The Sensex slipped 12.99 points to close at 76,944.28 and the Nifty 50 fell 24.60 points to end at 24,055.80 on Tuesday, 1 September 2026, extending losses to a second session as bank, auto, realty and healthcare stocks weighed amid renewed US Iran tension.
Nifty FMCG and IT outperformed while Healthcare, Auto, Realty and Pharma lagged, with Shriram Finance, Maruti Suzuki and InterGlobe Aviation the top Nifty losers.
KEI Industries fell 7% and Polycab nearly 6% after UltraTech Cement began commercial production of wires and cables in Gujarat, while sugar stocks dropped up to 7% as the government halved dealer stock limits.
Milky Mist hit the 10% upper circuit at ₹232.03 on a 1,000% profit jump, and Brent crude rose 3.30% to $91.29 as Trump threatened further strikes on Iran.
The Sensex fell 12.99 points, or 0.02%, to close at 76,944.28, while the Nifty 50 ended 24.60 points, or 0.1%, lower at 24,055.80.
The broader market took the real hit. The Nifty MidCap fell 1.39% and the Nifty SmallCap declined 0.23%, a sharp reversal after midcaps had held up well through August’s weakness.
Impact on the stock market
Sectoral gainers: Nifty FMCG and Nifty IT outperformed, with IT recovering after leading the declines on Monday.
Sectoral losers: Nifty Healthcare, Nifty Auto, Nifty Realty and Nifty Pharma underperformed, while the Nifty MidCap’s 1.39% fall marked the broadest weakness of the session.
| Sector/Index | Performance |
| IT & BPM sector | 0.98% |
| Healthcare sector | -1.60% |
| Oil & Gas sector | 0.35% |
| Real estate sector | -1.42% |
| PSU Bank in India | -1.21% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| ITC | 266.60 | 4.34 |
| Bharti Airtel | 1,877.20 | 3.60 |
| Adani Ports | 1,647.50 | 3.41 |
| HCL Tech | 1,351.40 | 2.99 |
| Reliance | 1,309.00 | 2.51 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Shriram Finance | 1,059.10 | -4.58 |
| Maruti Suzuki | 12,950.00 | -4.41 |
| Nestle | 1,438.20 | -3.90 |
| Max Healthcare | 1,003.00 | -3.75 |
| Interglobe Avi | 5,052.00 | -3.48 |
Market aftermath: Impact on stocks
Wires and Cables Stocks: Polycab and KEI Fall Up to 7% as UltraTech Starts Production
Shares of the major wires and cables companies fell on September 1 after UltraTech Cement started commercial production at its Jhagadia plant in Gujarat. KEI Industries was the biggest loser, falling 7% to ₹5,335, while Polycab India declined nearly 6% to ₹8,895 and Havells India closed 1.5% lower at ₹1,225.
The scale of the entry explains the reaction. UltraTech’s facility has an installed capacity of 10.98 lakh kilometres for house wires and light duty cables, backed by a planned investment of ₹1,800 crore over two years, of which around ₹888 crore had been committed by June 2026. The company is targeting an asset turnover of 5 to 7 times, an internal rate of return of around 25% and a return on capital employed above 20%. The launch also arrived ahead of schedule: UltraTech had guided for a start in the December quarter. ICICI Direct noted the industry is growing at 12 to 13% a year, and with the shift from unorganised to organised players continuing, UltraTech’s existing reach across the construction ecosystem gives it a ready route to customers. For incumbents, that means tougher competition for market share and potential pressure on pricing.
Sugar Stocks: Down Up to 7% as the Government Halves Dealer Stock Limits
Sugar stocks fell sharply on September 1 after the government tightened stockholding limits for dealers to curb hoarding and speculative trading. The Ministry of Consumer Affairs, Food and Public Distribution cut the maximum quantity dealers can hold to 2,000 quintals from 4,000 quintals, effective September 15 and in force until November 30, 2026. Dealers will also be barred from holding stock for more than 30 days from receipt. Kolkata and its extended metropolitan area, a distribution hub for eastern and northeastern India, keeps the 4,000 quintal ceiling.
