Indian Stock Market Today (2 Sep 2026): Sensex Falls 374 Points as Auto Stocks Slide, Coal India Gains

Indian stock markets ended lower on 2 September 2026 as selling pressure across auto, IT and several heavyweight stocks dragged the benchmarks. The Sensex fell 373.93 points, or 0.49%, to close at 76,570.35, while the Nifty 50 declined 141.35 points, or 0.59%, to 23,914.45. The session extended the market's losing run, with investors focusing on rising crude prices, global risk sentiment and stock-specific developments.

Coal India emerged as one of the day's standout gainers after its subsidiary Mahanadi Coalfields filed IPO papers. At the same time, TCS attracted attention after reportedly winning a major Best Buy technology mandate, while HAL, BEML, NHPC, ICICI Bank and HUDCO featured among several companies with significant business developments.

Sensex Falls 374 Points, Nifty Slips Below 24,000

The benchmark indices remained under pressure throughout the session. The Sensex closed 373.93 points lower at 76,570.35, while the Nifty 50 ended at 23,914.45, down 141.35 points. Auto, IT and media stocks were among the weaker sectors, while energy and oil & gas provided some support.

Heavyweight stocks including HDFC Bank, Eicher Motors and other auto names contributed to the market weakness. Eicher Motors was among the notable losers, while the broader Nifty Auto index also came under pressure following mixed vehicle-sales data.

Coal India Rallies as Mahanadi Coalfields Files IPO Papers

Coal India was one of the biggest gainers of the session, rising around 4% after its wholly owned subsidiary Mahanadi Coalfields filed its Draft Red Herring Prospectus for a proposed IPO. The offer comprises up to 66.18 crore equity shares through an Offer for Sale by Coal India.

The proposed listing of Mahanadi Coalfields is significant because it would further expand Coal India's subsidiary monetisation and listing programme. MCL is one of India's largest coal producers, making the proposed IPO an important development for the broader PSU and energy space.

Coal India's own business update also supported sentiment, with coal supplies showing healthy growth. The stock consequently emerged as the day's strongest Nifty 50 performer.

TCS Wins Reported ₹2,000 Crore Best Buy Mandate

Tata Consultancy Services remained in focus after reports that it has won a five-year technology services mandate from US retailer Best Buy, reportedly valued at around ₹2,000 crore. TCS is understood to have emerged ahead of Accenture during the final stage of the selection process.

The mandate covers Best Buy's India global capability centre as well as technology services spanning data, analytics and artificial intelligence. The Bengaluru centre has around 600 employees, and the engagement is expected to deepen TCS's existing relationship with Best Buy.

The development comes as Indian IT companies compete aggressively for global capability centre and AI-led technology contracts. For TCS, the deal adds another large enterprise engagement at a time when investors are closely watching new deal wins and growth in discretionary technology spending.

HAL Moves Closer to ₹13,500 Crore IMRH Programme

Hindustan Aeronautics remained in focus after developments around the proposed Indian Multi-Role Helicopter programme. The design-development phase is expected to involve an allocation of around ₹13,500 crore, with the proposal moving towards consideration by the Cabinet Committee on Security.

The IMRH is being developed as an indigenous medium-lift helicopter for India's armed forces. Progress on the programme could strengthen HAL's long-term defence and aerospace opportunity pipeline, although the development should be distinguished from a confirmed commercial order until formal approvals and contracts are completed.

BEML Bags ₹180.6 Crore Vande Bharat Sleeper Order

BEML secured an additional ₹180.60 crore order from Integral Coach Factory for manufacturing and supplying Vande Bharat sleeper trainsets. The order adds to the company's presence across India's rail and defence manufacturing ecosystem.

BEML has received several orders across rail, defence and international markets in recent months. The latest Vande Bharat order reinforces the company's exposure to India's expanding modernisation of passenger rail infrastructure.

NHPC Wins ₹392 Crore Arbitration Award

NHPC was another company in focus after the state-owned power producer won an arbitration-related dispute involving its Subansiri project. The company is set to benefit by approximately ₹392 crore from the favourable outcome.

