The Indian equity markets posted notable gains early on Friday, with Sensex adding 512 points, or 0.68 per cent, to reach 76,668 and Nifty gaining 51 points, or 0.22 per cent to reach 23,925. According to reports from Zee News, main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 added 0.03 per cent, and the Nifty Smallcap 100 gained 0.49 per cent. The positive momentum was primarily driven by gains in IT stocks and positive data on the domestic economy. Market volatility eased significantly, with India VIX falling 3.10% to 10.99, indicating reduced investor uncertainty during the early trading session.
Sectoral indices on NSE traded mixed with Nifty IT emerging as the top gainer, up 1.10 per cent, followed by realty sector, which gained 0.50 per cent. As reported by Zee News, Nifty consumer durables posted the highest losses, declining 0.50 per cent. The Nifty Bank was also marginally higher at 57,429.60, while the Nifty Financial Services index gained 0.41%. Nifty Financial Services ex-Bank, MidSmall Financial Services and MidSmall IT & Telecom also gained more than 0.6%. Realty, media and oil & gas stocks were among the other gainers, while consumer durables, auto and FMCG indices traded in the red.
According to market experts cited by Zee News, rising bond yields present negative factors for equity markets globally. The US 10-year yield continues to hover around 4.8 per cent, while in Japan, the 10-year yield is at a 30-year high of 3 per cent. In the UK, the 30-year yield is at 6 per cent, and in India, the 10-year yield is close to 7 per cent. However, these negative factors are being countered by positive news about the Indian economy, particularly impressive high-frequency data regarding GST collections, automobile sales and credit growth. V K Vijayakumar, chief investment strategist at Geojit Investments, highlighted the sharp 97% rise in private investment in the first quarter of FY27 over the year-ago period as a sign of potential turnaround in private capital expenditure.
As reported by Zee News, global sentiment has improved with Wall Street closing higher and Asian markets largely positive. Brent crude remains elevated near $96–97, keeping geopolitical risks around the US–Iran conflict a key factor for market sentiment. In Asian markets, China's Shanghai index gained 0.35 per cent, Shenzhen added 0.27 per cent, Japan's Nikkei added 1.14 per cent, and Hong Kong's Hang Seng Index added 2.09 per cent. South Korea's Kospi added 1.31 per cent, while US markets ended in green overnight with Nasdaq gaining 1.4 per cent, S&P 500 adding 1.06 per cent, and the Dow Jones advancing 1.18 per cent.
According to market participants quoted by Zee News, the immediate support for Nifty is placed at 23,800–23,850 zone, while resistance is seen at 24,050–24,100. For Bank Nifty, immediate support is placed at 57,000–57,200, while resistance is seen at 57,800–58,000. On September 3, foreign institutional investors (FIIs) net sold equities worth ₹2,346 crore, while domestic institutional investors (DIIs) bought equities worth ₹4,977 crore, as reported by Zee News. Vijayakumar expects the competing macroeconomic factors to keep the equity market volatile in the near term, noting that rising global bond yields make Indian equities look less attractive compared to safer assets like US Treasuries.
