s Nikkei rising over 2% and South Korea’s Kospi gaining 3%. MSCI’s broadest index of Asia-Pacific shares outside Japan was up about 0.9%, helped by optimism over global economic growth after stronger-than-expected U.S. jobs data. 

The upbeat tone across Asian markets could provide a positive cue for Indian stocks at the open. However, investors are likely to remain wary as the global backdrop is becoming increasingly complicated by rising energy prices and expectations that central banks may tighten policy. 

Oil prices remain key risk 

Crude oil prices remained elevated, with Brent futures climbing to around $96.80 a barrel and U.S. West Texas Intermediate crude reaching $92. Brent had gained 7.8% last week, while WTI rose nearly 10%, as escalating military tensions between the U.S. and Iran raised fears of prolonged disruptions to oil supplies through the Strait of Hormuz. 

The latest escalation is particularly important for India, one of the world’s largest crude oil importers. Sustained high oil prices could pressure the rupee, widen India’s import bill and add to inflation concerns, while also raising input costs for several sectors. 

US rate outlook clouds global sentiment 

The stronger-than-expected U.S. jobs report has also complicated the interest-rate outlook. U.S. employers added 162,000 jobs in the latest report, reinforcing expectations that the Federal Reserve could raise interest rates at its September 15-16 meeting. Markets are currently pricing roughly a 57% probability of a September rate hike. 

That could weigh on emerging-market assets, including Indian equities, by keeping U.S. bond yields elevated and limiting foreign portfolio flows. 

Investors are increasingly anticipating an ECB rate hike to 2.75% this week, with another increase to 3% seen possible by December. 

For Indian markets, therefore, the early signal is positive but not decisively bullish. Strong Asian cues could help the Sensex and Nifty at the open, but elevated crude prices, geopolitical tensions and a more hawkish global interest-rate outlook are likely to keep gains in check. Investors will also track the rupee and foreign fund flows closely as the session progresses. 

Source

• Exchanges