Nifty, Sensex Snap 4-Day Losing Streak; Nifty Smallcap Hits Fresh All-time High

Indian benchmark indices closed higher on Friday, supported by improved global sentiment after expectations of a US Federal Reserve rate hike in September weakened. Lower probability of monetary tightening eased pressure on bond yields and provided support to the domestic equity markets.

US Fed Governor on Interest Rates 

US Fed Governor Christopher Waller indicated that he would favour keeping interest rates unchanged at the upcoming policy meeting if incoming economic data confirms a further moderation in inflation. According to CME FedWatch data, the probability of a September rate hike declined to around 50%, compared with nearly 63% in the previous session.

Nifty Recovers After Four-Day Slide, Still Closes Week With Over 1% Loss

The Nifty 50 started the session on a positive note, opening at 23,910.90 and maintaining a positive bias as the session progressed. The index briefly crossed the 24,000 mark and touched an intraday high of 24,005.75 before witnessing selling pressure and closing near the day’s low. 

The Nifty 50 eventually settled at 23,897.70, gaining 24.25 points or 0.10%. The Sensex climbed 362.57 points to close at 76,515.43, snapping a four-session losing streak. However, the Bank Nifty remained under pressure and ended marginally lower by 0.02%.

The India VIX, which reflects market volatility, declined nearly 6% and settled near the 10.7 level. Despite Friday’s recovery, the Nifty 50 ended the week lower by 1.15%, extending its decline for the fourth consecutive week.

Brent Crude Nears $96 as Middle East Tensions Raise Supply Concerns

Brent crude oil prices remained elevated, with Brent crude trading around $96.31 per barrel. Oil prices recorded strong weekly gains as rising tensions between Iran, the US and Israel increased concerns over possible disruptions to energy infrastructure and shipments through the Strait of Hormuz.

Nifty Smallcap Index Hits Record High

The broader market ended the final trading session of the week on a mixed note. The Nifty Smallcap 100 index rose 0.22% and touched a fresh all-time high during the session, whereas the Nifty Midcap 100 index slipped 0.25%. 

Nifty Metal Index Gained Over 1%

The majority of the sectoral indices ended in the red. Only 3 out of 11 sectoral indices ended in positive territory.

The Nifty Metal index emerged as the top performer, surging 1.07% and extending its recent gains. On the other hand, the Nifty Realty index was the biggest laggard, declining 0.9%.

Rupee Strengthens as Dollar Weakens, RBI Support and Inflows Aid Sentiment

The Indian rupee remained firm against the US dollar on Friday, supported by fresh foreign currency inflows and a softer dollar index. The domestic currency traded around the 94.46 to 94.50 per dollar zone after opening nearly flat, extending gains seen in the previous session.

European Markets Trade Mixed

European markets traded with a mixed trend on Friday, with investors remaining cautious ahead of key global economic cues.
Germany’s DAX index gained 76.71 points or 0.29% to trade at 26,084.28, supported by buying interest in select large-cap stocks. The UK’s FTSE 100 remained almost flat, rising 2.98 points or 0.03% to 10,834.50, while France’s CAC 40 slipped 7.22 points or 0.09% to 8,279.18.

Dow Futures in Red Ahead of Jobs Report; Nasdaq Gains

US stock futures indicated a cautious start for Wall Street, with technology stocks showing better momentum.

Nasdaq 100 futures gained 136.25 points or 0.46% to 29,661, reflecting continued strength in technology-focused stocks. S&P 500 futures edged higher by 5 points or 0.06% at 7,759.75, while Dow Jones futures declined 46 points or 0.09% to 53,699.

Disclaimer: The article is for informational purposes only and not investment advice.