Nifty Slips Below 23,850 as Crude Surge Hits Auto Stocks

Indian markets declined sharply on September 2 as rising crude prices and elevated global bond yields weighed on sentiment, dragging auto stocks lower. Indian equity markets came under intense selling pressure on September 2, 2026, with the Sensex falling around 600 points and the Nifty trading below the 23,850 mark. Rising crude oil prices emerged as one of the key factors behind the market decline, raising concerns over inflation, higher corporate costs, and India’s import bill. Global cues added to the pressure, with bond yields remaining elevated amid concerns about a near-term US rate hike. Higher yields can reduce the attractiveness of emerging-market equities and keep investors cautious. The Nifty Auto Index dropped nearly 3%, despite several automakers reporting strong August sales. Among major losers,

declined around 6%, Eicher Motors fell 4.5%, and Mahindra & Mahindra (M&M) slipped nearly 3%, leading the sector’s decline. Investors are closely tracking crude oil prices, global bond yields, and broader market developments. Volatility could remain elevated through the remainder of the session, with market direction likely to depend on both global and domestic cues.