Nifty and Sensex Open Higher on Rate Cut Hopes

Market Update at 10:20 AM: India’s equity benchmarks opened on a strong note on Tuesday as global investors turned optimistic over the rising chances of a U.S. interest rate cut this month. The positive sentiment supported risk assets across emerging markets, including India.

At 09:15 a.m. IST, the Nifty 50 was up 0.4 per cent at 24,864.1, while the BSE Sensex advanced 0.4 per cent to 81,129.69. Gains were broad-based, with all 16 major sectoral indices trading in positive territory.

The broader indices also participated in the rally. Mid-Cap stocks rose 0.2 per cent, while Small-Cap counters gained 0.3 per cent. Investors have increasingly turned to mid-cap and small-cap shares in recent sessions, with several delivering multibagger returns over the past year.

Information technology stocks led the morning gains, advancing 1.4 per cent. Infosys surged 3.4 per cent after the company announced that its board will consider a share buyback proposal. The move comes on the back of strong Quarterly Results and rising investor demand for capital returns, such as dividends and buybacks.

The global backdrop also played a role. Bets for a U.S. Federal Reserve rate cut at its September 16–17 policy meeting strengthened after economic data showed fewer-than-expected job additions in August. Lower U.S. interest rates generally make emerging markets like India more attractive for foreign portfolio investors, adding momentum to Indian equities.

Pre-Market Update at 7:45 AM: On Tuesday, September 9, the Indian equity markets are expected to open higher, following a positive trend in global markets. As of 7:04 AM, the GIFT Nifty was trading at 24,939, up 38 points. The optimism is supported by firm Asian markets and overnight gains in the US, where the Nasdaq Composite closed at a record high amid growing expectations of a Federal Reserve interest rate cut.

On Monday, September 8, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 2,170.35 crore. In contrast, Domestic Institutional Investors (DIIs) turned net buyers, purchasing shares worth Rs 3,014.30 crore.

The Indian equity benchmark indices ended Monday with marginal gains. The Nifty 50 rose 0.13 per cent to close at 24,773.15, while the BSE Sensex added 0.09 per cent to settle at 80,787.3. Both indices had gained as much as 0.5 per cent during the session. The Bank Nifty ended at 54,186.90 with similar gains. Sectorally, the auto index outperformed after companies announced price cuts following tax reductions, while weakness in IT stocks capped the upside. Mid-cap and small-cap stocks advanced between 0.16 and 0.5 per cent.

US markets closed higher on Monday, with the Nasdaq setting new intraday and closing highs. The Nasdaq gained 0.45 per cent to 21,798.70, while the S&P 500 added 0.21 per cent to finish at 6,495.15. The Dow Jones Industrial Average rose 114.09 points, or 0.25 per cent, to close at 45,514.95. Traders are awaiting key inflation data this week, which will guide the Federal Reserve’s rate decision.

Crude oil prices extended gains, supported by OPEC+’s modest output hike and concerns about possible sanctions on Russian oil. WTI crude futures rose to USD 62.4 per barrel, while Brent crude climbed to USD 66.1 per barrel. Meanwhile, the US dollar weakened, with the dollar index slipping to 97.344, its lowest since July 24.

Gold prices stayed firm, holding near record highs as investors expect a US Federal Reserve interest rate cut this month. Spot gold rose 0.1 per cent to USD 3,640.41 per ounce, close to its all-time high of USD 3,646.29 hit on Monday.

For today, RBL Bank, PG Electroplast and Titagrah Rail Systems will remain on the F&O ban list.

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