The award is important because a favourable arbitration decision can improve the company's financial position and reduce uncertainty associated with long-running commercial disputes. Investors will watch the timing and accounting treatment of the recovery as further details emerge.

HUDCO and Bihar Sign ₹25,000 Crore Infrastructure Funding Agreement

Housing and Urban Development Corporation signed an agreement with Bihar involving infrastructure funding of up to ₹25,000 crore. The partnership is aimed at supporting infrastructure development in the state and could strengthen HUDCO's lending pipeline.

Large state-level infrastructure financing agreements remain an important growth driver for government-backed financial institutions, particularly as spending on urban infrastructure, housing and development projects continues to expand.

ICICI Bank Mobilises $17.9 Billion Under RBI Scheme

ICICI Bank reported mobilisation of approximately $17.9 billion under the Reserve Bank of India's foreign-currency non-resident deposit scheme as of the end of August. The development highlights the bank's ability to attract foreign-currency deposits and strengthens its funding base.

The bank also increased its stake in ICICI Prudential Life Insurance to around 52.8% through a transaction valued at approximately ₹1,470 crore. The move further consolidates ICICI Bank's ownership of its insurance subsidiary.

Auto Stocks Under Pressure

Auto stocks were among the biggest casualties of the session. Eicher Motors fell sharply, with the stock declining around 5.5% intraday and marking one of its steepest drops in more than a year. Hero MotoCorp also came under pressure after its August sales numbers showed weakness in motorcycles.

The sector's performance reflected a mixed picture in monthly sales data. While some manufacturers reported resilience in segments such as scooters and commercial vehicles, motorcycle volumes and concerns around exports weighed on sentiment.

Other Stocks in Focus

Several other stocks saw notable corporate developments during the session. Vodafone Idea gained around 4.7% after announcing a new brand identity and a major FY27 capex plan, while its AGR-related dues remained a key long-term issue for investors.

Ceigall India highlighted an order pipeline of around ₹6,000 crore, while GPT Infraprojects secured a railway order of approximately ₹483.7 crore from RVNL. Sterlite Technologies received a CRISIL upgrade to AA, supporting sentiment around the company's credit profile.

Morepen Laboratories also attracted attention after its stock surged significantly over recent weeks, supported by a sharp increase in quarterly profit. Meanwhile, PVR INOX approved a ₹300 crore share buyback at ₹1,450 per share.

Power, Infrastructure and Defence Remain in Focus

Despite the broader market weakness, infrastructure, power and defence-related companies continued to generate positive corporate news. HAL's proposed helicopter programme, BEML's Vande Bharat order, NHPC's arbitration win, HUDCO's Bihar funding agreement and GPT Infra's railway order all highlighted continued government-linked spending and infrastructure activity.

These developments reinforce the importance of order books and government-led capital expenditure as potential earnings drivers for Indian industrial and infrastructure companies.

Sector Analysis

Auto and IT were among the weaker pockets of the market, while energy stocks remained relatively resilient. Coal India was the standout large-cap gainer following the Mahanadi Coalfields IPO development and healthy coal-supply update.

Financial stocks were mixed, with ICICI Bank showing strong deposit mobilisation while HDFC Bank remained under pressure. Infrastructure, defence and rail-linked names continued to attract attention because of new orders and project developments.

Market Outlook

The immediate market trend remains cautious after the Nifty slipped below 24,000 and the Sensex extended its decline. Investors are likely to track global risk sentiment, crude-oil prices and further selling or buying in heavyweight stocks.

On the positive side, corporate catalysts remain strong across selected sectors. Coal India's Mahanadi Coalfields IPO, TCS's reported Best Buy mandate, HAL's IMRH programme, BEML's Vande Bharat order and NHPC's arbitration win provide company-specific reasons for investors to remain selective.

The key question for the broader market is whether the Nifty can quickly reclaim the 24,000 level. Until then, investors may continue to favour stocks with strong earnings visibility, improving order books, balance-sheet strength and clear corporate catalysts.