Indian equity indices snapped a four-day losing streak and ended higher on September 4, with the BSE Sensex closing up 362.57 points or 0.48 percent at 76,515.43 and the NSE Nifty gaining 24.25 points or 0.10 percent at 23,897.70. According to reports from The Hindu, the recovery was led by buying across metal, oil & gas and private banking stocks amid gains in global stock markets. The Sensex surged as much as 730.28 points, or 0.95 percent, during the day to hit an intraday high of 76,883.14, while the Nifty breached the 24,000 mark to hit a high of 24,005.75, up by 132 points. However, both indices pared some gains in the newly introduced Closing Auction Session, settling with modest gains. Market sentiment remained cautious ahead of the US nonfarm payrolls report, with investors awaiting fresh cues on the Federal Reserve's monetary policy trajectory.
Among the Sensex gainers, Tata Steel, Reliance Industries, Bajaj Finance, Trent, Adani Ports, HDFC Bank, Kotak Mahindra Bank, UltraTech Cement, Titan, Mahindra & Mahindra and Hindustan Unilever were among the major performers. As reported by The Hindu, Bharti Airtel, HCL Technologies, Eternal, Asian Paints, Tata Consultancy Services, Tech Mahindra, Sun Pharmaceuticals, ICICI Bank, Bharat Electronics Ltd and Maruti Suzuki India were among the laggards. The Nifty Metal index emerged as the biggest gainer, rising 1.27 percent by closing, supported by strong moves in APL, Tata Steel, and Hindustan Zinc. However, realty, pharma and IT sectors witnessed selling pressure, with the Nifty Realty index losing 0.98 percent after reversing gains from the previous session. According to Vinod Nair, Head of Research at Geojit Investments Ltd, stock- and sector-specific buying remained evident across the broader market, with small-cap indices touching fresh intraday lifetime highs.
Private banking stocks provided significant support to the market recovery, with HDFC Bank rising 0.8% after reportedly raising close to $12 billion through Foreign Currency Non-Resident (Bank) deposits under the Reserve Bank of India's concessional swap window. Kotak Mahindra Bank also gained 0.8%, contributing to the financial sector's outperformance. The rally in private banking stocks came as global rate expectations turned more favorable after comments by US Federal Reserve Governor Christopher Waller reduced fears of a rate hike later this month. Improved risk appetite following the shift in rate expectations helped lift rate-sensitive financial stocks, though the sector's gains were not enough to push the Nifty back above 24,000. As per Geojit Investments Ltd, strong earnings momentum, resilient economic growth, and robust domestic demand continue to underpin investor confidence in the broader market.
According to Hedged.in's Riyank Arora, the market showed firmer session with steady buying interest as leadership from large-cap counters helped sentiment stay positive. BSE Sensex held firmly above its crucial support levels with immediate support placed around 76,300–76,100, while resistance is seen near 76,800–77,100. The Nifty 50's ability to hold above its key supports underscores the underlying bullish tone, with 23,850–23,750 serving as immediate support and a break past 24,000–24,050 resistance setting the stage for the next leg higher. Arora noted that the market's ability to build on recent gains speaks to underlying strength, with the broader trend remaining firmly in the bulls' favour as long as supports hold. As per Geojit Investments Ltd, gains remained capped due to profit booking at higher levels and persistent geopolitical tensions in West Asia.
Global markets provided positive support with Asian equities trading higher and US Treasury yields holding steady as traders scaled back expectations of a Federal Reserve rate hike. Brent crude, the global oil benchmark, fell 0.40 percent to USD 95.14 per barrel, providing some relief from previous concerns. Hong Kong's Hang Seng rose 1.74 percent, South Korea's KOSPI advanced 1.64 percent, and Japan's Nikkei 225 settled 1.28 percent higher, while Shanghai's SSE Composite index ended 0.30 percent lower. Markets in Europe were largely trading flat, while U.S. stock markets ended over 1% higher on Thursday. Foreign Institutional Investors offloaded equities worth ₹2,345.87 crore on Thursday, but Domestic Institutional Investors remained net buyers, purchasing equities worth ₹4,977.46 crore. The Indian rupee ended unchanged at 94.4850 per U.S. dollar, rising 0.9 percent week-on-week.