The sell off was broad. Dwarikesh Sugar Industries fell 7.02% to ₹48.74, Triveni Engineering dropped 5.76% to ₹278.60, Uttam Sugar Mills lost 5.15% to ₹296, Dalmia Bharat Sugar declined 4.53% to ₹462.20 and Balrampur Chini Mills fell 4.40% to ₹663. Avadh Sugar, Dhampur Sugar, Shree Renuka, Bajaj Hindusthan and Simbhaoli all closed lower, with EID Parry down 0.91%. The move follows a series of interventions in recent weeks, including tighter inventory rules for large consumers and duty free imports of 1 million tonnes of raw sugar until October 31, as the government tries to cool prices that had risen sharply ahead of the festival season.
Milky Mist: Upper Circuit on a 1,000% Profit Jump, Up 28% Since Listing
Milky Mist Dairy Food shares hit the 10% upper circuit at ₹232.03 on the NSE after the company reported a more than 1,000% jump in standalone net profit to ₹64.5 crore for the June quarter, from ₹5.7 crore a year earlier, with revenue up 45% to ₹973 crore. The stock has now risen 28% since listing at ₹165 on August 18, and the market value stands at ₹17,862.68 crore.
The business model is the attraction. Bonanza’s Balaji Rao Mudili noted that Milky Mist avoids low margin liquid milk entirely and converts its milk into paneer, cheese, curd, butter, ghee, yoghurt and ice cream, with paneer, cheese and curd contributing 52.3% of first quarter revenue. Its products sell at 10 to 30% premiums to large brands, and its gross margin of 34.21% compares with 26 to 30% for Hatsun, Heritage and Dodla. An extended summer helped too, with ice cream sales up 60% and yoghurt up 153%.
The caution comes on valuation. Arihant Capital’s Arpit Jain pointed out that the 1,000% jump sits on an exceptionally weak base quarter, and that at 130 times FY26 earnings, or 68 times annualised first quarter profit, the stock is expensive even against Hatsun at 60 to 71 times and far above Dodla, Heritage and Parag at 20 to 31 times. The fundamentals are strong and the 31% revenue growth rate since FY24 is real, he said, but one quarter should not be the reason to buy at these levels. Single facility concentration in Tamil Nadu is another risk to weigh.
Crude Oil: Back Above $91 as Trump Threatens Further Strikes
Crude oil futures rose on Tuesday morning as US President Donald Trump threatened further strikes against Iran and a tanker reported being struck near the Strait of Hormuz. December Brent futures were at $91.29, up 3.30%, and October WTI futures were at $86.79, up 1.20%. On the MCX, September crude futures rose 1.08% to ₹8,237.
Trump told reporters the renewed strikes did not signal a return to full scale war, but added that the US would hit Iran hard and that there would be a response. Separately, UK Maritime Trade Operations reported that a tanker was struck by three unknown projectiles 17 nautical miles east of Khasab, Oman, while completing an outbound transit of the strait, with no casualties reported. US Central Command dismissed Iranian Revolutionary Guard claims that a supertanker had struck two mines, calling it disinformation intended to intimidate commercial shipping. Elsewhere, zinc rose 1.05% to ₹421.80 on the MCX, while cottonseed oilcake gained 2.20% to ₹3,070 and jeera added 0.28% to ₹21,245 on the NCDEX.
Conclusion
September’s first session was flat on the index and rough almost everywhere else. Midcaps fell 1.39%, wires and cables makers lost up to 7% to a new competitor, and sugar stocks dropped as much as 7% on a regulatory clampdown, while Milky Mist’s upper circuit showed strong results still get rewarded, valuation warnings notwithstanding. Oil is back above $91 with Washington promising a response to Iran and a tanker incident near Hormuz, so the geopolitical overhang has not lifted. The lesson from Tuesday is that the biggest risks right now are stock and sector specific. Know what you own, and keep watching the strait.
