8th Straight Gain for Nifty50, Auto Stocks Lead the Rally

Market Update at 12:30 PM: India’s benchmark Nifty50 index extended its winning streak for the eighth consecutive session on Friday, staying on track to end the week on a firm note. The sustained momentum reflects continued buying interest across select Large-Cap and Mid-Cap counters, while Small-Cap stocks also participated in the move.

On the Sensex index, Bharat Electronics, Bajaj Finance, Maruti Suzuki, Axis Bank, L&T and Infosys emerged as the Top Gainers. On the other hand, HUL, NTPC, Zomato (Eternal), State Bank of India, Power Grid and Bharti Airtel were among the laggards, limiting broader gains in the market.

As of 12:00 AM, the BSE Sensex was trading at 81,944.83, higher by 396.10 points or 0.49 per cent. The Nifty 50 also gained 118.40 points or 0.47 per cent to trade at 25,124.40.

In the broader market, the Nifty MidCap index added 0.25 per cent while the Nifty SmallCap index advanced 0.43 per cent. Investors continued to track opportunities in mid-cap and small-cap segments, which have been in focus this year on the back of Quarterly Results, dividends, bonus issues and IPO activity.

Among sectors, the Nifty Auto index stood out as the top gainer, rising 0.7 per cent, supported by stocks such as Maruti Suzuki. In contrast, the Nifty FMCG index was the biggest drag, down 0.62 per cent, as selling pressure weighed on key components.

Market Update at 10:15 AM: Indian shares opened higher on Friday, tracking global market strength as softer U.S. jobs data overshadowed hotter-than-expected inflation, boosting expectations of Federal Reserve rate cuts.

The Nifty 50 rose 0.28 per cent to 25,074.45, while the BSE Sensex gained 0.26 per cent to 81,758.95 as of 09:15 a.m. IST. Fifteen of the 16 major sectors advanced at the open, reflecting broad-based gains. The domestically focused small-cap and mid-cap indices rose 0.4 per cent each, indicating positive sentiment among investors looking at both emerging and mid-sized companies.

The IT index gained about 1 per cent, led by a 2 per cent rise in Infosys after the company approved its largest-ever share buyback of USD 2.04 billion at Rs 1,800 per share. The buyback price represents a premium of around 19.2 per cent over the last close, making Infosys a potential multibagger candidate for existing shareholders.

Investor sentiment was further supported by expectations of a U.S. rate cut next week and in the subsequent two meetings. Data showing softness in the U.S. labor market offset a rise in August inflation, making emerging markets like India attractive for foreign portfolio investors (FPIs), as lower Treasury yields and a softer dollar increase the appeal of large-cap, mid-cap, and small-cap stocks.

Pre-Market Update at 7:30 AM: On Friday, September 12, the Indian equity market is set for a positive start, tracking strength in global markets. As of 7:12 AM, the GIFT Nifty was trading near 25,180, up 73 points, suggesting a higher opening for the Sensex and Nifty 50.

US ambassador-designate to India Sergio Gor stated that India and the US are “not that far apart” on reaching a trade agreement. Union Minister Piyush Goyal indicated that the first tranche of the agreement is expected to be finalised by November 2025. This development holds importance for both large-cap and mid-cap companies with significant global exposure.

On Thursday, September 11, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,472.37 crore. In contrast, Domestic Institutional Investors (DIIs) remained net buyers for the 13th consecutive session, purchasing shares worth Rs 4,045.54 crore. The equity benchmarks extended their winning streak for the seventh session. The Sensex closed at 81,548.73, up 123.58 points or 0.15 per cent, while the Nifty 50 settled at 25,005.50, rising 32.40 points or 0.13 per cent.

Infosys unveiled its largest-ever buyback programme worth Rs 18,000 crore. The IT major will repurchase 10 crore fully paid-up equity shares, representing up to 2.41 per cent of its total equity share capital, at Rs 1,800 per share. This price carries a 19 per cent premium over the last BSE closing. Such corporate actions often impact investor sentiment, similar to dividends, bonus issues or rights issues, and are closely tracked across small-cap and large-cap segments.

In the US, all three major indices closed at record highs after inflation data releases. The Dow Jones gained 1.36 per cent to 46,108.00, the S&P 500 advanced 0.85 per cent to 6,587.47, and the Nasdaq rose 0.72 per cent to 22,043.08. US CPI rose 0.4 per cent in August, the largest monthly increase since January. Weekly jobless claims increased by 27,000 to 263,000, showing pressure in the labour market.

Gold prices extended gains for the fourth straight week, with spot gold at USD 3,637.06 per ounce, up 0.1 per cent. Bullion recorded a 1.4 per cent weekly rise. Crude oil declined on concerns of oversupply and weak demand. Brent crude fell 0.45 per cent to USD 66.07 a barrel, while WTI slipped 0.5 per cent to USD 62.06. The US dollar index weakened 0.28 per cent to 97.51 against key global currencies amid expectations of further rate cuts.

For today, RBL Bank and Oracle Financial Services Software will remain on the F&O ban list.

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