Sensex, Nifty End Positive; Smallcap Index Hits All-time High

Market Update at 04:00 PM: The Indian benchmark equity indices, Sensex and Nifty 50, ended higher on Friday as fading expectations of a U.S. Federal Reserve rate hike this month lifted global equities and pulled bond yields lower.

Fed Governor Christopher Waller said on Thursday that he would support keeping interest rates unchanged at the U.S. central Bank’s next policy meeting if upcoming economic data confirms that inflationary pressures are easing. Meanwhile, expectations of a rate hike at the Fed’s mid-September meeting fell to around 50 per cent, from nearly 63 per cent in the previous session, according to CME FedWatch.

The Nifty 50 witnessed a steady recovery during Friday’s session, maintaining a positive bias after opening higher. The index opened at 23,910.90 and moved in a narrow range for most of the day. It touched an Intraday high of 24,005.75, briefly reclaiming the psychological 24,000 mark, before easing in the later part of the session. During the closing auction session, the index declined further and ended below the day’s low.

At close, the Nifty 50 settled at 23,897.70, gaining 24.25 points, or 0.10 per cent. The Sensex also ended in positive territory, rising 362.57 points to close at 76,515.43, snapping a four-day losing streak. Meanwhile, Bank Nifty underperformed and closed 0.02 per cent lower. India VIX plunged over 6 per cent to around the 10.6 level. On a weekly basis, the Nifty 50 declined 1.15 per cent, extending its fall for the fourth consecutive trading week.

Brent Nears USD 96 as Iran Conflict Fuels Supply Concerns

Brent crude prices climbed to around USD 96.31 per barrel, while WTI crude traded at USD 92.68. Oil prices remained on track for a sharp weekly gain as escalating tensions between Iran, the U.S. and Israel kept markets on edge.

Concerns over potential disruptions to energy infrastructure and shipments through the Strait of Hormuz supported crude prices. However, steady shipments and higher Iraqi exports could limit further gains.

Broader Market Ends Mixed

The broader market ended mixed on Friday. The Nifty Midcap 100 index declined 0.25 per cent, while the Nifty Smallcap 100 index gained 0.22 per cent and recorded an all-time high.

Nifty Metal Gains; Nifty Realty Top Sectoral Loser

On the sectoral front, three of the 11 sectoral indices ended in positive territory. The Nifty Metal index gained 1.07 per cent, extending its previous gains, with APL Apollo Tubes share price surging over 4 per cent.

In contrast, the Nifty Realty index declined 0.90 per cent, with eight out of its 10 constituents ending in negative territory.

Stock-Specific Highlights: BSE and Hindustan Aeronautics

Among individual stocks, BSE share price gained 3.14 per cent amid expectations of possible regulatory changes related to derivative settlement pricing. Angel One also moved higher on similar sentiment around capital market companies.

Hindustan Aeronautics gained 1.90 per cent after reports highlighted the delivery of additional GE Aerospace F404-IN20 engines for the Tejas Mk1A programme, supporting sentiment around Defence stocks.

Nifty 50: Top Pullers and Draggers of the Day

The key contributors to the Nifty 50's gains were Reliance Industries, which contributed 28.41 points, HDFC Bank with 18.20 points and Tata Steel with 8.25 points.

On the other hand, Bharti Airtel dragged the index by 19.66 points, followed by ICICI Bank at 10.62 points and SBI at 6.58 points.

Market Breadth on September 4

As of September 4, 2026, market breadth remained in favour of advancing stocks. Out of 3,648 stocks traded on the NSE, 2,017 advanced, 1,519 declined and 112 remained unchanged.

A total of 132 stocks touched their 52-week highs, while 74 stocks hit their 52-week lows. Additionally, 162 stocks were locked in their Upper Circuits, whereas 71 stocks were locked in Lower Circuits.

Market Update at 2:20 PM: The Nifty 50 and the Sensex traded higher on Friday as global equities advanced amid easing concerns over further rate hikes following dovish comments from a U.S. Federal Reserve official.

