Sensex gained 314.39 points, or 0.41%, to 76,884.74, while Nifty advanced 97.80 points, or 0.41%, to 24,012.25 at 9:40 am on Thursday, marking a strong recovery after three sessions of losses. The Nifty Private Bank index gained 1.17% and Nifty PSU Bank index advanced 1.14%, placing all three banking indices among the top sectoral gainers. The broader Nifty smallcap 100 and Nifty midcap 100 indices gained 0.96% and 0.10% respectively, indicating a broad-based rally across market segments. This recovery comes after GIFT Nifty had jumped 150 points to 24,116 around 7:45 am on Friday, signalling a firm start for Indian equity benchmarks.
US Federal Reserve Governor Christopher Waller's comments prompted investors to pare bets on a September rate hike, fuelling a strong overnight rally on Wall Street and gains across Asian equities. As reported by Moneycontrol, following Waller's remarks, markets lowered the probability of a September Fed rate increase to 50.4% from 63.2% on Wednesday, according to CME's FedWatch tool. The Nasdaq Composite jumped 1.40% to 26,584.06, helped by gains in AI-related megacap technology stocks, while the Dow Jones Industrial Average climbed 1.18% to 53,686.11 and the S&P 500 advanced 1.06% to 7,747.71 in the previous session. US Treasury yields fell on Thursday as investors assessed the Federal Reserve's latest signals on interest rates, with Fed Governor Christopher Waller saying he is inclined to keep rates unchanged at the central bank's meeting later this month, easing some concerns around borrowing costs.
India mobilised a record USD 127.23 billion through foreign-currency deposits under a special central bank programme aimed at bolstering the country's foreign exchange liquidity. According to the Reserve Bank of India, Foreign Currency Non-Resident (Bank), or FCNR(B), deposits accounted for USD 127.226 billion in inflows as of August 31. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that "The USD 127 billion mobilised under the FCNR(B) scheme has come way above the consensus estimates. The implication of this from the market perspective is that the rupee will stabilise, imparting confidence to FIIs." Among banking stocks, RBL Bank gained 4% after mobilising $3.4 billion under the RBI swap facility, with Citi terming this an "outsized haul for a mid-sized bank, that reshapes the earnings narrative." ICICI Bank added about 1.5% and State Bank of India rose 1%, among the lenders with the highest mobilisation.
Asian markets traded mostly higher on Friday, following the overnight rally on Wall Street, as Treasury yields eased. According to NDTV Profit, Japan's Nikkei 225 gained 0.65%, while the Topix index fell 0.28%. South Korea's Kospi rallied 1.23%, while Kosdaq surged 1.18%. Hong Kong's Hang Seng index indicated a higher opening. The positive sentiment was driven by US Federal Reserve Governor Christopher Waller's comments supporting holding the Fed funds target rate steady if data shows inflationary pressures are abating. The Dow Jones Industrial Average gained 624.16 points, or 1.18%, to 53,686.11, while the S&P 500 rallied 81.11 points, or 1.06%, to 7,747.71. The Nasdaq Composite closed 366.23 points, or 1.40%, higher at 26,584.06, with tech stocks leading the rally.
Anand James, Chief Market Strategist at Geojit Investments, said "We had gone in yesterday, preferring to re assess bias on test of 23800, rather than expecting a vertical drop. The swing higher from this region, supports hopes of a push higher, but we are not confident of chasing prices higher either. Favoured view requires a break above 24150-24215 region to signal strength. Downside marker may be placed near 23860." According to Moneycontrol, a sustained move above 24,200 could stabilise the near-term structure, while a break below 23,800 could drag the index towards 23,600. Foreign institutional investors (FIIs/FPIs) turned net sellers in Indian equities on September 3, offloading shares worth ₹2,346 crore, while domestic institutional investors (DIIs) continued to provide support, buying equities worth ₹4,977 crore during the session. The Indian rupee ended Thursday's session on a stronger note, closing at 94.59 against the US dollar, gaining 14 paise from the previous trading session, as reported by The Times of India. The currency showed resilience, settling at 94.73 despite higher crude prices and weak domestic stocks, with foreign capital inflows providing support.
