Post Session: Quick Review

Indian equity benchmarks ended higher on Friday, supported by easing rate-hike concerns after dovish comments from Federal Reserve Governor Christopher Waller prompted traders to scale back expectations of a rate increase this month. However, gains remained limited as elevated crude oil prices continued to weigh on broader market sentiment.

The BSE Sensex ended nearly half a percent higher, supported by broad-based buying in select heavyweight stocks, with gains in Tata Steel, Reliance Industries, HDFC Bank and Bajaj Finserv leading the recovery. Similarly, the Nifty 50 ended marginally higher, supported by selective buying in heavyweight stocks and positive global cues, while FIIs selling and weakness in IT, auto, and financial services stocks capped the upside.

Some of the important factors in trade:

India's banking system liquidity surplus surges to record Rs 9.71 lakh crore: Some support came as the Reserve Bank of India's (RBI) data showed that surplus liquidity in the banking system has surged to a record high of Rs 9.71 lakh crore, boosted by flows received under the FCNR (B) scheme of the RBI.

India-New Zealand free trade agreement is likely to come into force next month: Traders also took a note of the report stated that the India-New Zealand free trade agreement is likely to come into force next month. On April 27, the two countries signed the free trade agreement (FTA) to boost the two-way commerce in goods and services and promote investments. 

Automotive industry continues to be key driver of India’s economic growth: Traders took encouragement with Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra’s statement that India’s automotive industry continues to be a key driver of economic growth, contributing more than Rs 22.75 lakh crore to the economy.

On the global front: European stocks were trading mostly higher, as traders await the U.S. monthly employment report for August later in the day for additional clues on the outlook for interest rates. Asian markets closed mostly in the green, following the broadly positive cues from Wall Street overnight.

The BSE Sensex ended at 76515.43, up by 362.57 points or 0.48% after trading in a range of 76515.43 and 76883.14. There were 19 stocks advancing against 10 stocks declining on the index. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.42%, Telecom up by 1.39%, Basic Materials up by 0.61%, Utilities up by 0.50% and Energy up by 0.26%, while Capital Goods down by 0.66%, Realty down by 0.66%, Healthcare down by 0.50%, TECK down by 0.30% and Auto down by 0.18% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 2.91%, Reliance Industries up by 1.61%, Bajaj Finance up by 1.47%, Trent up by 1.34% and Adani Ports and Special Economic Zone up by 1.33%. On the flip side, Bharti Airtel down by 1.24%, HCL Technologies down by 1.24%, Eternal down by 1.09%, Asian Paints down by 0.48% and TCS down by 0.48% were the top losers. (Provisional)

Meanwhile, with an aim to fast-track the bilateral trade pact process, Commerce and Industry Minister Piyush Goyal has said details of the Bilateral Trade Agreement (BTA) with the US will be announced once Washington offers India preferential terms over its competitors. In February, India and the US announced the finalisation of the framework for the first phase of the trade pact. However, changes in the US tariff landscape have led to further negotiations between the two countries. The US imposed an additional 10 per cent tariff on several countries, including India, from July 24.

Goyal is scheduled to visit the US in late September to attend the G20 Trade Ministerial in Milwaukee and hold bilateral talks with US Trade Representative Jamieson Greer. Issues related to the trade pact are expected to be discussed during the meetings. The two-day ministerial will begin on September 30. The US holds the G20 presidency in 2026. Countries such as Sri Lanka, Bangladesh, Thailand, Cambodia, Vietnam, Indonesia and Malaysia are major competitors of India in the US market. A tariff advantage over these countries would improve the price competitiveness of Indian goods in the American market. India exported goods worth about $87 billion to the US in 2025-26.

Goyal further said that India’s nine free trade agreements (FTAs), covering economies with a combined Gross Domestic Product (GDP) of about $60 trillion, would provide preferential access to nearly two-thirds of global trade. He said the other FTAs that India is expected to conclude over the next few months and years - including with Canada, Mexico, Chile, Mercosur, SACU (Southern African Customs Union), GCC (Gulf Cooperation Council) and Israel - along with efforts to review existing trade deals with ASEAN, South Korea and Japan, would give India access to 75 per cent of global trade at tariff rates lower than those faced by its competitors. India has already implemented trade pacts with the UK, Mauritius, Oman, the UAE and Australia.

The CNX Nifty ended at 23897.70, up by 24.25 points or 0.10% after trading in a range of 23895.85 and 24005.75. There were 22 stocks advancing against 28 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI Life Insurance up by 3.50%, Tata Steel up by 2.49%, HDFC Life Insurance up by 2.42%, Reliance Industries up by 1.50% and Trent up by 1.33%. On the flip side, HCL Technologies down by 1.94%, Bharti Airtel down by 1.55%, Maruti Suzuki India down by 1.27%, Coal India down by 1.12% and Bajaj Finserv down by 1.11% were the top losers. (Provisional)

European markets were trading mostly in green; Germany’s DAX gained 17.38 points or 0.07% to 26,020.70 and UK’s FTSE 100 increased 2 points or 0.02% to 10,833.52, while France’s CAC fell 5.3 points or 0.06% to 8,281.10.

Asian markets settled mostly higher on Friday tracking Wall Street's overnight gains driven by retreating Treasury yields after Federal Reserve Governor Christopher Waller stated he is leaning toward keeping interest rates steady at the US central bank's policy meeting this month if the next batch of inflation data shows price pressures are continuing to moderate. A slight decline in global crude prices also kept the market sentiments upbeat, though the Brent crude oil prices continued to trade above $95 a barrel mark due to renewed US-Iran hostilities and elevated concerns over supply disruptions. Further, investors awaited the release of August US jobs report for further cues on the Fed's policy outlook. Meanwhile, the Bank of Japan is widely expected to consider a 0.25 percentage point rate increase to 1.25% at its upcoming policy meeting on September 17-18 to contain inflationary pressures.