As of 2:00 PM, the Sensex rose 527.68 points, or 0.69 per cent, to 76,680.54, while the Nifty 50 gained 68.10 points, or 0.29 per cent, to 23,941.55.

SBI Life Insurance Company, HDFC Life Insurance Company and Reliance Industries were the Top Gainers on the Nifty 50 index.

In the broader market, the Nifty MidCap index rose 0.20 per cent, while the Nifty SmallCap index gained 0.66 per cent.

Among sectors, the Nifty Financial Services index was the top gainer. Meanwhile, the Nifty Consumer Durables and Nifty Pharma indices were among the biggest laggards.

Market Update at 12:15 PM: Indian benchmark equity indices traded higher on Friday, September 4, amid gains across global equities as concerns over further interest rate hikes eased following dovish comments from a U.S. Federal Reserve official.

As of 12:00 PM, the Sensex rose 660.04 points, or 0.87 per cent, to 76,812.90, while the Nifty 50 gained 105.90 points, or 0.44 per cent, to trade at 23,979.35.

SBI Life Insurance Company, HDFC Life Insurance Company and Reliance Industries were the top gainers in the Nifty 50 index, supporting the benchmark's upward movement.

In the broader market, the Nifty MidCap index was trading 0.2 per cent higher, while the Nifty SmallCap index advanced 0.66 per cent, indicating positive sentiment across broader market segments.

Among sectors, the Nifty Financial Services index emerged as the top gainer. In contrast, the Nifty Consumer Durables and Nifty Pharma indices were among the biggest decliners.

Market Update at 09:30 AM: Indian benchmark equity indices opened higher on Friday, September 4, as global equities advanced amid easing concerns over further interest-rate hikes following dovish comments from a U.S. Federal Reserve official.

As of 9:18 AM, the Sensex rose 496.99 points, or 0.65 per cent, to 76,649.85, while the Nifty 50 gained 57.15 points, or 0.24 per cent, to 23,930.60.

Tata Consultancy Services (TCS), Tech Mahindra and Wipro were among the top gainers in the Nifty 50. The gains in IT stocks came as easing rate-hike concerns supported sentiment towards technology companies.

In the broader market, the Nifty MidCap index slipped 0.04 per cent, while the Nifty SmallCap index rose 0.46 per cent. Sector-wise, the Nifty IT index was the top gainer, while the Nifty Consumer Durables index declined the most.

Pre-Market Update at 7:40 AM: Indian equities are likely to open on a positive note on Friday, September 4, with GIFT Nifty signalling early gains. GIFT Nifty was trading near 24,023, around 90 points above the Nifty 50's previous close. The move points to a potential gap-up opening for domestic equities, supported by strong overnight gains in U.S. markets and easing concerns over global bond yields.

However, elevated crude oil prices and continued geopolitical tensions remain key factors that could limit aggressive buying during the session.

U.S. markets recorded a strong recovery in the previous session, with all major indices ending higher. The Dow Jones Industrial Average gained 1.18 per cent to 53,686.11, the S&P 500 advanced 1.06 per cent to 7,747.71, while the Nasdaq Composite climbed 1.40 per cent to 26,584.06.

The rally was supported by a decline in U.S. Treasury yields after comments from Federal Reserve Governor Christopher Waller reduced concerns over further monetary tightening. Technology stocks led the gains, supported by renewed investor interest in artificial intelligence-related companies.

Asian markets opened with mixed signals, with the Nikkei 225, Hang Seng, Shanghai Composite and Kospi influenced by overnight gains on Wall Street, currency movements and regional economic concerns. In the previous session, the Nikkei closed at 64,214.48, the Hang Seng at 25,213.31, the Shanghai Composite at 3,942.09 and the Kospi at 6,579.48.

European markets also ended higher in the previous session. The FTSE 100 gained 0.70 per cent, Germany's DAX rose 0.63 per cent and France's CAC 40 advanced 0.07 per cent. Global sentiment improved as lower bond yields provided support to risk assets.

The direction of interest rates remains the major global market trigger. Investors are closely tracking upcoming U.S. economic data for confirmation of the Federal Reserve's policy path. Lower yields have supported equities, while persistent inflation concerns remain a key risk.

Oil prices headed for their biggest weekly gain since July on Friday, September 4, as renewed hostilities between the U.S. and Iran raised fears of prolonged disruption to energy flows through the Strait of Hormuz.

Brent crude edged towards USD 96 a barrel, having climbed more than 7 per cent over the week, while West Texas Intermediate traded near USD 92 a barrel. Benchmark Brent crude had earlier been changing hands around USD 95 a barrel during intraday trade.

The surge came after a period of relative calm was shattered by fresh fighting. The U.S. carried out a bombing campaign earlier in the week, which Iran answered with retaliatory strikes on American bases in the region. The renewed tensions have heightened concerns over potential disruptions to global energy supplies and could remain a key risk for oil-importing economies such as India.

Gold benefited from softer bond yields and a weaker dollar, with international gold prices gaining during the previous session. Silver also remained firm amid expectations of reduced interest-rate pressure.

The U.S. Dollar Index weakened as Treasury yields declined. The 10-year U.S. Treasury yield moved lower towards the 4.76 per cent zone, reducing pressure on global equity markets and providing some relief to emerging-market assets.

The Indian rupee remains sensitive to crude oil prices, foreign fund flows and movements in the dollar. A stronger dollar or a continued rise in crude prices could limit near-term appreciation in the domestic currency.

Indian equities ended lower in the previous session despite recovering from intraday lows. The Nifty 50 closed at 23,873.45, declining 41 points, or 0.17 per cent, after moving between an intraday high of 24,025.40 and a low of 23,786.80. The Sensex closed at 76,152.86, declining 0.55 per cent.

Foreign institutional investors remained net sellers, while domestic institutional investors provided support. FIIs sold equities worth Rs 2,345.87 crore, whereas DIIs recorded net buying of Rs 4,977.46 crore on September 3.

Bank Nifty continues to show relative strength compared with the broader market. The index may find support near recent swing lows, while resistance remains around previous consolidation levels.

India VIX remained subdued compared with historical averages, indicating that markets are not pricing in extreme volatility despite ongoing global risks.

U.S. equities rallied as easing Treasury yields supported technology stocks and improved global risk appetite. The development could remain positive for IT and technology-linked sectors.

Recent NSE regulatory developments also remain in focus. The Supreme Court's disposal of the NSE-SEBI settlement-related matter removed a regulatory hurdle linked to NSE's future plans, which could be neutral to positive for market infrastructure sentiment.

Foreign fund selling remains a near-term headwind for Indian equities, although sustained domestic institutional buying is providing some cushion.

Global interest-rate expectations remain central to market direction, with investors closely watching upcoming U.S. economic data for signals regarding future Federal Reserve action.

Gland Pharma remains in focus following recent developments around its business outlook and broader movements in the pharmaceutical sector.

Rail Vikas Nigam (RVNL) remains on the radar amid infrastructure-related announcements and developments in the Railway sector.

Cipla remains in focus following sector-specific developments and continued investor interest in defensive pharmaceutical stocks.

Avalon Technologies is among the stocks being tracked following recent business updates in the electronics manufacturing segment.

Ramco Systems remains under focus amid developments in the IT services space.

Sterlite Technologies remains in focus due to developments around telecom infrastructure demand.

RBL Bank remains on the radar as banking-sector movements and institutional activity continue to influence the stock.

India's economy recorded strong growth in Q1 FY27, although some sectors continued to face challenges. Agriculture-sector growth moderated to 3.6 per cent in Q1 FY27 from 4.4 per cent in Q1 FY26.

The mining and quarrying sector slipped into a contraction of 2.4 per cent in Q1 FY27, partly due to a high base of 12.4 per cent growth in the corresponding quarter of the previous year.

Overall, domestic market sentiment is likely to benefit from positive global cues and the strong opening indication from GIFT Nifty. However, elevated crude oil prices, geopolitical risks, foreign fund outflows and upcoming U.S. economic data could keep volatility elevated. Traders will closely watch the Nifty 50's ability to reclaim the 24,000 level and sustain gains above key resistance zones.

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

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